🏦Borrowing
Maybe your feeling lucky or want to go big, whatever your reason IGNIS Finance's protocol allows you to use your assets that are deposited in the protocol in order to gain additional funds without the need of selling your current assets. So imagine you have some $FLR but you think it will continue to rise in price so you don't want to sell it, but there is another coin that you also think has the potential to rise and you don't want to miss out on the action from either coin. Well in this case a user might be willing to take on some extra risk and use their $FLR as collateral to take out a loan without having to sell their $FLR. They can then take their loaned tokens and use them to buy the other crypto they have been eyeing and pay back their loan after they have made their gains.
Here is an example using $XRP:
Collateralize by putting $XRP into the IGNIS protocol
Use $XRP as collateral to borrow.
Enter chosen positions using the borrowed tokens.
How Long Do I Have To Repay My Loan?⌛
Great news! Loan repayment is not subject to a set time limit. Borrowing is allowed for an illimitable amount of time as long as the health of your position is in good standing. However, over time, the accumulated interest will increase, causing your health to decline and raising the possibility that the deposited assets would be liquidated. Always monitor your positions!
How Do I Avoid Being Liquidated?⚠️
Everyone wants to avoid being liquidated and you may do so by paying back your loan or adding more assets in order to maintain a healthy position.
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