# Borrowing

## Step-by-step

1. **Select asset and open the Borrow panel**\
   Choose the collateral asset on [**Market page**](https://www.bucketprotocol.io/market) or go to the [**Borrow page**](https://www.bucketprotocol.io/borrow?token=SUI) and pick an asset.<br>

   <figure><img src="https://2164669523-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2Fvo4y92EukVo5jeASAueL%2Fuploads%2FxXY5kIlIm9eCi5DrYZCe%2FCleanShot%202025-09-14%20at%2002.04.26%402x.png?alt=media&#x26;token=68c9ecc2-c2e4-43a3-be1a-2a9d12f26dc3" alt=""><figcaption></figcaption></figure>
2. **Enter amounts**
   * Input **Collateral to deposit**.
   * Input **USDB to borrow**.\
     The panel previews **CR**, **MCR**, **Liquidation/Market Price**, and the **Fixed Interest Rate**.<br>

     <figure><img src="https://2164669523-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2Fvo4y92EukVo5jeASAueL%2Fuploads%2FNOQ5n9wa4g4hhW2So1X9%2FCleanShot%202025-09-14%20at%2002.07.32%402x.png?alt=media&#x26;token=c2aebc4f-a818-4bdd-81dc-719646752376" alt="" width="375"><figcaption></figcaption></figure>
3. **Review health**\
   Confirm the **CR bar** is in a healthy zone and the **CR >= MCR(Liquidation)**.<br>

   <figure><img src="https://2164669523-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2Fvo4y92EukVo5jeASAueL%2Fuploads%2FKyneUwU2isUSmeYETe8i%2FCleanShot%202025-09-14%20at%2002.09.03%402x.png?alt=media&#x26;token=fa1b3aad-86b3-452d-8592-687ad3f58f6c" alt="" width="375"><figcaption></figcaption></figure>
4. **Submit**\
   Confirm the single transaction that both **deposits collateral** and **borrows USDB**.<br>

   <figure><img src="https://2164669523-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2Fvo4y92EukVo5jeASAueL%2Fuploads%2FCNSNu9Xi81db3hQtPR2c%2Fimage.png?alt=media&#x26;token=6693964d-9f44-46f4-9cb5-240e67e632e0" alt="" width="375"><figcaption></figcaption></figure>
5. View your position on [Dashboard](https://www.bucketprotocol.io/dashboard)<br>

   <figure><img src="https://2164669523-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2Fvo4y92EukVo5jeASAueL%2Fuploads%2FOo1sGgvJETkIVIiiEqoA%2FCleanShot%202025-09-14%20at%2002.17.42%402x.png?alt=media&#x26;token=8fc123cd-6aec-4624-a538-ff8bec8274d4" alt="" width="375"><figcaption></figcaption></figure>

***

### Costs and interest

* **No one-time borrow fee.**
* **Fixed borrow rate per asset.** See **Markets** for current rates.
* Interest accrues **in real time** and is added to your debt continuously.

***

### Risk and health checks

* **Collateral Ratio (CR)**\
  CR = Collateral Value / Debt

  \= (Oracle Price \* Collateral Amount) / (Principal + Accrued Interest)
* **Minimum Collateral Ratio (MCR)**\
  Each asset has a fixed MCR. Your position must keep **CR >= MCR**.
* **Liquidation price**\
  For given Debt and Collateral Amount:\
  Liquidation Price = (MCR \* Debt) / Collateral Amount

> Neutral reminder: Always watch your **CR** and **Liquidation Price**. If CR falls below MCR (CR < MCR), the position becomes liquidatable.

***

### Example (SUI)

**Assumptions:**

* Collateral: **1,000 SUI**
* Oracle price: **$5.00 per SUI** -> Collateral Value = **$5,000**
* **MCR (SUI) = 110% (1.10)**

**Borrow 3,000 USDB**

* Entry CR = $5,000 / $3,000 = **1.6667 (166.67%)**
* Liquidation Price = (1.10 \* 3,000) / 1,000(SUI) = $3.30 per SUI

**Borrow 4,000 USDB**

* Entry CR = 5,000 / 4,000 = **1.25 (125%)**
* Liquidation Price = (1.10 \* 4,000) / 1,000 = $4.40 per SUI

> Numbers are illustrative. Real-time accrual will slowly increase debt after opening.