# 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="/files/JZJ7LqxYayZYltzpFBaD" 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="/files/Gs4CNLr5smPnV1ToQCA5" 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="/files/pkcXg0As3pxtBkTPbLsr" alt="" width="375"><figcaption></figcaption></figure>
4. **Submit**\
   Confirm the single transaction that both **deposits collateral** and **borrows USDB**.<br>

   <figure><img src="/files/s5Nn4tpkeYQ9urSaDUg8" alt="" width="375"><figcaption></figcaption></figure>
5. View your position on [Dashboard](https://www.bucketprotocol.io/dashboard)<br>

   <figure><img src="/files/amHloq5PC1h4XCgjhx1Q" 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.


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