Where does a lender's yield come from?
From borrowers. They pay interest to draw stablecoins from the pool, and that interest is shared with the lenders who supplied it. If borrowing demand falls, yield can fall too. Ask where any return comes from before you commit.
What is loan-to-value (LTV)?
The loan amount as a share of your collateral's value. Borrowing $350,000 against $1,000,000 of collateral is a 35% LTV. A lower LTV leaves more room for prices to move before your position is at risk.
What triggers a liquidation?
If your collateral falls in value until your loan crosses the liquidation threshold, the smart contract can sell some or all of the collateral to repay the loan, usually with a penalty. You can lower the risk by borrowing conservatively, adding collateral, or repaying early.
Who controls the funds?
Smart contracts hold and move the funds according to their code, and you connect with your own wallet. There is no bank in the middle. That also means you are responsible for your wallet and keys.
Can I withdraw at any time?
Your principal is committed for the period you choose, from 0 to 10 years, and cannot be withdrawn before that commitment ends. You can withdraw your earned yield at any time. Check the portal for your commitment end date and withdrawal terms.
Are deposits insured?
No. Digital assets in the protocol are not bank deposits and are not FDIC or SIPC insured. Commit only capital you can afford to have at risk.
