# Borrowing & Repaying Tokens

## Borrowing Basics:

* [x] Supplying tokens + Allocating Collateral opens the borrowing feature
* [x] Any assets displayed in the borrow market on the LEND dashboard can be borrowed
* [x] The dashboard will always display a live 'Borrow Limit' which will visualise how much in $ value your account can safely borrow. For ease it also displays this as a %.
* [x] Once you borrow tokens, a borrow balance is created and interest accumulates based on current borrow rates of the market.
* [x] Collateral can be retrieved in full or partially returned by repaying all or some of the outstanding borrow balance.

## How much can I Borrow?

Once you have supplied tokens and allocated collateral a borrow balance can be created. The amount you can borrow will depend on the **collateral factor** of the token you supplied and allocated as collateral. 

**Collateral factor** could also be thought of as a unique loan-to-value metric for each token supplied. 

> Example: If $BUSD has a collateral factor of 75% you would be able to borrow $0.75 for every 1 $BUSD supplied. 

Your borrow limit will always be displayed on the dashboard as both a $ value and a simple % for easily identifying what the limits are for your account.

## Borrow Balance + Interest Fees

Anyone that borrows assets from the LEND protocol will be subject to interest being accumulated based on the current borrow rates of the market. Interest is accumulated at every block this can be used retrieve the current value of a user’s borrow balance with interest.

#### EXAMPLE 

<figure><img src="https://73606151-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FjXPGrJM7sNNhr28OHvH2%2Fuploads%2FoKaELf5bUXH5yJXdjbLh%2FScreenshot%202024-07-14%20at%2011.21.35.png?alt=media&#x26;token=b565d1e4-5a81-40ab-8741-3582b03f5cc5" alt=""><figcaption></figcaption></figure>

In this example the borrower has an active borrow of 20,000.00. Imagine the current APY in the borrow market is 4.62%. This 4.62% represents the amount of interest that will accrue over the course of a year.&#x20;

> **EXAMPLE: How much interest will accrue**
>
> In the example 20,000.00 $USDC is borrowed.&#x20;
>
> The accrued APY is 4.62% (Note that this APY is variable)
>
> If left unpaid the borrow balance will gain 4.62%&#x20;
>
> $20,000.00+ 4.62% = $20,924

To understand more about borrow rates and other important metrics for each available borrow & supply market make sure you read the LEND dashboard guide:

{% content-ref url="../../introduction/quick-start-guide" %}
[quick-start-guide](https://lend.gitbook.io/lend-en/introduction/quick-start-guide)
{% endcontent-ref %}

## Repaying a Borrow Balance:

Once a borrow balance has been created it can be repaid at any time! Either, in full or as a partial repayment. When you repay a borrow balance a few things happen:&#x20;

* [x] Borrow Limit Increases - Meaning some collateral is eligible to be returned to the supplier.&#x20;
* [x] The amount of interest accrued on the borrow balance will be decreased.
* [x] Borrow Account Health is increased - Meaning less risk of liquidation

{% hint style="success" %}
Once the borrow balance has been repaid in full, all original supplied assets as collateral can be retrieved from the protocol.
{% endhint %}