# How to Take Out a Loan

To leverage borrowing, an asset must be pledged as collateral. This function allows you to borrow any of the assets available in the protocol.

**1.- Deposit Collateral**\
Select the asset, approve, and sign.

**2.- Check Your Borrowing Capacity**\
In *Markets* you’ll see the maximum LTV and available liquidity.

<figure><img src="/files/GOsT0vnRRyRk1vspt1aJ" alt="" width="336"><figcaption></figcaption></figure>

**3.- Set the Amount**\
Adjust the slider while keeping your Health Factor above 1.

**4.- Confirm and Monitor**\
The dashboard displays accrued interest, HF, and liquidation alerts.

<figure><img src="/files/u14DexNUbcizozuJZNbz" alt="" width="375"><figcaption></figcaption></figure>

{% hint style="warning" %}
**Remember:** Maximum LTV is dynamic and depends on the asset’s volatility.
{% endhint %}

{% hint style="success" %}
Example: If USDC has an 80 % LTV, every 100 USDC of collateral lets you borrow up to 80 USDC.
{% endhint %}

Additionally, be aware that borrowing incurs interest (APY) on the borrowed asset.


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