Borrow Policy

Eligibility

Users must meet the following criteria to be eligible for borrowing token XPET by collateralizing token ETH:
a. Possession of a verified account on our platform.
b. Ownership of a sufficient amount of token ETH to serve as collateral.
c. Adherence to all relevant regulatory requirements and platform-specific terms of use.

Collateral Requirements

a. Token ETH is the only accepted collateral for borrowing token XPET.
b. The collateralization ratio is set at 111% , meaning that users must provide collateral worth at least 111% of the borrowed amount in token XPET.
c. The platform reserves the right to adjust the collateralization ratio based on market conditions.

Borrowing Limits

a. The maximum borrowing limit is determined based on the value of the provided token ETH collateral and the current collateralization ratio.
b. Users may not borrow an amount exceeding the established limit.

Interest Rate

a. The interest rate for borrowing token XPET against token ETH is 0%.
b. This rate is subject to change at the discretion of the platform.

Repayment

a. Borrowed amounts must be repaid in token XPET.
b. Users have the flexibility to repay the borrowed amount at any time.

Liquidation:

a. The ratio between collateral assets and borrow assets is hereinafter referred to as the collateralization ratio.
b. If the collateralization ratio changes due to market fluctuations, leading to the value of the collateral assets being equal to or less than the value of the borrowed assets, the platform reserves the right to liquidate the collateral to cover the outstanding loan.

Risk Disclosure:

a. Borrowers are advised to carefully consider the risks associated with borrowing against their token ETH collateral, as market volatility can affect the value of both the borrowed token XPET and the collateral.

Regulatory Compliance:

a. Users are responsible for ensuring compliance with all applicable laws and regulations governing borrowing activities on the platform.

Platform Discretion:

a. The platform retains the right to modify, update, or terminate the borrowing policy at any time, with or without prior notice.
By participating in the borrowing process, users acknowledge that they have read, understood, and agreed to adhere to this Borrowing Policy. Failure to comply with the policy may result in the suspension or termination of borrowing privileges on the platform.
Last modified 2mo ago