> For the complete documentation index, see [llms.txt](https://hyperloan.gitbook.io/hyperloan-docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://hyperloan.gitbook.io/hyperloan-docs/hyperloan-borrowers.md).
# HyperLoan Borrowers
Borrow to Save
Borrowing enables users to access liquidity by utilizing supplied assets as collateral. This process is always overcollateralized, meaning the value of the collateral exceeds the borrowed amount. The protocol manages risk through a Health Factor, which determines the safety of a user's position, and liquidation thresholds, which trigger collateral liquidation if the Health Factor drops below parameter threshold. When a user borrows assets, their borrow position balance is represented by variableDebtTokens (e.g., variableDebtUSDC), which are ERC-20 tokens that track the outstanding borrow balance and accrue interest over time.
Repayment of borrowed assets can be done at any time, and borrow positions are indefinite as long as the overcollateralization is maintained. The Health Factor fluctuates based on the value of the supplied collateral and the borrowed assets, which can change with market conditions and accrued interest. HyperLoan utilizes oracles to provide real-time price feeds of the assets, providing inputs to the calculation of the Health Factor and triggering liquidations when necessary to maintain the protocol's over-collateralization.
#### Borrowing can be performed through [HyperLoan](https://hyperloan.app/) by performing the following steps:
### Step 1: Connect Wallet
To begin, press ‘Connect Wallet’ and select the Ethereum wallet provider corresponding to the wallet holding the collateralized tokens.
### Step 2: Select Token to Borrow
Once connected, navigate to the ‘Dashboard’ and locate the ‘Assets to Borrow’ table. This table lists the available tokens for borrowing, along with key parameters such as available amount, interest rates, and your health factor. The interest rates displayed here are influenced by the borrow utilization rate, which measures the proportion of assets currently borrowed against the total supplied in the pool. As liquidity is borrowed or repaid, these rates are dynamically adjusted to reflect current market conditions.
Select the token you wish to borrow.
### Step 3: Review Borrow Parameters
Before proceeding, review the borrow parameters including the Loan-to-Value (LTV) ratio, Liquidation Threshold (LT) ratio, and your current health factor. These parameters are crucial for maintaining sufficient collateral and avoiding liquidation.
If you are borrowing a network base asset (e.g., BSEC), you will first need to approve the WrappedTokenGateway contract. This approval enables the contract to perform a credit delegation, which performs a borrow and unwraps to the base asset in a single transaction.
### Step 4: Confirm Borrow Transaction
Enter the amount you wish to borrow and confirm the transaction in your wallet. Upon confirmation, the borrowed tokens will be transferred to your wallet. It's important to note that interest on the borrowed tokens begins to accrue immediately and is dynamically adjusted based on the borrow utilization rate.
### Step 5: Monitor Health Factor
Regularly monitor your health factor from the ‘Dashboard’ to verify that your collateral remains sufficient. If your health factor drops, consider supplying more collateral or repaying part of your borrow position to avoid liquidation. The health factor is a critical indicator of the safety of your borrow position, and maintaining it above the liquidation threshold is essential to prevent your collateral from being liquidated.
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