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Borrowing sends tokens to a wallet and records debt on a lending account. The account must have enough eligible collateral, and the market must have enough available liquidity.

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Borrow in the app

Before borrowing, supply eligible collateral to the lending account. Check that your connected wallet owns the account or has active delegate permission.
  1. Open the account on XOXNO.
  2. Choose Borrow.
  3. Select an asset allowed by the account’s spoke.
  4. Enter a positive amount.
  5. Review the borrow rate, borrowing limit, projected health factor, and recipient.
  6. Approve the transaction in your wallet.
  7. Wait for confirmation on Stellar.
  8. Check the debt balance and received tokens.
If confirmation is unclear, follow Check transaction status before approving another borrow. The account owes the debt even if an integration sends the borrowed tokens to another recipient. Only the owner or an active delegate can borrow from the account.

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Borrowing limits

After borrowing, the account must pass these collateral checks:
  • Debt stays within its borrowing limit. Each asset uses the lower of its current listed loan-to-value (LTV) and its stored liquidation threshold.
  • Health factor is at least 1.
  • LTV-weighted collateral meets the configured minimum-borrow floor.
  • Collateral assets with fewer than three decimals meet their additional minimum balance.
Risk parameters explains the LTV limit and minimum floor. Passing these checks does not prevent later liquidation if prices or debt change.

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Market requirements

The selected asset must be borrowable on the account’s spoke. The borrow also needs room under the spoke’s borrow cap, the account’s position limit, and the market’s utilization ceiling. A borrow must also leave the market’s liquidation cash buffer intact. A protocol-wide pause, a paused listing, or a frozen listing blocks borrowing. The amount must be positive and large enough to record a debt balance. Valid prices are required for every asset valued on the account. A failed collateral price can block borrowing another token. See oracles for price failures.

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Manage debt

Debt accrues interest until repaid. Review health factor after borrowing and as prices change. Borrowing below the limit leaves a larger buffer for those changes. Use Repay to reduce debt. Contract calls and error codes are in the borrowing integration guide.