Borrow

How does borrowing work?

You deposit crypto collateral into a position and mint CCPU against it. The collateral stays locked until you repay. One position per collateral asset per wallet, and every position is independent: if one gets liquidated, the others are untouched.

What does it cost?

A one-time minting fee, added to your debt. Example at the current 0.5% setting: mint 10,000 CCPU, receive 10,000, owe 10,050. The fee is a governance parameter and can change, so check the app for the live rate. Beyond it there is no interest and no closing fee, and your debt never grows on its own. Where MakerDAO or Aave charge 4-16% a year, the cost here is known before you mint.

How much can I borrow?

Each collateral asset has a maximum LTV, set per market as acceptance_rate_bps: 8,000 bps = 80% max LTV, so $100 of collateral supports at most $80 of debt. Configured markets run from 6,666 bps (wBTC tier) to 8,500 bps (LST tier). Try the numbers:

When can I be liquidated?

Your health factor is max borrowable divided by debt. At 100% you're exactly at the borrowing ceiling. Below 97%, anyone can queue your position for liquidation, and curing it means getting back above 105%. Health moves with price, so a 20% collateral drop cuts it by roughly 20%. Borrowing at 50-60% LTV instead of the maximum buys you distance for when the market drops 20-30% in a day, which crypto does.

What happens if I'm liquidated?

Queued positions get roughly an hour of grace before anything can proceed, and you can cure at any point while the entry is pending by adding collateral or repaying. If you don't, the Stability Pool burns CCPU to cancel your whole debt and takes your whole collateral. There are no partial liquidations and no auctions. If nothing finalizes within about two hours after grace, the entry expires and the position unlocks.

How is my collateral priced?

By a signed price quote fetched seconds before your transaction and verified on-chain. Quotes older than 5 seconds get rejected. If a price feed misbehaves, per-market debt ceilings and daily borrow caps bound the damage while governance rotates the feed.

Can someone redeem against my position?

Yes, and it surprises people, so read this one. Redemptions let anyone exchange 1 CCPU for $1 of collateral. That's the price floor. A redeemer targets a position, burns CCPU against its debt, and receives that much collateral at the oracle price, minus a fee that stays with the protocol.

Think of it as someone else repaying your debt and taking an equivalent amount of your collateral. At the oracle price you take no net loss: your debt and your collateral fall by the same dollar amount, and your LTV actually improves. What you lose is upside exposure to the collateral that left. A redeemed-against position cannot be hit again for an hour, and the redemption fee (0.5% floor, rising with volume) starts at 100% at launch and decays over about four days, so day-one drains are blocked.

How do I close?

Repay your debt and withdraw the collateral. Repaying burns CCPU immediately and costs nothing. Withdrawing is slower because the custody multisig co-signs every outbound transfer, so exits settle through a queued flow rather than instantly. That's the price of assets never sitting where one program bug could move them.

Leverage looping

Deposit LSTs, borrow CCPU, swap for more LSTs, deposit again. Each loop multiplies the staking rewards and the liquidation risk together. The only reason the math works is 0% interest: pay Maker-style 8% a year on a 3x loop and the fee eats the yield.