> For the complete documentation index, see [llms.txt](https://docs.usefarlight.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.usefarlight.com/guides/borrowers.md). # Borrow USDG against Stock Tokens How a borrower posts a request, reviews the fills, originates a USDG loan against Stock Tokens and manages it through to repayment. Stock Tokens you would rather keep can still raise cash. Farlight lends USDG against them at any hour, at a rate you know before you sign, for a term you choose. Your tokens sit in a non-custodial escrow contract for the life of the loan and return to you when it is repaid. ## Who can borrow Borrowing needs a `BORROWER` attestation on your wallet. Today that is issued to verified businesses and to professional or high-net-worth individuals in eligible jurisdictions. Retail borrowing is switched on one jurisdiction at a time, once the consumer-credit requirements there have been confirmed. The current positions are on the [Jurisdictions](/compliance/jurisdictions.md) page. ## What you need * A wallet on Robinhood Chain. Robinhood Wallet works, as does any EVM wallet, including 4337 and 7702 smart accounts. * Stock Tokens to put up as collateral. * A completed eligibility check, which places the attestation on your wallet. ## From request to funded loan 1. **Connect.** The dashboard reads your Stock Token balances as soon as the wallet is connected. 2. **Choose collateral.** For each token you see its tier, the current oracle price, whether its market is open, how much you can borrow at each LTV, and an indicative rate taken from the live book. 3. **Post the request.** The form asks for Principal, Max APR (%), Term and Fill deadline (hours). Max APR is the highest rate you will accept. Terms are 7, 14, 30 or 90 days. The fill deadline is the request's launch window: the time lenders have to fill it before it lapses. Beside the form, the dashboard shows the health factor the loan would open with. 4. **Review the fills.** The relayer matches standing and targeted offers to your request as they come in. Nothing is committed until you have seen the full proposed syndicate, the blended APR and every slice in it. 5. **Originate.** One transaction moves your collateral into escrow and pays out the USDG. With a smart account it is one user operation, with approve and borrow batched together. The origination fee is deducted from the principal. 6. **Watch the position.** Your dashboard shows debt, interest accrued, health factor, maturity date and the oracle status of the collateral. ## While the loan is open | Action | What happens | | -------------- | ------------------------------------------------------------------------------------------ | | Add collateral | Health factor rises. | | Repay part | Principal falls pro rata across every slice, and the health factor rises. | | Repay in full | Principal and interest are cleared and the collateral is released, all in one transaction. | | Refinance | A rising-rate auction opens before maturity so the loan can roll into a new term. | Repayment is open at any time after the 3-day minimum interest period. ## Alerts Register one or more alert channels and you will be told when: * your health factor drops below 1.10, * the underlying market is about to close and your closed-market health factor is near the threshold, * maturity is approaching, * lenders have accepted a rollover auction you opened, * the oracle for your collateral is paused for a corporate action, or the market itself is paused. ## When the term ends Maturity is followed by a 24 hour grace window. If the loan has been neither repaid nor refinanced when that window closes, it defaults and the collateral goes to a Dutch auction. After the debt and the penalty are covered, whatever is left comes back to you. Details are in [Maturity and refinancing](/protocol/maturity-and-refinancing.md). ## When collateral loses value If your health factor falls below 1.0, anyone may open a Dutch auction on your collateral. The price starts above the oracle price and declines towards a floor. Proceeds cover the debt and a 3% penalty; the remainder is returned to you. At weekends the liquidation LTV is lower, because the closed-market haircut applies, and the auction floor is bounded. Size your buffer for the closed market, not the open one. See [Health factor and liquidation](/protocol/health-and-liquidation.md). ## Fees * Origination: 0.25% of principal. * Refinance: 0.10% of principal. * Liquidation penalty: 3% of debt, and only if you are liquidated. ## Practical notes * Borrow well under the tier maximum. The gap between maximum LTV and liquidation LTV is your margin for error. * Check your closed-market health factor on Friday, not Monday. * Keep some USDG aside for a partial repayment. It is often cheaper than topping up collateral. * Dividends and splits arrive through the token's own multiplier. Nothing is needed from you. --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. 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