# Borrow

### 1. Is there a handling fee for borrowing?

A: Lenen does not charge fees for deposits, withdrawals, loans, and repayments. The fee you pay is collected on the chain as a gas fee. (Lenen is currently only deployed on the Vision chain, please ensure that there is enough VS in the wallet as a gas fee)\


### 2. What if the borrower does not repay the loan?

A: All loans are secured by mortgage assets. In addition to market fluctuations that may trigger liquidation, in the case of non-repayment, the accumulation of interest will cause the borrower's debt to reach the limit and trigger liquidation.\


### 3. Do I need collateral for the loan? What is the maximum loan rate?

Answer: Yes. Each currency used as collateral has its own maximum borrowing rate.

### 4. What is my loan limit?

Answer: Borrowable amount = ∑ collateral value × maximum mortgage rate of the collateral - loaned value - loan interest

The higher the value of your collateral, the higher the amount you can borrow.

### 5. How is the interest calculated on the loan?

1\. After the user lends a certain currency, the interest will be calculated according to the real-time lending annualized rate (APR) of the currency (when the usage rate changes, the loaned annualized rate will change) and at the end When repaying the currency, it will be returned together.

2\. Interest is calculated based on the currency that is lent out.

3\. During the outstanding period, the interest generated will lower the liquidation point. That is, the value of the mortgage position is lower than the liquidation point, which will trigger liquidation.

### 6. How long can the loan be borrowed and how to repay it?

1\. Borrowing period: no upper limit, only need to ensure that the mortgage position will not reach the liquidation point.

2\. Loan repayment: partial repayment or full repayment.

3\. When repaying the loan, repayment interest shall be added.

### 7. What is the function of Lenen deposit borrowing USDT?

1\. For depositors, Lenen is a stable financial tool, putting idle USDT in it to earn interest. The depositor's income (deposit interest) comes from the loan interest paid by the borrower to lend USDT.

2\. Go short.

Shorting simply means profiting from market declines. As opposed to long positions, users can borrow USDT by mortgaging short-term assets. When the mortgage assets fall, they can repay with less USDT, thereby earning USDT.

3\. Go long

Users can borrow USDT by mortgaging long-term assets, and use the loaned USDT to buy long-term assets. When the long-term assets rise, they can earn more USDT for repayment, thereby earning USDT. Of course, this kind of long operation is essentially leverage. Although the rewards are huge, the hidden risks also increase.

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