> For the complete documentation index, see [llms.txt](https://docs.curvance.com/app/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.curvance.com/app/protocol-overview/liquidity-markets/borrowing.md).

# Borrowing

## **Borrowing Limits**

A user’s borrowing capacity in Curvance is determined by two key factors: the collateralization ratio and the liquidity available in the isolated market.

**1. Collateralization Ratio**

The collateralization ratio defines the maximum borrowing threshold for each asset, reflecting its specific risk profile. Assets with lower risk have higher collateralization ratios. For example, an asset with a 75% collateralization ratio allows a user to borrow up to $0.75 for every $1.00 of the asset deposited as collateral.

Curvance calculates each user’s borrowing limit as a blended collateralization ratio across various assets within an isolated market. This blended Loan-to-Value (LTV) ratio represents the maximum amount users can borrow based on the combined collateral they’ve supplied.

*Example:*\
*A user deposits $100 of supported ETH-based collateral into an isolated market. If that asset has a 75% collateralization ratio, the user can borrow up to $75 against it, assuming enough liquidity is available in the market.*

**2. Available Liquidity**

A user’s ability to borrow also depends on the pool’s liquidity. If the requested loan amount exceeds the available liquidity in a given pool, borrowing may not be possible. 

*Example:*\
*A user deposits $1000 of cbBTC into a market with $50 in available USDC liquidity on the lending side. With a collateralization ratio of 90%, the user can borrow up to $900 in assets against their wrapped bitcoin. Still, with only $50 in available liquidity, the user can only borrow up to 50 USDC even though the Protocol Risk Engine would support a larger debt position.*

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## **Repaying Loans and Collateral Redemption**

To close a debt position, users must repay the borrowed amount and any accrued interest costs in the same asset initially borrowed. This can be done via the Curvance front end or directly through smart contracts. After repayment, users can redeem their collateral and underlying assets by returning the cTokens received at the time of the initial deposit.

{% hint style="warning" %}
Redeeming collateral is subject to the 20 minute cooldown.
{% endhint %}

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## Minimum Loan Size

* Each market enforces a minimum active loan size (USD, typically $10–$100).
* New borrows/increases must keep total debt ≥ the minimum; otherwise blocked.
* Partial repayments are allowed, but you can’t leave debt below the minimum. Repay to zero instead.
* Liquidations may reduce debt below the minimum; afterward, borrowers must either fully repay or bring the position back ≥ the minimum before any further partial actions.

**Purpose:** prevent dust loans and ensure liquidations remain economically viable.