Learn how to borrow assets against your collateral on Vertex.
Vertex enables collateralized borrowing of assets against the value of trader portfolios – enabling borrowed assets to be withdrawn from Vertex smart contracts. This function is integrated directly into the protocol via an integrated Money Market (similar to other popular borrowing protocols).
Uniquely to Vertex is the ability to borrow against both deposited collateral and open perpetual profits. Therefore, the Borrow pop-up is similar to “withdraw” but with borrowing enabled – allowing traders to withdraw borrowed assets (note- - this will also increase leverage).
In this tutorial, you will learn how to borrow assets on Vertex.
- Users can initiate a borrow by pressing any Borrow button found throughout the app:
- On the Asset and Balances tables in Portfolio or Spot trading, click on the three-dot drop-down to borrow that asset.
- In the Control Centre, under “Other Quick Actions.”
- Eventually, a pop-up on a dedicated Borrow/Lend page.
- Click on the asset drop-down and select the asset to borrow.
- Clicking on borrow in an asset row will automatically populate that asset.
- Enter the amount to borrow.
- Available – Amount that can be withdrawn without borrowing.
- Borrowing - the amount you are currently or will end up borrowing.
- Note: if the amount entered doesn’t exceed what is Available, then borrowing won’t be needed.
- Press on Borrow & Withdraw.
- Confirm the transaction in your wallet.
If successful, the assets will be withdrawn into your wallet and are ready to be deployed elsewhere.
Make sure to manage risk accordingly.