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Borrowing & Repaying
Learn how to borrow assets against your collateral on Vertex.
Vertex enables collateralized borrowing of assets against the value of trader portfolios – allowing borrowed assets to be withdrawn from the Vertex smart contracts. This function is integrated directly into the protocol via an integrated Money Market (similar to other popular borrowing protocols).
Unique 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 instead with borrowing enabled. As a result traders can withdraw borrowed assets.
Note: Withdrawing borrowed assets 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- Available – Amount that can be withdrawn without borrowing.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 necessary.
- 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If successful, the assets will be withdrawn into your wallet and are ready to be deployed elsewhere.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.
On Vertex, trading is simple and efficient. An outstanding trading experience also requires enhanced risk management, which is why Vertex introduces tools like Health Check.
The Repay feature allows traders to easily repay borrows on Vertex via depositing or converting another asset, taking the guesswork out of the equation.
In this tutorial, you will learn how to complete a Repay on Vertex.
Users can always manually repay by:
- Using the Deposit pop-up to deposit the asset.
- Buying the asset on one of Vertex’s spot markets.
However, the Repay Modal makes it easy to repay a borrow and takes the manual guesswork out of it.
Tip – If you are ever uncertain what a specific term means on the Vertex interface, try hovering over it to see the tooltip.
- To repay a borrow, press the
Repaybutton and initiate a pop-up. - Repay buttons can be found:
- In the Control Centre.
- On the borrows and balances table (click on the three-dot dropdown).
- There are two options for Repaying:
- Deposit = Deposit the asset currently borrowed from your wallet into Vertex.
- Convert = Buy back the asset borrowed on a Vertex spot market.
- Both serve to clear or reduce a borrow balance
- After selecting deposit or convert, you'll need to pic
- Click on the Asset drop-down and select the borrow to repay.
- If repaying non-USDC borrow, users must buy that asset back using USDC.
- Amount Borrowing = Amount of the selected asset currently borrowed.
- Available = The amount available to deposit if depositing from a wallet OR the amount of an asset available to sell (without leverage).
- Balance = Current balance of a selected asset. Negative balances represent borrowing.
- Enter the amount to repay.
- Press on Max Repay to repay the total borrow (or as much as possible given account equity etc.).
NOTE — If using the max repayment via the convert option, you may end up with a small positive balance of the asset you are repaying. This is because the convert (trade) may execute at a better price than the one quoted.
- Press on Deposit & Repay or Convert & Repay.
- Confirm the transaction in your wallet.
Last modified 1mo ago