Borrowing

Borrowers on Alloc8 initiate the borrowing process by depositing the asset they would like to borrow, which serves as collateral to access leverage of up to 6x using our lending pools(AllocPools). These borrowed assets can then be utilized across vetted Protocols on different chains available as vaults on our platform.

There are risks involved with borrowing on Alloc8, including the possibility of losing funds and facing liquidation. If liquidation occurs, both borrowed funds and deposited collateral are at risk.

The Borrower assets are maintained on alloc8 using SAFE(credit accounts), These are user-owned safe Accounts on top of which alloc8 adds a Liquidation Module and a Credit Guard.