Borrowing

How can I borrow on Hubble?

Here is a blog tutorial on How to Use Hubble.
You can borrow USDH on Hubble in a few short steps:
  1. 1.
    Navigate to the Hubble App and go to the Borrow section.
  2. 2.
    Choose how much collateral you would like to deposit from the different accepted tokens you own.
  3. 3.
    Choose how much USDH you would like to borrow against your collateral.
  4. 4.
    Click Borrow to open your position.

What is the minimum I can borrow?

The minimum borrowing amount is 200 USDH, which equates to $200. This also means that the minimum position in your account needs to be 200 USDH, and you cannot repay USDH to have a borrow of <200 USDH.
You may need to acquire a small amount of USDH from the market to repay your whole debt, since you owe a fee of 0.5% more than the amount you borrowed. If it seems like you cannot repay your loan in full, this might be the case.

What is the maximum I can borrow?

You can borrow as much USDH as you are able to provide collateral for. If you can provide $10 million worth of BTC, you can borrow 7.5 million USDH. There are no caps on borrowing.

What does collateral mean?

In short, collateral refers to any assets a borrower must provide as security for their USDH loan. Collateral ensures that a borrower will repay their loan.

Collateral Explained:

Collateral ratio (CR) is the dollar value of your deposited assets compared to the value of USDH you have borrowed. Another way to measure borrowing is loan-to-value (LTV).
For example, a 133% CR is equal to a 80% LTV. These ratios can fluctuate as the value of your assets changes in the market, so we encourage you to stay up to date with your position.
You can also increase your collateral ratio (lower your LTV), either by depositing more assets, or repaying parts of your USDH debt.
Collateral ratio mirrors loan-to-value. If your CR increases, your LTV decreases, which means you are safer from liquidation. Hubble prefers to monitor LTV, mainly because it gives you a better idea of how much you have borrowed vs. how much you are allowed to borrow.

What tokens does Hubble accept as collateral?

Collateral can be provided in SOL, ETH, BTC, FTT, RAY, SRM, and mSOL. Borrowers can provide any combination of these tokens as collateral. Our roadmap includes accepting a wider range of tokens in the near future.

Are there fees for borrowing?

Borrowing incurs a one-time 0.5% fee of your loan amount. For example, if you borrow 100 USDH, your repayable debt will be 100.5 USDH. There is no interest on borrowing.
You may need to acquire a small amount of USDH from the market to repay your loan + fee.

Is there a maximum loan duration?

No. Your loan can remain open for as long as you want, provided that your loan-to-value (LTV) remains below 80%.

What can be considered a ‘safe’ LTV ratio?

Different users will have different risk thresholds/opinions on what is a safe LTV. Make sure you understand how liquidations work on Hubble and how this fits into your approach to risk.