TECHNICAL FAQ

Will Orbiter One charge any fees when making deposits or borrowing?

No, there will be no deposit fee. The Reserve Factor determines how much borrow interest is routed to a given asset's reserves. In the event of borrower default or liquidation malfunction, the reserves protect the lenders.

What if I take out my initial deposit or do not repay my loan?

You will be liquidated if your health reaches 1.0 (or your Borrow Limit reaches 100%). This occurs when the value of your collateral decreases relative to the amount of your loan.

Do I lose all of my collateral if I get liquidated?

No, an asset's Close Factor determines liquidations. When the Close Factor is 50%, the maximum amount of borrow that can be repaid in a single liquidation is 50%. To avoid liquidation events, keep your borrow health up by monitoring and repaying your loans when necessary.

Are borrowing rates variable or fixed?

Lenders and borrowers have variable interest rates based on the Interest Rate Model.

Is it possible to pay back what I have borrowed with the assets I deposited as collateral?

No.