# Step-by-Step Tutorial: How to Borrow Assets on Juris Protocol

***

## Borrowing Assets

Once you have established a [Borrowing Account](https://www.google.com/search?q=./link-to-previous-page) and pledged collateral, you can draw liquidity against it. Juris Protocol uses a variable interest model where rates are determined by pool utilization.

***

### Step-by-Step Tutorial

| **Step**            | **Action**                                         | **Why It Matters**                                             | **On-Screen Cues**                                |
| ------------------- | -------------------------------------------------- | -------------------------------------------------------------- | ------------------------------------------------- |
| 1. Access Dashboard | Click Borrowing in the main navigation bar.        | View all active accounts and their current health.             | Account cards showing Collateral & Health Factor. |
| 2. Select Account   | Choose an account and click Manage to expand.      | Keeps your borrowing strategies and risks isolated.            | Expanded card with "Open borrowing position."     |
| 3. Initiate Borrow  | Click Open borrowing position.                     | Launches the configuration panel for your loan.                | Asset selection modal.                            |
| 4. Configure        | Select asset and enter amount (or use the slider). | Crucial: Review the projected Health Factor and interest rate. | Health Factor gauge (Green/Yellow/Red).           |
| 5. Confirm          | Click Confirm borrow and sign the transaction.     | Funds are transferred to your wallet; interest begins.         | Wallet prompt; "Borrow position opened" alert.    |

***

### Monitoring Your Health Factor

The Health Factor is a numerical representation of the safety of your loan relative to your collateral.

* Above 1.5 (Safe): Recommended for most users to weather standard market volatility.
* 1.1 to 1.5 (Moderate): Requires active monitoring.
* 1.0 (Liquidation Risk): If your Health Factor hits 1.0, the protocol may liquidate your collateral to repay the debt.

***

### Pro Tips & Best Practices

> \[!CAUTION]
>
> Liquidation Risk: Digital asset prices can be volatile. Always maintain a significant buffer in your Health Factor to prevent the loss of your collateral during flash crashes.

* **Stable Balance for Fees:** Keep a small amount of $USDC in your Stable Balance to auto-cover interest payments and avoid manual maintenance.
* **Variable Rates:** Interest rates adjust based on demand. If a pool becomes highly utilized, your borrowing APR will rise. Check your "Details" tab periodically.
* **Partial Repayments:** You don't have to close the whole loan at once. If your Health Factor is dropping, make a partial repayment to instantly improve your account's safety.
* **Diversified Baskets:** Using a mix of stablecoins and volatile assets as collateral within one account can help prevent the Health Factor from swinging wildly.

***