# Step-by-Step Tutorial: How to create Borrowing Account on Juris Protocol

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## Creating a Borrowing Account

Before you can draw liquidity, you must establish a borrowing account and pledge collateral. Juris Protocol allows you to create multiple, independent accounts to isolate risk and manage different strategies simultaneously.

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### Step-by-Step Setup

| **Step**             | **Action**                                            | **Why It Matters**                                       | **On-Screen Cues**                          |
| -------------------- | ----------------------------------------------------- | -------------------------------------------------------- | ------------------------------------------- |
| 1. Navigate          | Click Borrowing in the main navigation.               | Access the collateralized lending interface.             | "Borrowing" highlighted in the nav bar.     |
| 2. Open Account      | Click Open borrowing account and name it.             | Allows you to track different risk profiles separately.  | Name field (e.g., "Trading Fund").          |
| 3. Pledge Collateral | Click Add/Transfer Collateral and select your assets. | Secures your loans and establishes your borrowing power. | Asset selector and "Health Factor" preview. |
| 4. Activate          | Confirm the wallet transaction.                       | Finalizes the on-chain setup so you can begin borrowing. | Account card updates with active values.    |

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### Understanding Collateral Baskets

Juris Protocol features Collateral Baskets, allowing you to combine multiple different tokens (e.g., $LUNC and $USDC) into a single account.

* **Diversification:** Mixing stablecoins with volatile assets can help stabilize your Health Factor.
* **Isolation:** Each account's collateral is independent. A liquidation risk in one account does not affect your other accounts.

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### Pro Tips & Best Practices

> \[!TIP]
>
> Account Naming: Use functional titles like "Liquidity Reserve" or "Long-Term Hedge." This helps you quickly identify which account needs attention during market volatility.

* **Monitor Health Factor:** Always aim to keep your Health Factor significantly above 1.0. If it drops to 1.0, your collateral may be liquidated.
* **Gas Fees:** Every step (creating the account, pledging collateral, and borrowing) is an on-chain transaction requiring a small amount of $LUNC.
* **Start Small:** If you are new to DeFi borrowing, start with a small amount of collateral to see how the Health Factor moves as asset prices change.

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