> ## Documentation Index
> Fetch the complete documentation index at: https://docs.creda.finance/llms.txt
> Use this file to discover all available pages before exploring further.

# Lending and Borrowing

> Understanding the core mechanics of Creda Finance's lending protocol

Creda Finance matches suppliers who earn interest with borrowers who post collateral. Rates adjust with supply and demand, and every loan is over‑collateralized to protect the system.

## Supplying

* Deposit assets to earn variable interest (compounds automatically)
* Enable as collateral if you plan to borrow
* Withdraw anytime, subject to pool liquidity

## Borrowing

* Borrow against enabled collateral within each asset’s LTV limits
* Maintain a safe health factor to avoid liquidation
* Interest on borrows accrues continuously

Key formulas:

```
Max Borrow = Collateral Value × LTV
Health Factor = (Collateral Value × Liquidation Threshold) / Total Debt
```

## Rates In Brief

* Utilization‑based: higher utilization → higher borrow and supply rates
* Piecewise curves: gentle increases at low utilization; steep at high
* Reserve factor: small portion of interest goes to the protocol

See Interest Rates for examples and deeper context.

## Practical Tips

* Keep buffers: avoid borrowing to the maximum
* Watch utilization when planning large withdrawals
* Use EMode for correlated assets; use Isolation Mode for riskier collateral

Start small, learn the flow, then increase size as you get comfortable.