INIT Capital
  • Protocol Overview
    • Introduction
    • Liquidity Hook
      • Benefits to DApps
      • Benefits to INIT Users
    • INIT Growth Loop
  • Lending
    • Assets List
    • How Deposit Works
    • Lending APR
    • LP Tokens as Collateral
    • Lending Cap
  • Borrowing
    • Assets List
    • Borrow Cap
    • Health Factor
      • Blast Parameters
      • Mantle Parameters
    • Minimal Liquidation
    • Interest Rate Model
    • Flash Borrow
    • Auto E-Mode
    • Debt Ceiling
  • Key Features
    • Flash Borrow
    • Multi-Silo Positions
    • LP Tokens as Collateral
    • Yield-Bearing Tokens as Collateral
  • For dApps
    • Building Liquidity Hook
    • Developer Docs
  • Additional Information
    • Official Links
    • Contract Address
      • Blast
      • Mantle
    • Oracle
    • Audits
    • Media Kit
    • Terms of Use
Powered by GitBook
On this page

Was this helpful?

  1. Borrowing

Borrow Cap

The Borrow Cap represents the maximum token amount that users can borrow from each INIT lending pool. It is mostly determined by the circulating supply of tokens within the chain.

Why is this important?

It serves to prevent situations where borrowed tokens cannot be repaid, often resulting from liquidation. This is because liquidators would need to exchange the borrowed tokens for collateral tokens.

PreviousAssets ListNextHealth Factor

Last updated 1 year ago

Was this helpful?