> For the complete documentation index, see [llms.txt](https://aqualoan.gitbook.io/aqualoan/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://aqualoan.gitbook.io/aqualoan/protocol/borrow/how-to-borrow.md).

# How to Borrow

Unlock your capital's full potential

Before borrowing, an asset must be [deposited](/aqualoan/protocol/deposit.md) to be utilized as collateral.

After providing collateral, visit the **Assets to Borrow** section to view the borrowing availability and yields.

Click on the Borrow button you would like to borrow. On the **modal dialog**, click borrow.

Set the desired borrow amount based on your available collateral balance, and continue to confirm the transaction. Note that the more you select to borrow, the greater the impact on your overall [Health Factor](/aqualoan/protocol/borrow/health-factor.md) (more on this below).

<figure><img src="https://3618470613-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FCF67kULtVMQSebgQh51R%2Fuploads%2FzEKwbMkOWVgsc2dpZ7Iu%2Fimage.png?alt=media&amp;token=de5f4711-0c38-4632-b448-16e263410475" alt=""><figcaption></figcaption></figure>

<figure><img src="https://3618470613-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FCF67kULtVMQSebgQh51R%2Fuploads%2F7fXE1lI0VkYXVw9rqRuA%2Fimage.png?alt=media&amp;token=e2ea5345-7766-4866-bde9-43f9ea90312e" alt=""><figcaption></figcaption></figure>

## Borrowing Eligibility <a href="#borrowing-eligibility" id="borrowing-eligibility"></a>

The maximum amount available to borrow depends on the value of the collateral deposited, as well as the available liquidity for the asset. You won't be able to borrow an asset if there is not enough liquidity or if your [Health Factor](/aqualoan/protocol/borrow/health-factor.md) is too low.

The **Loan-to-Value (LTV) ratio** represents the maximum borrowing power of specific collateral. For example, if collateral such as USDC has a maximum LTV of 80%, the user can borrow up to $0.80 worth of DAI in the principal currency for every $1 of DAI in collateral. This information can be found on any asset on the **Markets** page.