🔄Borrow & Repay
Learn how to borrow against your margin and manage your position.
Last updated
Learn how to borrow against your margin and manage your position.
Last updated
Vertex's integrated money market facilities:
Automatic borrowing for the trading of spot markets.
The ability to borrow and withdraw assets from the DEX.
This tutorial will focus on the later. If you want to learn more about automatic borrowing when trading spot, please refer to the Spot Trading Tutorial.
The exchange enables collateralized borrowing of assets against the value of trader portfolios – allowing borrowed assets to be withdrawn from the smart contracts.
This function is made possible via the integrated money market.
Unique to Vertex is the ability to borrow against both deposited collateral and open perpetual profits.
To borrow and withdraw, users will need to initiate the borrow pop-up. This will look similar to the withdrawal one but with borrowing enabled by default. Unlike the withdraw pop-up, the amount of the asset a trader can withdraw is based on their margin and not available balance.
Withdrawing borrowed assets increases margin usage and risk.
-> Start the borrowing process by clicking on any Borrow button across the app.
-> Alternatively, click on Withdraw and toggle borrowing ON.
-> The borrow pop-up will appear.
-> Select the asset you wish to borrow. If you clicked on a specific balance or market to initiate the borrow this will come pre-selected.
-> Enter the amount you wish to borrow. The max borrow is based on your account's ability to borrow and withdraw that asset while maintaining margin requirements.
-> After entering the amount you can review the summary.
-> Click the Borrow and Withdraw button if everything looks good.
-> Sign the transaction (if you have One-Click Trading ON you won't need to).
Borrow balances will be displayed in balances tables using a - symbol.
For example: If Joe is borrowing 10 wETH then Joe would see -10 wETH in the balances table.
You can view your borrow balances by navigating to Portfolio, the tables below trading charts, and on the borrow/lend page.
Repaying is the act of reducing one's borrow balance.
For example: If Joe repaid 5 of his 10 wETH borrow is balance would go from -10 wETH -> -5 wETH.
Borrowers have 2 options when repaying balances:
Deposit the asset.
Buy the asset on the exchange.
Borrowers can always do both repayment options manually using the Deposit button or by trading the spot market, such as wETH-USDC.
However, the exchange's repay feature makes it easier for borrowers to quickly repay balances via both options.
-> Click on Repay button found on the balances table for your borrow or in the Control Centre by click on your wallet.
-> A Repay pop-up will open.
-> You have two options:
Deposit = Deposit the asset to repay your borrowing balance.
Convert = Buy the asset by swapping for another.
-> Select the asset balance you want to repay.
-> You will see the amount you are borrowing.
-> If using the convert method: select the asset you want to sell.
-> Enter the amount you wish to repay or use the % shortcut buttons below.
You do not need to repay the entire borrow.
-> Review the summary.
-> Click the Repay button if everything looks good.
-> Sign the transaction to confirm the repay (if you have One-Click Trading ON you won't need to).
If Using the Convert Method: The amount needed to sell is an estimate on the current market price. You might end up with a positive balance in the asset you are repaying since the trade executed at a better price.
