# BORROWING

Borrowers supply tokens to a secure, multi-asset **UBKCollateralVault**, in order to unlock fixed-rate credit from any registered **UBKLiquidityPool**.

**Note: Borrower collateral cannot be rehypothecated.**\ <br>

<figure><img src="/files/iMvuUWaqZ3W2RndRJlui" alt=""><figcaption></figcaption></figure>

When a borrower takes their first loan, they lock the ongoing pool interest rate for the term and open a **pool-specific loan position**.

If a borrower takes additional liquidity during the loan term, their position becomes the **weighted average** of each borrow event.

<figure><img src="/files/pGKw3P7iHUBZZAwnud7m" alt=""><figcaption></figcaption></figure>

**Example**

User opens a **$100 loan at 3%** due in 12 months.

Six months later the user borrows an additional **$100 at 5%**.

The borrower’s position becomes the weighted average of the two borrow events:

**$200 loan at 4%** still due at the original maturity date.

Note:

* Collateral is held centrally, but unlocks liquidity across the entire venue.
* Within risk limits, borrowers may access credit from any combination of **UBKLiquidityPool** instances.

**IMPORTANT:**

* **Loans registered in a UBKLiquidityPool become due at maturity, and liquidatable shortly after.**
* **Borrowers may opt-in to rollovers to clear interest via Auto-Deleveraging at maturity, and extend their position.**
* **Borrowers MUST stay overcollateralized at all points of a loan lifecycle, or risk liquidation regardless of rollover opt-in.**
* **See 'ROLLOVERS', 'RISK' and 'LIQUIDATIONS' sections below.**


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