> For the complete documentation index, see [llms.txt](https://docs.stormbit.finance/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.stormbit.finance/product/borrow.md).

# Borrow

Borrow USDC against BTC or ETH at 0% APR. Your loan settles on the option expiry you choose — no liquidation along the way. The price of the loan is a cap on your upside, set when the loan opens.

1. Post BTC or ETH as collateral
2. See your quote: loan amount + cap level (the call strike). APR is 0%
3. Receive USDC. Your collateral is collared until maturity — floor bought, cap sold
4. Repay by the deadline. Get your collateral back

***

{% hint style="info" %}
**The cap is the cost.** There is no interest. At origination a call is sold on your collateral — if the price finishes above the cap at maturity, that upside settles to the desk. Below the cap, every dollar of your collateral's move is yours. You know the exact trade-off before you sign.
{% endhint %}

***

**What drives your cap level:**

| Factor                 | Effect                                                             |
| ---------------------- | ------------------------------------------------------------------ |
| **LTV**                | Borrow less against your collateral → higher cap, more upside kept |
| **Term**               | Shorter term → cap closer to spot but reset sooner                 |
| **Implied volatility** | Richer vol → the call sells for more → better loan terms           |

***

**No liquidation** — Once funded, your position cannot be liquidated during the term, regardless of price. The floor is a put bought at origination, not a margin threshold.

**Repay** — Pay back the principal by the deadline. Collateral comes back (upside above the cap, if any, settles to the desk).

**Default** — Miss the deadline and the put plus your collateral settle the loan; remaining collateral is sold via Dutch auction in [Deals](/product/deals.md). Set a calendar reminder.

***

| Asset | Settlement                                                    |
| ----- | ------------------------------------------------------------- |
| WBTC  | On listed option expiries — granular, from days to months out |
| WETH  | On listed option expiries — granular, from days to months out |


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