# Borrowing Assets **Important Note**: * If you supplied an asset in the Main Pool, you can only borrow assets within this pool. * Similarly, if you supplied an asset in the Veno Pool, you can only borrow assets within this pool. * The same rule applies to the DeFi Pool. Click [here](https://tectonic.gitbook.io/docs/protocol/isolated-pools) to lean about isolated pools.

1\) First, you need supply an asset on Tectonic. The tutorial for supplying an asset can be found [here](https://tectonic.gitbook.io/docs/guides/supplying-assets) 2\) Once supplied, you will need to enable the asset for use as collateral. You can do this either in the [Dashboard](https://app.tectonic.finance/dashboard/) page or within the individual asset markets page (for example, the individual asset markets page for USDC can be found [here](https://app.tectonic.finance/markets/main/usdc/)). You will need to **confirm** the "Use as collateral" transaction in your wallet.

3\) Then, head to the [Markets](https://app.tectonic.finance/markets/) page and select the asset that you intend to borrow. You will be taken to that asset's individual markets page

4\) Click on the “Borrow” button and indicate the amount you intend to borrow. See the below example for TONIC.

5\) Confirm your transaction in your wallet

6\) A pop-up will appear to indicate a successful transaction

7\) Upon successful completion, you can then view your supply and borrow balances within the [Dashboard ](https://app.tectonic.finance/dashboard/)Page

The dashboard provides key information such as the supply balance, borrow balance, Net APY, Current Loan-To-Value (LTV), available borrowing power, and the list of supplied and borrowed assets

## **Commonly asked questions**

Q) How do I check the health of my loan to make sure it remains below liquidation levels?

**A:** The best way to determine the "health" of your loan is to look at the lava bar (shown in the screenshot below). As a rule of thumb, we recommend that you maintain your lava bar below 50%. This loan-to-value ratio could help better protect your position from liquidation during volatile market periods. ![](https://986628987-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F1Qp0nwxyx5F5286sTIOk%2Fuploads%2FgYjV0AlJQyhkiNFdWlb4%2Fimage.png?alt=media\&token=5ff4c1c7-aa63-4991-a3d7-47437fc79b18)

Q) What does "Exceeds Borrow Limit" mean?

**A:** If you attempt to borrow an amount that takes your lava bar **beyond 90%**, you will exceed our specified borrow limit and not be allowed to complete the transaction. ![](https://986628987-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F1Qp0nwxyx5F5286sTIOk%2Fuploads%2F2HSOaIk4Atvr1Axo3UYa%2FScreenshot%202023-05-31%20at%202.54.19%20PM.png?alt=media\&token=644d14a9-4090-41eb-8d28-20dc88354979)

Q) What is Net Borrow APY / Distribution APY?

**A:** Net Borrow APY = Fees paid by user for borrowing asset - Distribution APY * If Net Borrow APY is negative, Distribution APY > Fees paid for borrowing asset. This essentially means the **user is being paid to borrow the asset**. Distribution APY = TONIC rewards paid to user * if Distribution APY = 0%; there are no TONIC rewards paid out for that market

Q) What is "Borrow balance"?

**A:** Borrow balance is the total amount of loans you have taken out on Tectonic, displayed in USD terms