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

# Example of Borrowing

![](/files/Y7HznjLy81UTLpQXwkKe)

Following the earlier example, John now wants to **borrow CRO** instead of redeeming his USDC:

1. John uses his 5,000 USDC as collateral.
2. With CRO's Collateral Factor of 75%, the maximum he can borrow is 3,750 USDC worth of CRO.
   * At the current exchange rate of 0.15 USDC per 1 CRO, this equals 25,000 CRO.
3. However, John chooses to be cautious and borrows only 12,500 CRO, keeping his collateralization ratio at 50%.
4. Assuming a 12% annual borrowing APY and constant USDC/CRO exchange rate, after 3 months, the interest adds up to:
   * 12,500 CRO × (12% ÷ 4) = 375 CRO
5. Total repayment = 375 + 12,500 = 12,875 CRO

**Important:** 

If CRO’s price increases during the loan period, the value of John’s debt rises. If this causes his collateralization ratio to exceed 75%, a liquidation event may occur—part of his loan will be repaid by selling some of his collateral to bring the ratio back within limits. 


---

# Agent Instructions
This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com.

## Querying This Documentation
If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question.

Perform an HTTP GET request on the current page URL with the `ask` query parameter, and the optional `goal` query parameter:

```
GET https://tectonic.gitbook.io/docs/introduction/borrowing/example-of-borrowing.md?ask=<question>&goal=<endgoal>
```

`ask` is the immediate question: it should be specific, self-contained, and written in natural language.
`goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal.

The response will contain a direct answer to the question and relevant excerpts and sources from the documentation.

Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.