> For the complete documentation index, see [llms.txt](https://bitprotocol.gitbook.io/bitprotocol/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://bitprotocol.gitbook.io/bitprotocol/v2-features/v2-frontend/borrow.md).

# Borrow

The **Borrow** page is where you open a new **trove** (CDP) by depositing collateral and minting BitUSD. Here you decide how much collateral to lock and how much BitUSD to borrow.

<figure><img src="https://4014914631-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FvvwuEJ5drMEbA7hiVKkJ%2Fuploads%2FrQmfIIRYpymDGy1y9YM0%2Fimage.png?alt=media&amp;token=e23b1dfa-982b-418a-ba96-676c382c30a9" alt=""><figcaption></figcaption></figure>

***

### 🪙 Step 1 – Select Your Collateral

At the top, you’ll see the asset you’re using:

* **Collateral Asset:** In this example, **ROSE**.
* **Balance:** Your available wallet balance.
* **Allowance:** Amount approved for the protocol to use. (You may need to increase allowance before borrowing).
* **Use Native Token:** Option to deposit the asset in its native form instead of a wrapped version.

***

### 💵 Step 2 – Choose Borrow Amount

* **Borrowing BitUSD:** Enter the amount of BitUSD you want to mint against your collateral.
* **Slider Bar:** Adjust the amount and instantly see your collateral ratio change.
  * The bar is **color-coded**:
    * Green = Safe
    * Orange = Risky
    * Red = Liquidation risk

***

### 📊 Step 3 – Review Position Details

On the right side, a **real-time summary** shows:

* **Debt:** Your borrowed BitUSD (e.g., 2.75 BitUSD).
* **Collateral Ratio:** Current health of your position (e.g., 155%).
* **Position Risk:** Safe / Caution / Danger depending on CR.

#### Detailed Summary:

* **Collateral Asset:** Value of your deposit (e.g., $44.4).
* **Borrowed BitUSD:** Range from current to new debt (e.g., 0 → 2.86 BitUSD).
* **Collateral Ratio:** Updated after borrowing (e.g., 155%).
* **Borrow Fee:** Current borrow fee in % (updates every 30s).
* **Liquidation Price:** Price of collateral at which your trove will be liquidated.
* **Your Total Debt:** The amount of BitUSD you’ll owe including fees (e.g., 2.76 BitUSD).

***

### ⚖️ Borrowing Fee

* A small **one-time fee** applied when minting new BitUSD.
* Shown live and updates automatically every 30 seconds.
* Example: **1% borrow fee → 2.75 BitUSD borrowed = 0.01 fee added**.

***

### 🚀 Step 4 – Deposit & Open Trove

Once you’re satisfied with your parameters:

1. Click **Deposit & open trove**.
2. Confirm the transaction in your wallet.
3. Your trove is created, collateral is locked, and BitUSD is minted directly into your wallet.