# Borrow

## Borrow with Spine

Spine enables users to borrow stablecoin against approved collateral through curated fixed-rate credit books. Each credit book represents an isolated market with its own maturity, fixed rate, and capacity.&#x20;

Borrowers open a position by locking eligible collateral and selecting a credit book that matches their planned maturity and interest rate. Borrowers must monitor their positions to ensure collateral remains above required LTV thresholds to avoid liquidation if its value declines.

Watch our video to see how simple it is to borrow through Spine: [**BORROWING GUIDE.**](https://spine-protocol.gitbook.io/spine-finance/product-video-guides/fixed-rate-borrow)&#x20;

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## How much can you borrow?

The amount you can borrow on Spine credit books depends on the assets you supply as collateral and the asset you wish to borrow. Spine Protocol employs an algorithm to determine your borrowing limit.

## What is liquidation?

Liquidation occurs when the value of your collateral falls below the required LTVs threshold for each credit book. This threshold ensures that there is sufficient collateral to cover the borrowed amount. If your collateral's value decreases enough to cross this threshold, liquidation is triggered.

During liquidation, a portion of your collateral is sold at a discount to its market value to a liquidator. The liquidator uses the proceeds from this sale to repay your debt on your behalf. This process ensures that the loans remain adequately collateralized and protects lenders from potential losses due to the borrower's inability to repay the loan.

## Liquidation threshold

The rate differs between different collateral assets but the range is between 0.7 - 0.95 between the amount borrowed and posted collateral. To avoid liquidation on Spine credit books, you can either repay part or all of your loan or deposit more collateral. These actions maintain the required collateral ratio and protect your assets.
