> ## Documentation Index
> Fetch the complete documentation index at: https://docs-staging.centuari.finance/llms.txt
> Use this file to discover all available pages before exploring further.

# Borrow at Fixed Rate

> Detailed guide to fixed-rate borrowing mechanics

## Overview

This guide covers the mechanics of borrowing on Centuari, from placing orders to managing active loans.

## Placing a Borrow Order

### Easy Mode

<Steps>
  <Step title="Ensure Collateral">
    Deposit or confirm existing collateral
  </Step>

  <Step title="Enter Amount">
    Specify borrow amount (within limit)
  </Step>

  <Step title="Review">
    See optimized rate and terms
  </Step>

  <Step title="Confirm">
    One-click to borrow
  </Step>
</Steps>

### Advanced Mode

<Steps>
  <Step title="Ensure Collateral">
    Deposit or confirm existing collateral
  </Step>

  <Step title="Enter Amount">
    Specify borrow amount
  </Step>

  <Step title="Set Max Rate">
    Enter maximum rate you'll accept

    <Info>
      Lower rate = longer wait. Check order book for current supply.
    </Info>
  </Step>

  <Step title="Choose Maturity">
    Select from available maturity dates (1st of each month)
  </Step>

  <Step title="Configure Auto-Refinance">
    Enable/disable automatic loan renewal
  </Step>

  <Step title="Confirm">
    Submit order to book
  </Step>
</Steps>

## Order Matching

Your borrow order matches with lend orders:

```
Your order: Borrow 10,000 USDC at max 8.5% maturing June 1

Order Book (Lend orders):
  1. 5,000 USDC at 9.0% ← Won't match (above your max)
  2. 8,000 USDC at 8.5% ← Matches (at your limit)
  3. 10,000 USDC at 8.0% ← Matches (below your limit)

Result: You borrow at weighted average rate
```

## Borrowing Power

Your maximum borrow depends on collateral:

```
Borrowing Power = Σ (Collateral Value × LTV)

Example:
  5 ETH @ $2,000 × 80% LTV = $8,000
  + 10,000 USDC × 90% LTV = $9,000
  Total Borrowing Power = $17,000
```

### Current Limits

| Collateral | LTV | \$10,000 Value Enables |
| ---------- | --- | ---------------------- |
| ETH        | 80% | \$8,000 borrow         |
| wBTC       | 75% | \$7,500 borrow         |
| USDC       | 90% | \$9,000 borrow         |
| Stocks     | 65% | \$6,500 borrow         |
| Gold       | 70% | \$7,000 borrow         |

## Interest Calculation

Fixed interest calculated at loan creation:

```
Interest = Principal × Rate × Time

Example: $10,000 at 8% maturing June 1 (~90 days)
Interest = $10,000 × 0.08 × (90/365) = $197.26
Total Due at Maturity = $10,197.26
```

Interest compounds if you auto-refinance (added to principal).

## Managing Your Loan

### Position Dashboard

View all loan details:

* Principal and rate
* Accrued interest
* Maturity date
* Health factor
* Auto-refinance status

### Adding Collateral

Increase your safety margin:

<Steps>
  <Step title="Access Position">
    Go to loan in dashboard
  </Step>

  <Step title="Click 'Add Collateral'">
    Select asset and amount
  </Step>

  <Step title="Confirm">
    Collateral added, health factor improves
  </Step>
</Steps>

### Withdrawing Collateral

If health factor allows:

<Steps>
  <Step title="Access Position">
    Go to loan in dashboard
  </Step>

  <Step title="Click 'Withdraw Collateral'">
    See max withdrawable amount
  </Step>

  <Step title="Enter Amount">
    Specify amount (must maintain health factor >1)
  </Step>

  <Step title="Confirm">
    Collateral sent to wallet
  </Step>
</Steps>

## Repayment

### Full Repayment

<Steps>
  <Step title="Access Position">
    Go to loan in dashboard
  </Step>

  <Step title="Click 'Repay'">
    See total amount due
  </Step>

  <Step title="Confirm">
    Loan closed, collateral unlocked
  </Step>
</Steps>

### Partial Repayment

Reduce loan balance:

```
Original Loan: $10,000
Partial Repay: $3,000
New Balance: $7,000

Benefits:
- Lower interest going forward
- Improved health factor
- More withdrawable collateral
```

### Early Repayment

No penalty for repaying before maturity. You pay:

* Principal
* Accrued interest to date

## Cross-Chain Borrowing

Borrow from any supported chain:

<Steps>
  <Step title="Select Source Chain">
    Where your collateral is
  </Step>

  <Step title="Deposit Collateral">
    Collateral bridges to Arbitrum
  </Step>

  <Step title="Borrow">
    Place order on Arbitrum
  </Step>

  <Step title="Receive Funds">
    Choose destination chain for borrowed funds
  </Step>
</Steps>

## Interest Rate Comparison

Fixed rates may carry a small premium over current variable rates, but protect you from rate spikes that cause 80% of DeFi liquidations. [See why fixed rates matter](/overview/why-fixed-rate).

## FAQs

<AccordionGroup>
  <Accordion title="Why is fixed rate higher than current variable?">
    Fixed rate includes a premium for rate certainty. Lenders want compensation for committing to a rate. This premium protects you from spikes.
  </Accordion>

  <Accordion title="Can I extend my loan?">
    With auto-refinance, yes, automatically. Without, create a new loan and repay the old one.
  </Accordion>

  <Accordion title="What if I can't repay at maturity?">
    Enable auto-refinance to automatically extend. Otherwise, you have a grace period before liquidation.
  </Accordion>

  <Accordion title="Can I borrow different stablecoins?">
    Yes. You can borrow USDC, USDT, or DAI against your collateral.
  </Accordion>
</AccordionGroup>