Borrow Policy

The Borrowing Policy outlines the terms and conditions for using the borrowing feature on the xNinja platform. Users must adhere to these terms when using this feature

1. Collateral

INJ token is the only accepted collateral for borrowing XNJ tokens. The initial loan-to-value ratio (LTV) is set at 85%, calculated based on the USD value of the provided INJ collateral. Expect more collateral options soon, with a focus on Liquid staking tokens within the Injective network.

2. Interest Rate

The interest rate for borrowing XNJ tokens against INJ tokens is 0%. This rate is subject to change at the discretion of the platform. If there are any changes in the future, we will announce via our official social channels.

3. Borrowing Limits

We calculate your borrowing limit based on your INJ collateral value and the current collateralization ratio. We ensure that users cannot borrow more XNJ tokens than what's available for Ecosystem development.

4. Repayment

Users can repay borrowed XNJ tokens at any time, as long as their loan has not been liquidated. Upon repayment, users will receive back all the INJ tokens used as collateral, as long as they repay the exact amount of XNJ tokens borrowed.

5. Liquidation

In case market volatility affects the Loan-to-Value (LTV) ratio, causing the collateral's value to equal or drop below the borrowed assets' value, the platform reserves the right to liquidate the collateral to clear the debt.

6. Disclosure

Borrowers should carefully evaluate the risks of using their INJ token collateral for loans, as market fluctuations can affect the value of both borrowed XNJ tokens and the collateral itself. Users must comply with all legal and regulatory requirements for borrowing on this platform.

7. Authority of the xNinja

The platform reserves the authority to alter, revise, or discontinue its borrowing policy at its discretion, but will notify users in advance. Engaging in the borrowing feature signifies that users have reviewed, comprehended, and consented to comply with the terms of this Borrowing Policy. Non-adherence to these terms may lead to a halt or revocation of the user's borrowing capabilities on the platform.

8. Contact information

If you have any questions or concerns about this Borrow Policy, please contact us at [e-mail]