# How to Create a Loan

### Step 1: Connect Your Wallet

1. Open the app and click Connect Wallet.
2. Select the type of wallet you use. For example, if you're using Eternl Wallet, choose Eternl from the supported wallet options.
3. Confirm and connect your wallet to the platform to proceed.

### Step 2: Choose Token to Borrow

1. Once your wallet is connected, you will be directed to the loan creation screen.
2. Select the Token you wish to borrow from the available options.

### Step 3: Choose Collateral Token, Fixed-Rate, and Loan Duration

1. First, select the Collateral Token you want to use, which will serve as the asset backing your loan. If using ADA as collateral, the borrower will retain ADA staking rewards and voting rights.
2. Next, choose the Loan Duration from the available options: 7 days, 30 days, 60 days or 90 days
3. Based on your selected collateral and loan duration, choose the corresponding Fixed-Rate. The available fixed rates will vary depending on both the collateral and loan duration selected.

![](https://lh7-rt.googleusercontent.com/docsz/AD_4nXcRGA2WS0jGNGommtj2vleSVme9sSFnZgtgCLuATqPDRs0lOX63qT26hgH_sqY5JUYVHFGooBVxp6SKikxsKlL-uRLk7F4pmIQqfdJq2daOWXZjzMV1K6rQvExShsaprEnoDD3DIg?key=uUZN19F4shulBnjhlrulQA)

### Step 4: Enter amount to borrow

1. Enter the amount of the selected token that you wish to borrow. Ensure that the amount is within the liquiditiy.

![](https://lh7-rt.googleusercontent.com/docsz/AD_4nXchbtbTs3IdbQVDZ8PAcG7WcbqJadKLHQ-Nd7eHE886atpUclSj5cj5RdPOzU7PfBch8it7X2kSo46HUUK9ZuiG_jHkJELQ3MLyDyM3tB4X29h8k4ZhZKZyQIBLn1j3P8sVh2BNkA?key=uUZN19F4shulBnjhlrulQA)

### Step 5: Adjust Health Factor

1. Adjust the Health Factor, which reflects the ratio between your collateral and the loan amount. A higher health factor means less risk of liquidation.
2. The system automatically calculates the required collateral based on the HF you enter, so you cannot manually increase the collateral.

![](https://lh7-rt.googleusercontent.com/docsz/AD_4nXdCKs-0LBg-RKc5oOED_ZnzY3W2D4enpsnKTSx36oy6Yh7XJPE4EJHAKLRUVNMprWmvDXMJQR_nfZ1gqkd-OH9akTea2UlStsql3WuC13FSxTa0fkxiePFCLhERlqCMVZDFXO8N2A?key=uUZN19F4shulBnjhlrulQA)

### Step 6: Review Loan Summary

1. Once you have set all the parameters, you will see a summary of your loan details.
2. Review the information carefully, ensuring the loan amount, collateral, rate, and duration are correct.

### Step 7: Confirm and Sign

1. After reviewing your loan details, click Borrow.
2. Sign the transaction with your wallet to complete the loan creation process.

<img src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXenLZMH8vSQYpMhkyxsBapJeScTJ7nwdhtqkTbgWl6jfk80RZjVFlGP7yW_SU8uVOPWRz-Wz2WDguxxjJvX5DCkM_-avOgLM-k41c9-Q1dr0DzC5VfdHKNZsdeLDO0P9PzRWARg5Q?key=uUZN19F4shulBnjhlrulQA" alt="" data-size="original">

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