Borrow

• AST is a volatile asset. Its price can move sharply in either direction at any time.
• Borrowing against collateral creates liquidation risk: if your health factor falls below 1.0, your collateral can be liquidated at a penalty.
• Market prices may move faster than you can react. Maintain a comfortable safety buffer.
• Oracle failure, staleness, or manipulation can affect protocol operations, including liquidations.
• Available liquidity changes constantly. Borrowing and lender withdrawals depend on liquidity that is not currently lent out, supplying liquidity does not guarantee immediate withdrawals.
• Smart contracts can contain bugs or vulnerabilities, even when audited.
• Interest rates are variable. Yield for lenders is never guaranteed.

Before borrowing, make sure you understand how loan-to-value (LTV) and the health factor work: LTV is your debt relative to your collateral value, and the health factor measures the distance to the liquidation threshold. A health factor below 1.0 makes the position eligible for liquidation.