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Borrow (Overview)

Growmax Borrow is a structured borrowing product that allows users to access liquidity by pledging digital assets as collateral under a strictly over-collateralised and rule-based framework.

Borrow on Growmax is intentionally designed to be simple, conservative, and predictable. It is not intended for leveraged trading, yield amplification, or speculative strategies. Instead, it serves users who want to unlock liquidity while retaining exposure to their underlying digital assets.

All borrowing activity on Growmax operates under predefined parameters, enforced automatically without discretionary intervention.

Purpose of Borrow Products

The primary objectives of Growmax Borrow are to allow users to:

  • Access liquidity without selling long-term digital asset holdings
  • Maintain ownership exposure while meeting short-term liquidity needs
  • Understand borrowing risk clearly before initiating a loan
  • Operate within transparent, enforceable risk limits

Borrow products are designed to behave consistently across market conditions rather than dynamically adapting to volatility.

Network & Token Standard

Growmax Borrow operates exclusively on BNB Chain.

  • All borrow positions must be created on BNB Chain
  • Cross-chain borrowing is not supported
  • Collateral must conform to the BEP-20 token standard

This single-chain, single-standard approach reduces operational complexity, pricing inconsistencies, and execution risk.

Supported Collateral Assets

Only selected, liquid digital assets are accepted as collateral, and only in BEP-20 form.

Supported collateral assets include:

  • BTC (BEP-20)
  • ETH (BEP-20)
  • SOL (BEP-20)
  • BNB (native / BEP-20)

No other assets, wrapped standards, or networks are supported.

This restriction ensures:

  • Reliable valuation
  • Consistent monitoring
  • Efficient liquidation execution

Over-Collateralised Borrowing Model

All Growmax Borrow positions are over-collateralised by design.

This means:

  • The value of collateral must exceed the borrowed amount
  • Borrowing capacity is limited by predefined LTV thresholds
  • Collateral value is monitored continuously

Over-collateralisation is central to Growmax's risk framework and is enforced automatically.

Participation Mechanics

Borrow participation is entirely user-initiated.

The typical flow is as follows:

  1. User connects a supported wallet
  2. User deposits eligible BEP-20 collateral on BNB Chain
  3. Borrowing capacity is calculated based on collateral value
  4. User reviews and confirms borrowing terms
  5. Loan is initiated upon wallet confirmation

Growmax cannot initiate or modify borrow positions without explicit user approval.

Custody During Borrowing

During an active borrow position:

  • Collateral assets are held under controlled custody
  • Custody exists solely to secure the outstanding loan
  • Legal ownership of collateral remains with the user
  • Collateral is released once the loan is repaid in accordance with product terms

Risk Controls & Enforcement

Borrow risk is managed through automated, rule-based controls, including:

  • Continuous collateral valuation
  • Predefined margin call thresholds
  • Automatic liquidation enforcement

There are no manual overrides, delays, or discretionary exceptions.

This approach ensures:

  • Equal treatment of all users
  • Predictable enforcement
  • Reduced systemic risk

Separation from Earn Products

Borrow products operate independently from Earn products.

  • Borrow collateral is not used for Earn activities
  • Earn assets are not exposed to Borrow risk
  • Asset pools are segregated by product

This separation protects users from cross-product risk exposure.

Suitable User Profile

Growmax Borrow is suitable for users who:

  • Hold long-term digital assets
  • Require temporary liquidity
  • Prefer conservative borrowing structures
  • Understand collateral-based risk and liquidation mechanisms

It is not designed for high-frequency trading or aggressive leverage strategies.

Risk Considerations

Borrowing against digital assets involves risk, including:

  • Collateral price volatility
  • Margin calls and forced liquidation
  • Blockchain and operational risk

Growmax does not guarantee collateral protection beyond the documented rules and thresholds.

Positioning Summary

Growmax Borrow is positioned as a liquidity access tool, not a leverage engine.

Its design emphasises:

  • Simplicity over complexity
  • Discipline over optimisation
  • Rules over discretion

Users are strongly encouraged to review collateral, LTV, and liquidation documentation before initiating a borrow position.