Kairos Cash provides isolated lending markets, that allow users to adjust their risk tolerance according to the collateral they decide to use.
Head over to Kairos Cash and click on BORROW.
The borrow section of the website displays a variety of ibTKNs (interest-bearing tokens) that can be used as collateral. Here is an example:
Across the top, you will see:
- COLLATERAL - These are the collateral items that you can use as collateral to borrow KASH.
- TOTAL KASH BORROWED - This shows the total KASH amount that users have borrowed.
- LEFT TO BORROW - This shows how much KASH is still available to be borrowed using this collateral.
- INTEREST - This is the annualized percentage of which your debt will grow each year.
- LIQUIDATION FEE - This is the discount a liquidator will get when liquidating a position that has been flagged for liquidation.
To borrow some KASH, simply click anywhere in the frame of the Collateral you want to use as collateral. We are going to use wsKRNO as an example.
After selecting your collateral, the BORROW/REPAY section will appear.
Let’s start with the 1st window and the two buttons (BORROW/REPAY) above.
These two buttons simply toggle the frame below to either borrow or repay KASH.
First, decide how much wsKRNO will be used as collateral. Then decide how much KASH will be borrowed by either typing in the numbers or using the percentage buttons below.
indicator will help warn you if you have put settings that are over risky.
The LIQUIDATION PRICE will display the collateral price at which we can be flagged for liquidations.
A liquidation price of $105.0419 means that if your ibTKN drops to or below $105.0419, your position is at risk of being liquidated. The liquidation price shown is always linked to the ibTKN which is used to borrow KASH. You can read more about liquidations in the dedicated section of this documentation. If you already have a position open, make sure to check the updated Total Liquidation price of that position in the MY OPEN POSITION box.
When you are ready, you can press the ADD COLLATERAL AND BORROW button. This will remove your ibTKNs and place them in the contract, and put the respective KASH tokens in your wallet.
Open positions can be managed in the same window as used to initially open a position. Here we can:
- Add collateral
- Borrow more KASH (assuming the maximum has not been met)
- Repay borrowed KASH
- Remove collateral (based on the user current debt level/collateral ratio)
On the right, you will see a frame called MY OPEN POSITION that contains dynamic information pertinent to this specific position. If you open a position using a different collateral, these numbers will adjust to that isolated market. If you adjust your position, these numbers will adjust accordingly. Please note that every time you edit your position (add more collateral or borrow more KASH) these numbers will adjust accordingly. The liquidation price stated here is the one that will decide when your total position gets liquidated or not.
The following will describe what each parameter details.
- Collateral deposited - This is the amount of collateral tokens you have supplied to this position.
- Collateral value - This is the total value in USD of all the collateral you have supplied to this position.
- KASH borrowed - This is the total value and quantity of KASH you have borrowed. The protocol always considers 1KASH to equal 1USD
- Liquidation price - This is the price of the collateral at which your position will be flagged for liquidation.
- KASH left to borrow - This is how much KASH you may still borrow before have reached your maximum allowance. To adjust this allowance you may either repay or add collateral.
- 1KASH = 1USD - This static number reminds the user that the protocol always considers 1KASH to equal 1USD.
- 1wsKRNO = 114.06KASH - This is the current price of our collateral (in this case wsKRNO). If this number equals the Liquidation price, you will be flagged for liquidation.
This bar gives the users a visual representation of the status of their current positions. Again, this bar is isolated and specific to the current collateral page opened.
Here are a few factors:
- A full bar means it is very safe, and an empty bar means this position is flagged for liquidation.
- If you supply collateral but don't borrow any KASHs your bar will be full.
NOTE: For collaterals that have stable coins as the underlying asset, the bar has been magnified by 10 to make for a better visual representation of the risk level.
This window simply displays the balances of these tokens in your currently connected wallet.
This window displays the static parameters of this collateral type. These numbers will remain constants unless governance elects to modify them.
- Maximum collateral ratio - Maximum collateral ratio represents the maximum amount of debt a user can borrow with a selected collateral token.
- Liquidation fee - This is the discount a liquidator gets when buying collateral flagged for liquidation.
- Borrow fee - This fee is added to your debt every time you borrow KASH. As an example, if you borrow 1000 KASHs, your debt will be increased to 1010 KASHs but you will actually receive 1000 KASH. These 10 KASHs will be distributed to sKREDIT holders.
- Interest - This is the annualized percent that your debt will increase each year. The interest fee is later distributed to sKREDIT holders.