Borrow Policy

Eligibility

To participate in borrowing XLORD Tokens by using ETH Tokens as collateral, users must meet these requirements:

a. Have a verified account on the XLords platform.

b. Own enough ETH Tokens to provide as collateral.

c. Follow all applicable legal regulations and the specific terms of use for XLords.

Collateral Requirements

a. ETH Tokens are the exclusive form of collateral accepted for borrowing XLORD Tokens.

b. A collateralization ratio of 100% is required, meaning the collateral must be valued at least 100% of the XLORD Token borrowing amount.

c. The platform retains the right to adjust the collateralization ratio based on market trends.

Borrowing Limits

a. The maximum amount that can be borrowed is determined by the value of the ETH Token collateral and the prevailing collateralization ratio.

b. Borrowing over the established limit is not permitted.

Interest Rate

a. Borrowing XLORD Tokens against ETH Tokens incurs a 0% interest rate.

b. The interest rate is subject to change at the discretion of the platform.

Repayment

a. The borrowed amount must be repaid in XLORD Tokens.

b. Borrowers can repay the borrowed tokens at any time, offering flexibility in loan management.

Liquidation

a. The collateralization ratio is a key metric that gauges the balance between collateral assets and borrowed assets.

b. Should market fluctuations bring the collateralization ratio to a point where the collateral's value equals or drops below the value of the borrowed assets, the platform is authorized to liquidate the collateral at 85% of the market price to recover the outstanding loan amount.

Risk Disclosure

a. It's crucial for borrowers to understand the risks involved in borrowing against ETH Token collateral, especially considering the potential impact of market volatility on both the borrowed XLORD Tokens and the collateral.

Regulatory Compliance

a. Borrowers must ensure their borrowing activities are in full compliance with all relevant laws and regulations.

Platform Discretion

a. XLords reserves the right to amend, update, or cancel the Borrow Policy at any moment, with or without notice.

Engaging in the borrowing process signifies that users have read, understood, and agreed to the terms of this updated Borrow Policy. Non-adherence to this policy may lead to the cessation or termination of borrowing privileges on the XLords platform.

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