The loan system mainly works on you exchanging MATIC, WETH or BNB for ARTH at 0% interest. Two modes play a crucial role in getting a loan.
Normal mode: In the normal mode the collateral ratio must be at least 110%
Recovery mode: In recovery mode, the collateral ratio must be at least 150% when opening a loan.
You can view all the opened loans on the overview page and in case you want to open a new loan you can click on the take loan button.
Step 1: If you want to take a loan; click on the Open a Loan button. If you have already opened any loans before and want to check the status of those loans you can check it below in the opened loans list.
You need to click on the open loan to start the first step towards opening a loan.
Step 2: Once you click on the Open a Loan button you will find a drop-down section that will let you choose from different assets.
You need to input an amount that is going to be the collateral amount from your end.
Step 3: After you select the asset; you need to input an amount that is going to be the collateral amount from your end.
NOTE: In normal mode, the amount you enter has to be amounting to a collateral ratio of at least 110% or more. It is advised to keep it well above 150% so that you can avoid liquidation under recovery mode.
Step 4: Once you have entered the amount you will see the minimum ARTH that you will receive. It also tells you the total debt amount which is inclusive of the borrowing fee and liquidation reserve.
Step 5: Click on the confirm loan button to open your loan.
You need to click on the 'take loan' button to confirm the opening of the loan.
Step 6: Once you have got the successful transaction confirmation, you proceed with the next step which is - complete transaction.
Successful confirmation of the opening of the loan
Step 7: Once you click on complete transaction you will get another metamask confirmation. Once confirmed, it completes your open a loan process.
Step 8: To check whether your loan has been opened or not; you can check it in the 'Your loans' section. If it is not visible there, you are advised to click on the refresh button once and check for the same.