# FAQ

<details>

<summary>How much collateral should I supply?</summary>

The value of required collateral depends on the following parameters:

* **CF** (Collateral Factor) parameter of the asset you supply (see [asset-parameters](https://puzzle-lend.gitbook.io/guidebook/protocol-details/asset-parameters "mention"))
* **LT** (Liquidation Threshold) parameter of the asset you borrow
* **MAC** (Minimum Account Health when borrowing) = 1%&#x20;

For example, if you provide PUZZLE with CF = 40% and want to borrow 1000 XTN which has LT = 95%, you should provide PUZZLE worth:\
1000 / ((1 – MAC) × CF × LT) = 1000 / (0.99 × 0.4 × 0.95) ≈ 2658 XTN.

</details>

<details>

<summary>How much interest will I owe?</summary>

The interested rate owed on borrowed loans is not constant, it is calculated dynamically depending on the supply and demand ratio of the asset.&#x20;

For more information see the[borrow-apy](https://puzzle-lend.gitbook.io/guidebook/borrowers-guide/borrow-apy "mention") section.

</details>

<details>

<summary>When do I have to pay the loan back?</summary>

There is no specific date by which a loan must be repaid. However, your debt increases each block. The longer you use the loan, the greater the interest you will owe.

</details>

<details>

<summary>What if my collateral becomes insufficient?</summary>

Although you provide sufficient collateral at the time of the borrowing, the situation may change:

* Supplied collateral may decline in value
* Borrowed assets may increase in value
* Your debt position may grow due to accrued interest

If the value of your collateral dips below a threshold, your loan will be partially liquidated and a liquidation penalty will be automatically deducted from your collateral.&#x20;

Ensure your Account Health stays high by repaying the loan or supply more collateral if needed to avoid the liquidation.

</details>


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