Credit Lines
Access decentralized credit by borrowing sipUSD against your vault deposits and market positions.
Overview
Siprifi's credit system allows you to unlock liquidity from your deposited assets without selling them. Borrow sipUSD (SPC) and use it across DeFi while maintaining exposure to your positions.
Effective Borrowing Power (EBP)
Your EBP determines how much you can borrow. It's calculated based on:
- Value of tokens deposited in the Vault
- Risk weights assigned to each asset
- Current market prices from oracles
Different assets have different risk weights. Stablecoins typically have higher LTV ratios than volatile assets.
Health Factor
Your health factor indicates the safety of your position:
| Health Factor | Status | Action Required |
|---|---|---|
| > 1.5 | Safe (Green) | No action needed |
| 1.2 - 1.5 | Warning (Yellow) | Consider repaying |
| 1.0 - 1.2 | Danger (Red) | Repay immediately |
| < 1.0 | Liquidatable | Position at risk |
The health factor is calculated as: EBP / Total Debt
Borrowing sipUSD
- Deposit collateral into the Siprifi Vault
- Navigate to the Credit tab
- Enter the amount of sipUSD to mint
- Preview your new health factor
- Confirm the transaction
Risk: If your health factor drops below 1.0, your position becomes liquidatable. Monitor your positions regularly.
Repaying Debt
To improve your health factor or close your position:
- Ensure you have sipUSD in your wallet
- Approve sipUSD spending if needed
- Enter the amount to repay
- Confirm the transaction
About sipUSD (SPC)
sipUSD is Siprifi's credit unit. Unlike stablecoins, its value is tied to the protocol's Net Asset Value (NAV):
- Price = NAV / Total Supply
- When the protocol is well-collateralized, price ≈ $1.00
- Price fluctuates based on protocol health