Borrowing

• Assets can be used as collateral in any VMEX managed tranche or permissionless tranche that enables that specific asset as collateral. All assets are fully isolated to the tranche they are deposited in.

• When users borrow against their collateral, they are issued non-transferable interest-bearing debt tokens.

• These tokens are minted when a user takes out a borrow and burned when the borrow is repaid.

• Each asset will be given a risk score and assigned asset specific risk parameters (such as LTV, liquidation penalty, etc.).