How Magma works

Each market has a collateral factor (the max LTV you can borrow against it) and a liquidation bonus (the discount liquidators get for closing an unhealthy position). Supply an asset to earn a share of the interest borrowers pay. Borrow against your combined supplied collateral — Magma is cross-margin, so all your supplied assets count toward a single health factor.

Health factor

Your health factor = weighted value of collateral / value of debt. Below 1.0, anyone can liquidate up to 50% of your largest debt (the close factor). Liquidators pay the debt and receive seized collateral plus a 10% bonus, funded by the protocol's reserve.

Using it

Open the Lend page. Supply collateral, toggle assets as "usable collateral," then borrow. Repay any time. Monitor the health factor on your position card — if it drops below 1.3, top up or repay.

• ▸Borrow caps per market limit exposure.
• ▸Bad debt is first covered by protocol reserves; excess socializes to suppliers.
• ▸Liquidation bonus: 10% (configurable per market).