> For the complete documentation index, see [llms.txt](https://docs.pokefi.xyz/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.pokefi.xyz/guides/borrowing-against-a-card.md). # Borrowing Against a Card This guide walks through requesting a loan against a vaulted card. Before starting, make sure your card is in the vault and tokenized. See [Vaulting a Card](/guides/vaulting-a-card.md) if it is not. *** ## Prerequisites * A vaulted, tokenized card with status `vaulted` * A connected Solana wallet * A verified profile (KYC), required before a lender can fund the loan * A small amount of SOL for transaction fees *** ## Step 1: Select the Card 1. Connect your wallet and open the **Vault** section. 2. Choose the card you want to borrow against. Only cards with status `vaulted` are eligible. A card already backing a live loan cannot back another. 3. Review its **Reference Price**, the valuation your borrowing range is based on. *** ## Step 2: Set Your Loan Terms Click **Borrow** on the card. You set three things: ### Principal The amount of USDC you want to borrow. PokeFi shows the allowed range based on the Reference Price and the loan-to-value cap for that collateral tier. You can request any amount up to the cap. Borrowing well below the cap leaves a larger buffer, which tends to attract lenders faster and gives you a stronger position to repay and reclaim the card. ### Term The loan duration in days. Interest is calculated over the full term. The maturity date is set to the funding date plus this term. ### Maximum APR The highest annual interest rate you are willing to pay. A lender can fund your loan at that rate or lower, never higher. Setting a realistic maximum, informed by comparable open requests, helps your loan get funded. As you adjust these, the panel shows the implied loan-to-value and the maximum total repayment you could owe (principal plus interest at your maximum APR over the term). *** ## Step 3: Publish the Request 1. Review the summary: card, principal, term, maximum APR, resulting LTV, and maximum total repayment. 2. Click **Publish Request**. 3. Sign the transaction in your wallet. On confirmation: * The loan request is published to the marketplace and the public explorer with status `open`. * The card's title token moves into the loan escrow, and the card's status becomes `escrowed`. * A `requested` event is recorded in the loan's public history. {% hint style="info" %} Publishing a request escrows your card immediately, even before a lender funds it. This guarantees the collateral is locked and ready. You can cancel an unfunded request at any time to release the card. {% endhint %} *** ## Step 4: Wait for Funding Your request now sits in the marketplace where lenders can review and fund it. Each lender sees the collateral, its grade and population, the Reference Price, your requested LTV, term, and maximum APR. When a lender funds the request: * They agree to an APR at or below your maximum. * The USDC is released to your wallet. * The **total repayment** and the **maturity date** are fixed and will not change. * The loan's status becomes `funded`. You receive the USDC directly. There is no separate claim step. *** ## Step 5: Repay to Reclaim Your Card Repay principal plus interest in USDC any time before maturity. The total owed is fixed and shown on your loan page. 1. Open the loan in your dashboard. 2. Click **Repay**. You can repay in full or make a partial repayment. 3. Sign the transaction. Each repayment reduces your outstanding balance. Once cumulative repayments cover the total: * The loan is marked `repaid`. * The title token is released from escrow back to you. * The card returns to `vaulted` status, and you can redeem it, keep it vaulted, or borrow against it again. *** ## Cancelling an Unfunded Request If your request has not been funded yet, you can cancel it: 1. Open the loan in your dashboard. 2. Click **Cancel Request**. 3. Sign the transaction. The title token is released from escrow, the card returns to `vaulted`, and a `cancelled` event is recorded. Once a loan is funded, it can no longer be cancelled. *** ## If You Default If maturity passes without full repayment, the lender can claim the default. The title token transfers to them, and you lose the card. You keep the USDC you borrowed, and there is no further claim against you beyond the collateral. See [How a Loan Works](/core-concepts/loan-lifecycle.md). {% hint style="warning" %} Track your maturity date. Repaying even one day late exposes you to default and the permanent loss of your card. There are no automatic extensions during beta. {% endhint %} *** ## Related * [Vaulting a Card](/guides/vaulting-a-card.md): get a card into the vault first * [Valuation and LTV](/core-concepts/valuation-and-ltv.md): understand your borrowing range * [How a Loan Works](/core-concepts/loan-lifecycle.md): the full loan lifecycle --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter, and the optional `goal` query parameter: ``` GET https://docs.pokefi.xyz/guides/borrowing-against-a-card.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.