PredMart › Documentation › Borrowing

Borrowing

Scope: This page covers PredMart's borrow & lend product on Polygon — a separate product from leveraged trading. If you want to trade with leverage, start with How Positions Work.

Already holding Polymarket shares? You can use them as collateral and borrow USDC against them — without selling a single share.

How it works

  1. Deposit shares — Move your Polymarket outcome shares (YES or NO) into your own non-custodial vault as collateral. They stay yours.
  2. Borrow USDC — Take out up to 80% of the shares' current value (80% LTV). The USDC lands in your wallet; spend it or redeploy it anywhere.
  3. Repay anytime — There is no fixed term. Repay part or all of the loan whenever you like; interest accrues only while you owe.
  4. Withdraw — Once the loan is repaid, withdraw your shares.

Interest

Borrowing costs a utilization-based rate — the more of the pool is lent out, the higher the APR, starting around 10%. Interest accrues continuously onto your debt. The live rate is shown before you borrow.

Health factor and liquidation

Your loan's safety is measured by a health factor: collateral value × the 85% liquidation threshold ÷ your debt. It falls as your shares' price falls or as interest grows your debt. If it drops below 1.0, the position is liquidated: all collateral is seized and sold on Polymarket, the proceeds repay the debt plus a 5% liquidation fee, and anything left stays with the lending pool. You receive nothing back — watch the health factor and repay early to stay safe.

You can never owe more than your collateral

Borrowing is non-recourse. If your market resolves against your outcome, the shares go to zero and your collateral is gone — but any remaining debt is written off. The protocol never pursues your wallet or other assets. Your maximum loss is the collateral you deposited.

When your market resolves

If your outcome wins, the shares redeem at $1 each — more than enough to repay the loan and keep the difference. If it loses, the collateral is worthless and the debt is written off as above.