📜Borrow Policy

The U2U Borrow Policy outlines the rules and guidelines governing the borrowing feature on the xMoon platform. By utilizing this feature, users agree to comply with the terms specified in this policy.

Accepted Collateral

The xMoon platform accepts only U2U tokens as collateral for borrowing $XMOON tokens. Users must provide U2U tokens as collateral to initiate the borrowing process.

Collateralization Ratio

  • Borrowers must collateralize their U2U tokens at a ratio of 115%.

  • This means the collateral's value must be at least 115% of the borrowed $XMOON token value.

  • A significant decline in the collateral's value may lead to liquidation.

Interest Rate

  • The borrowing of $XMOON tokens against U2U collateral comes with a 0% interest rate.

  • No additional charges are applied to borrowed amounts.

Borrowing Limits

  • Borrowing limits are determined based on the collateral value and the required collateralization ratio.

  • Users must monitor their borrowing capacity and adjust their collateral as necessary to avoid liquidation risks.

Liquidation

  • If the collateralization ratio drops below the required threshold, xMoon reserves the right to liquidate the collateral to recover the borrowed amount.

  • Users will receive prior notifications, offering them an opportunity to rectify the situation before liquidation occurs.

Repayment

  • Borrowed $XMOON tokens must be repaid within the specified period.

  • Users are responsible for managing their loans and ensuring timely repayment to avoid potential consequences, such as liquidation.

Policy Amendments

  • The U2U Borrow Policy is subject to change.

  • Any modifications will take effect immediately upon being posted on the xMoon platform.

  • Users should review this policy regularly to stay informed about updates.

Risks and Responsibilities

  • Users acknowledge the inherent risks involved in borrowing activities.

  • It is essential for users to carefully evaluate their financial circumstances before borrowing against U2U tokens.

  • Borrowers accept full responsibility for their actions and any resulting outcomes.

Contact Information

For questions or concerns regarding the U2U Borrow Policy, please contact us at dev.xmoon@gmail.com.

This policy ensures transparency and security, enabling users to confidently engage in borrowing within the xMoon ecosystem.

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