> For the complete documentation index, see [llms.txt](https://docs.x.place/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.x.place/xplace/credit.md).

# Credit

### Overview

Credit allows you to access a USDC balance backed by the assets you've deposited in Collateral — without selling a single token. No credit checks. No waiting.

Your deposits act as collateral. XPlace gives you a credit line against them instantly.

***

### How It Works

#### 1. Deposit Collateral

Deposit supported assets and automatically unlock Credit Power based on each asset's Loan-to-Value (LTV) rate.

#### 2. Access Your Credit — Two Ways

**Credit Mode** Switch your XPlace Card to Credit mode and spend directly against your credit line — no manual steps, no borrowing flow. Just tap and spend.

**Borrow** Prefer to hold USDC in your balance? Manually draw down any amount up to your available credit line, directly to your wallet.

#### 3. Repay Any Time

No fixed repayment schedule. Repay in full or in part whenever you choose.\
\
LTV Rates

| Asset   | LTV |
| ------- | --- |
| USDT    | 80% |
| cbBTC   | 70% |
| wETH    | 70% |
| SOL     | 65% |
| jitoSOL | 50% |

*Example: Deposit $10,000 in SOL → unlock $6,500 in credit, while your SOL keeps earning yield.*

***

### Borrow APR

Borrow rates are variable and sourced directly from Kamino Finance, reflecting real-time on-chain borrowing demand. Your current rate is always visible inside the app before you borrow.

***

### Health Factor

Your Health Factor reflects the safety of your position — the ratio of your collateral value to your outstanding credit, expressed as a percentage.

| Health Factor | Status                                               |
| ------------- | ---------------------------------------------------- |
| Above 50%     | Safe                                                 |
| Below 50%     | Medium risk — consider adding collateral or repaying |
| Below 20%     | High liquidation risk — immediate action recommended |

Monitor your Health Factor in the app at any time by switching to Credit mode, and tapping on the Borrowed section.

***

#### Risk & Liquidation

Your Collateral serve as collateral. If their market value drops significantly, a portion may be liquidated to maintain the health of your position.

To protect yourself:

* Monitor your Health Factor in the app
* Add more collateral or repay part of your balance if your LTV approaches the limit

***

### Key Facts

* Credit is issued in USDC only
* Two ways to access: Credit mode on your card, or manual borrow
* No fixed repayment dates — repay any time
* Collateral earns yield even while backing your credit line
* No credit checks or identity scoring


---

# 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:

```
GET https://docs.x.place/xplace/credit.md?ask=<question>
```

The question should be specific, self-contained, and written in natural language.
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.