# borrow

participants which use handle.fi borrow mechanism can mint a range of **fxTokens** through the use of an over collateralised debt position. the individual collateralized debt positions are called vaults. 

users lock up collateral to an [fxToken vault](https://docs.handle.fi/the-platform/vaults) and may issue a range of handle.fi's **fxToken** stablecoins to their address. initially accepted collateral will be ETH however over time additional collateral will be added; including a range of ERC20 tokens and later, the platform's own $FOREX token.

{% hint style="info" %}
collateral ratio or c-Ratio is a measure of the amount of collateral that is required to borrow a certain amount of money. it is calculated by dividing the total amount of collateral by the total amount of outstanding loans.
{% endhint %}

**initial proposed fxTokens that can be minted are:**

* fxUSD - United States Dollar.
* fxAUD - Australian Dollar.
* fxCNY - Renminbi.
* fxEUR - Eurodollar.
* FxJPY - Japanese Yen.
* fxKRW - Korean Won.
* fxCHF - Swiss Franc.
* fxSGD - Singapore Dollar.

**a protocol fee of 0.0% is charged to mint fxTokens.**

<figure><img src="/files/bMrRZZ8zmgfPPXUuuEAG" alt=""><figcaption></figcaption></figure>

there are some important metrics to be aware of when electing to open up a vault. they are:

* **minimum collateral ratio (c-Ratio/ CR):** in order to ensure each fxToken of debt is appropriately backed the amount of debt issued needs to be managed relative to the collateral posted. the **minimum c-ratio in order to mint fxTokens is 200%.** more information about min c-ratio and how liquidations work can be found [here](https://docs.handle.fi/the-platform/liquidations).&#x20;
* **interest rate:** the rate is currently set at 0.40% for all fxTokens. the rate is variable and determined by the DAO.&#x20;
* **liquidation fee:** when a c-Ratio falls below the [liquidation](https://docs.handle.fi/the-platform/liquidations) threshold then a fee is charged out of the vault issuer's collateral. the fee is currently 10% and is determined by the DAO with 50% going to fxKeeper pool & 50% to the protocol.

[rewards ](https://docs.handle.fi/rewards/rewards)will accrue to fxToken minters, but only for users that maintain a c-Ratio greater than their vault's required minimum c-Ratio.

{% hint style="info" %}
for a complete tutorial on how to make a loan see this [guide](https://docs.handle.fi/how-to-guides/use-key-functions/mint)
{% endhint %}


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