> For the complete documentation index, see [llms.txt](https://xmud.gitbook.io/xmud-overview/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://xmud.gitbook.io/xmud-overview/economic-system/borrow.md).

# Borrow

The borrowing feature offers a unique opportunity for users to leverage their Ethereum (ETH) holdings as collateral to acquire xMUD tokens.

**Using ETH as Collateral:**The borrowing system allows users to use their Ethereum (ETH) holdings as collateral. This means that users can temporarily lock in a portion of their ETH assets to access xMUD tokens.

**Collateral Value Limit:**Users can borrow up to a maximum of 85% of the value of the ETH they provide as collateral. This ensures a responsible borrowing limit while allowing users to make the most of their existing assets.

**Receiving xMUD Tokens:** Once the ETH collateral is successfully deposited, users receive a corresponding amount of xMUD tokens in return. These tokens can be used within the XMUD.XYZ ecosystem for various purposes.

**Repayment with** xMUD **Tokens:**To retrieve the collateralized ETH, users are required to repay the borrowed xMUD tokens. This process essentially functions as a means of repayment. By using xMUD tokens, users can reclaim their original collateral.

The borrowing feature in XMUD.XYZ  opens up exciting opportunities for users to leverage their existing ETH holdings to access xMUD tokens. It's a way to make the most of your assets and actively participate in the XMUD.XYZ ecosystem. By utilizing this feature responsibly, users can unlock additional value and enhance their overall experience within the platform.<br>