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 * Welcome to Ithil
 * Introduction
 * Protocol Overview
   * How it works
   * Lending
   * Borrowing
   * Services
   * Liquidations
   * Governance
 * Types of Services
 * Other
 * FAQ
 * Legal Disclamer
 * Terms of Service

On this page


BORROWING

Access the web3 space with more capital than the one at your disposal

--------------------------------------------------------------------------------

Thanks to Ithil's financial services, anyone can fully engage and experience the
web3 space; the seamless workflow allows the user to enter into any service with
a few clicks, letting Ithil handle all the intricate procedures required to do
it. An internal system of undercollateralised loans allows for a true capital
boost, in which funds are borrowed from Ithil's liquidity vault to be invested,
and the outcome of the specific service is locked in the service contract. In
order for a user to access a service, a margin must be posted into the service
smart contract; this is required to cover potential losses the vault may incur
in the event of an unfavourable market movement.


TAKE LOAN

The opening of a position is done in three steps:

 * The user posts some margin into the service and sets the desired investment
   parameters
 * The service borrows funds from the vault, if the desired amount to be
   invested is higher than the margin posted
 * The service performs all the internal and external calls to invest
   (eventually borrowed) assets on other protocols while resulting assets (LP
   tokens, NFTs, ...) stay locked within the service contract itself.

Since the amount used might be higher than the user's initial capital, the
investment can be leveraged: in this way, the assets obtained will have a much
higher value than if the user directly buys them from an external protocol.

Add margin
Yes

No

User
Is amount > margin?
Take a loan
from the Vault
Service
Invest


REPAY

The closure of a position is likewise done in three steps:

 * The assets are exchanged internally or through an external protocol, to
   obtain the initial token used for the investment
 * The service repays the loan taken from the vault, plus interest rates and
   fees
 * The remaining part of the payoff is given back to the trader.

Close position
Yes
No
User
Is PnL > margin?
Take profit
Incur loss

A side note, the profit and loss or PnL is computed as follows

PnL=amount−loan−feesPnL = amount - loan - feesPnL=amount−loan−fees
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Last updated on 6/15/2023
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 * Take Loan
 * Repay

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