> For the complete documentation index, see [llms.txt](https://docs-rade.rariti.io/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs-rade.rariti.io/product/borrowing.md). # Borrowing ## Over-Collateralized Interest Free Borrowing *Over-collateralized* loans are loans where the value of the collateral pledged is greater than the loan’s value. This means that the lender has a cushion of additional collateral to protect against potential losses in case the value of the collateral drops. RADE offers *over-collataralized* interest-free loans which have a minimum *Collateralization Ratio*(CR) of 150%. Instead of selling Ethereum to have liquid funds, you can use the protocol to lock up and pledge your Etheruem, and borrow against the collateral to withdraw RUD. All loan offered by RADE, are termed loans (which is in contrast to indeterminant loans offered by all the other traditional DeFi lending protocols). This means that the user can specify the payment terms and the loan term and repay the amount in installments. ## What is a Nest? A Nest represents a single loan account or a *collateralized debt position* (CDP) issued by the platform to a user who pledges a crypto asset to borrow funds from the liquidity pool. Each user can have more than one nest i.e. one user can borrow multiple times. Keep and eye on this space. More information will follow soon.