> For the complete documentation index, see [llms.txt](https://docs.luminite.app/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.luminite.app/tutorials/lend-and-borrow-with-kinetic-market.md).

# Lend & Borrow with Kinetic Market

## **About** **Kinetic Market:**

<mark style="color:$info;">Kinetic Market lets users supply (lend) assets to earn APY and borrow against supplied collateral. Now you can simply lend and borrow with Kinetic via Luminite Wallet.</mark>&#x20;

### How to Lend (Supply) using Kinetic Market

1\. Open the Earn section

* Navigate to 'Earn' from the main menu on\
  <https://www.luminite.app/earn>&#x20;

Locate Kinetic Market and click 'Explore'.\
<https://www.luminite.app/kinetic>

<figure><img src="/files/PnDcQUdXeWNm4gW297bU" alt=""><figcaption></figcaption></figure>

2\. Choose asset

* In the Dashboard section, find the asset you want to supply&#x20;
* Click Supply on the asset’s card.

<figure><img src="/files/bU45MtMXkZHM3ieZcFJJ" alt=""><figcaption></figcaption></figure>

3\. Enter supply amount

* Type the amount you wish to supply.
* The interface will display: Supply APY, Distribution APY, and Collateral Factor. Review these carefully.

<figure><img src="/files/gh5azuJglvWj8tIoH96O" alt=""><figcaption></figcaption></figure>

4\. Enable as collateral

* Toggle Enable as collateral ON if you plan to borrow against this supply. If you do not want it used as collateral, leave it OFF.

Note: Enabling as collateral increases your borrowing power but also exposes that supplied asset to liquidation risk if your borrowing position becomes undercollateralized.

<figure><img src="/files/3EXogA1RaOlrbXB01msm" alt=""><figcaption></figcaption></figure>

5\. Supply

* Click Supply.
* Wait for the transaction to be mined/confirmed.

<figure><img src="/files/hwrpPp0w3ZRoUPV8KO6U" alt=""><figcaption></figcaption></figure>

6\. Complete & Track Your Rewards

A success notification will appear in the top‑right corner once the transaction completes.

* Your supplied balance will now show in the Dashboard&#x20;
* Rewards update in real-time
* Remember to claim your rewards

**Tips & checks**

* If the supplied asset requires an approval transaction, you may see an initial Approve step before the Supply — confirm that first.
* Check the Collateral Factor (CF) to understand how much you can borrow against this asset (e.g., CF 75% means 75% loan-to-value for that asset).<br>

### How to Borrow using Kinetic Market

Prerequisite: You must have supplied assets with '**Enable as collateral'** switched ON.

1\. Go to[ https://www.luminite.app/kinetic](https://www.luminite.app/kinetic) <br>

2\. Choose asset to borrow

* On the Dashboard, select the asset you want to borrow.

Click Borrow on that asset’s card.

<figure><img src="/files/dAM6Dpr4EYWwctOLKejD" alt=""><figcaption></figcaption></figure>

3\. Enter borrow amount

* Enter the amount you want to borrow. Note the UI shows your available borrow limit based on your collateral.

Note: The maximum borrow amount equals the borrowing power provided by your collateral - it may be lower than your supplied amount depending on collateral factors and existing borrows.

<figure><img src="/files/fZ2UsK6sZxG4TsqEGDaV" alt=""><figcaption></figcaption></figure>

4\. Click 'Borrow' and confirm the transaction in your wallet.

Wait for the transaction to process.<br>

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

5\. Complete the Transaction

A success notification will appear in the top‑right corner once the borrow transaction completes.

* Your borrowed balance and outstanding debt will be visible in the Dashboard.<br>

**Notes & warnings**

* Borrowing increases liquidation risk. Monitor your Health Factor regularly.
* Interest accrues on borrowed assets - check the Borrow APY