# Purinta > Documentation for Purinta This file contains all documentation content in a single document following the llmstxt.org standard. ## Borrowing Guide Borrowing on Purinta is the core user flow. You supply meme tokens as collateral and borrow stablecoins against them - keeping your full exposure to the meme token while unlocking liquidity. Each market is isolated, so positions in different markets are completely independent. ## Step by Step ### 1. Connect your wallet Visit the [Purinta app](https://app.purinta.xyz) and connect your EVM wallet. ### 2. Select a market On the Home page, you'll see the available markets. Click **Borrow** on the token you want to use as collateral (e.g. PEPE). Purinta prompts you to switch to that market's network at the right moment. ### 3. Supply collateral Use the **Supply** slider to specify the amount of meme tokens to supply, up to your wallet balance. Quick-select buttons (25%, 50%, 75%, 100%) are available for convenience. The more collateral you supply, the more you can borrow. ### 4. Choose your borrow amount Use the **Borrow** slider to set how much you'd like to borrow. Quick-select buttons (25%, 50%, 75%, 95%) let you pick a percentage of your maximum borrow. As you adjust the supply and borrow amounts, the summary panel updates in real time - showing your liquidation price, the liquidation percentage drop from the current price, and a mascot character that reacts to your position health. :::note Purinta caps borrowing at 95% of the theoretical maximum to give you a safety buffer regardless of your borrow percentage. Refer to [Built-in Safety Buffer](./risk-and-liquidation#built-in-safety-buffer) for details. Your borrow amount is also limited by the stablecoins currently available in the market. If a market is fully utilized, the app caps your borrow at the amount available, so you can never try to borrow more than the market can supply. ::: ### 5. Confirm the transaction Review the summary panel and click **Borrow Now**. Purinta bundles all necessary operations (approvals, collateral supply, borrow) into a streamlined flow. Depending on your wallet: - **Wallets supporting batch transactions** - everything is submitted as a single atomic EIP-7702 transaction. - **Other wallets** - operations are submitted as individual transactions in sequence. ### 6. Stablecoins arrive in your wallet Once confirmed on-chain, the borrowed stablecoins appear in your wallet and your collateral is supplied to the Morpho market. You can always borrow more or withdraw any excess collateral as long as your position remains healthy (meaning your borrowed amount stays below your maximum borrow capacity). ## What happens next? - [Manage your position](./managing-positions) by repaying, withdrawing, or simply borrowing more. - [Quick Repay](./managing-positions#quick-repay) your loan with one click. - [Modify your position](./managing-positions#modify-a-position) to adjust collateral, borrow more, or partially repay. --- ## FAQ # Frequently Asked Questions ## General ### What is Purinta? Purinta is a multichain DeFi lending app that lets you borrow stablecoins against your meme token holdings. Instead of selling your meme tokens when you need liquidity, you supply them as collateral and borrow against them. On Ethereum Mainnet you borrow USDC, and on Robinhood Chain you borrow USDG. ### Who built Purinta? Purinta is built and maintained by contributors to the [Api3 DAO](https://api3.org/), based on the mandate from [DAO proposal Primary-16](https://api3.eth.limo/#/history/primary-16). ### Does Purinta have its own smart contracts? No. Purinta is a frontend interface on top of [Morpho Blue](https://docs.morpho.org/), one of the most audited lending protocols in DeFi. It introduces no custom contract code - the only on-chain deployments are the standard Morpho markets, the Purinta vaults, and their oracle configurations, the same routine setup every Morpho curator performs. All lending operations run on Morpho's audited infrastructure. ### What networks does Purinta run on? Ethereum Mainnet and Robinhood Chain. You borrow USDC on Ethereum Mainnet and USDG on Robinhood Chain. See [Networks](./how-it-works#networks) for details. ### Who is curating the markets? [Api3](https://api3.org/), which is also a decentralized oracle provider for each market. ### Where does the vault's liquidity come from? The initial supply to the [Purinta vaults](./how-it-works#the-purinta-vaults) comes from Api3 treasury funds reserved for curation. Over time, anyone can supply stablecoins to add liquidity and earn yield. ### Are there any fees? The only fee on Purinta is a performance fee on the vaults, set by Api3 as the vaults' curator. It is taken from the interest a vault earns before yield is distributed to suppliers. Borrowing has no separate protocol fee beyond the variable interest rate, and there are no deposit, withdrawal, or repayment fees. ### Does Purinta offer rewards or incentives? Yes. Some markets include additional token incentives on top of the usual borrowing and lending economics. The rewards are paid in stablecoins and appear alongside your position. They are distributed through [Merkl](https://merkl.xyz/), where you claim them - Purinta links you directly to the claim page. Active incentives are displayed in the app whenever a campaign is running. ## Borrowing ### What can I borrow? Stablecoins - USDC on Ethereum Mainnet and USDG on Robinhood Chain. ### What can I use as collateral? Purinta supports selected meme tokens. See the [Supported Markets](./markets) page for the current list. ### How much can I borrow? Up to the market's LLTV share of your collateral value. The Purinta UI further caps this at 95% of the maximum to give you a [safety buffer](./risk-and-liquidation#built-in-safety-buffer). For example, with $100 of collateral in a 62.5% LLTV market you can borrow up to ~$59.37 through the UI. ### Can I borrow against multiple tokens at once? Each market is independent. You can have separate positions in different markets and on different chains (e.g. one position on Ethereum Mainnet and another on Robinhood Chain), but each position is isolated - they don't share collateral. ### Do I pay interest? Yes. Borrowers pay a variable interest rate (borrow rate) that accrues over time. The current rate is displayed in your position details. See [Interest](./how-it-works#interest) for more details. ### Do I earn interest on my supplied collateral? No. Collateral supplied to a Morpho Blue market does not earn supply APY - it only serves to secure your loan. This is because Morpho markets are one-sided - i.e. your supplied collateral is not lent out to other borrowers. ## Positions & Repayment ### How do I repay my loan? There are two ways. [Quick Repay](./managing-positions#quick-repay) on the My Positions page fully repays your debt and withdraws your collateral in one click (or uses your entire available stablecoin balance for a partial repay if you don't have enough). For more control, e.g. repaying a custom amount, use [Modify Position](./managing-positions#modify-a-position) to adjust your debt and collateral with sliders. There are no lockup periods. ### Why can't I fully repay my loan? This happens when your wallet doesn't have enough stablecoins to cover the full outstanding debt. In this case, Quick Repay will use your entire available balance for a partial repayment. To fully close your position, make sure your wallet holds enough to cover the remaining debt. ### Can I add more collateral to an existing position? Yes. Click [Modify Position](./managing-positions#modify-a-position) on any open position to adjust your collateral and borrow amounts using the borrow widget. ### Can I withdraw collateral without fully repaying? Yes, as long as your position stays healthy (above the liquidation threshold) after the withdrawal. While the UI prevents withdrawals that would result in immediate liquidation, your position may still be at risk if the collateral price drops further. ## Risk & Liquidation ### What is liquidation? If the value of your collateral drops enough that your loan-to-value ratio exceeds the market's LLTV, your position is liquidated - your collateral is sold to repay the loan. See [Risk & Liquidation](./risk-and-liquidation) for full details. ### How do I avoid liquidation? Keep your borrows reasonably safe to account for a potential price drop and monitor your positions during volatile times to add collateral or repay early if your position health drops. See tips for [how to avoid liquidation](./risk-and-liquidation#how-to-avoid-liquidation). ### What do the hearts signal in position health? The hearts on your position card show how healthy your position is. More filled hearts mean you're further from liquidation. As hearts start to fade, it's a signal to add collateral or repay some debt. See [The Health Indicator](./risk-and-liquidation#the-health-indicator) for a detailed breakdown. ### Are my positions safe from other users' liquidations? Yes. Each market is independent, and each user's position is isolated. Another user's liquidation has no direct impact on your position. ## Compatibility ### Do I need a specific wallet? No. Purinta supports all common EVM wallets such as MetaMask and Rabby, or any other wallet compatible with WalletConnect. ### Can I manage Purinta positions from other interfaces? Yes. Since Purinta uses standard Morpho Blue markets, your positions are visible and manageable from any Morpho-compatible interface (e.g. the [Morpho app](https://app.morpho.org/)). However, Purinta's UX is optimized specifically for meme token lending. ### Is Purinta available on mobile? Yes. Purinta is mobile-friendly from day one and is also available as a PWA (progressive web app). ### Can I use these docs with an AI assistant? Yes. The documentation is published in an LLM-friendly format following the [llms.txt standard](https://llmstxt.org/). Share [docs.purinta.xyz/llms-full.txt](https://docs.purinta.xyz/llms-full.txt) with your AI assistant of choice (e.g. ChatGPT or Claude) to give it the full documentation in a single file, or [docs.purinta.xyz/llms.txt](https://docs.purinta.xyz/llms.txt) for an index with links to the individual pages. ## Privacy ### What data does Purinta collect? Purinta requires no sign-up and never asks for personal information such as your name or email. The app retains limited data for analytics and platform improvement purposes - usage statistics collected through Google Analytics and error reports that may include your connected wallet address, which helps us diagnose and fix issues. Keep in mind that your wallet address and all lending activity are publicly visible on the blockchain in any case, as with any DeFi app. For further details, see the [Api3 privacy policy](https://api3.org/privacy-policy). --- ## How It Works Purinta is powered by [Morpho Blue](https://docs.morpho.org/) - a trustless, efficient lending protocol and one of the most audited and battle-tested foundations in DeFi. It enables the creation of isolated lending markets, each defined by a specific collateral/loan token pair and risk parameters. Purinta uses it as its lending engine, so all borrowing, collateral management, and liquidation logic runs on Morpho's smart contracts. This infrastructure is invisible from your perspective as a user, but it means Purinta is built on a solid, credible foundation with no additional smart contract risk. ## Networks Purinta is multichain. It runs on **Ethereum Mainnet** and on **Robinhood Chain**. Each chain has its own set of markets, its own stablecoin as the borrow asset, and its own Purinta vault supplying liquidity. | Network | Borrow asset | Vault | | -------------------- | ------------ | ------------------ | | **Ethereum Mainnet** | USDC | Purinta USDC Vault | | **Robinhood Chain** | USDG | Purinta USDG Vault | You connect any EVM wallet, and Purinta prompts you to switch to a market's network at the right moment. Positions on one chain are fully independent of positions on another. For the full list, see [Supported Markets](./markets). ## Markets Each meme token on Purinta has its own lending market. A market is defined by three parameters: | Parameter | Description | | --------------------- | --------------------------------------------------------------------------------------- | | **Supply asset** | The meme token you supply as collateral (e.g. PEPE, SPX, CASHCAT) | | **Borrow asset** | A stablecoin - USDC on Ethereum Mainnet, USDG on Robinhood Chain | | **LLTV** | Set per market - the maximum ratio of loan value to collateral value before liquidation | Markets are fully independent. A position in one market has zero bearing on a position in another. This is important for users with diversified meme portfolios - a crash in one token does not affect your other positions. Each market also has limits on how much collateral can be supplied to it and how much can be borrowed from it. Api3, as the curator, sets and adjusts these limits to keep each market within safe bounds as it grows. You don't need to track them yourself - the app only ever lets you supply or borrow up to what a market currently allows. For the list of supported markets, see [Supported Markets](./markets). ### LLTV (Liquidation Loan-to-Value) LLTV stands for **Liquidation Loan-to-Value**. It defines the maximum ratio between your borrowed amount and collateral value. If this threshold is reached, your position gets [liquidated](./risk-and-liquidation). **Example:** You supply $100 worth of PEPE. With an LLTV of 62.5%, you could theoretically borrow up to $62.50 USDC. However, Purinta's UI caps this under the hood at **95% of the maximum** (~$59.37) to give you a [built-in safety buffer](./risk-and-liquidation#built-in-safety-buffer). The UI also warns you when your borrow is close to the liquidation threshold. :::info The Purinta UI intentionally avoids technical terms like LLTV or LTV (loan-to-value) that are commonly used in DeFi. Instead, the built-in safety buffer and position health convey this information in a more user-friendly way. ::: For more on how liquidation works, see [Risk & Liquidation](./risk-and-liquidation). ## Interest Borrowers pay a variable borrow rate that accrues continuously. The rate adapts based on how much of the market's supply is being borrowed - when demand for borrowing is high, the rate increases. When it's low, the rate decreases. The current rate for each market is displayed as an APY in your position details. As interest accrues, you'll see your stablecoin borrow amount gradually increase over time. ## The Purinta Vaults Liquidity for borrowers comes from the **Purinta vaults**, curated by Api3. Each chain has its own vault - the **Purinta USDC Vault** on Ethereum Mainnet and the **Purinta USDG Vault** on Robinhood Chain. Each is built on top of Morpho's [vault infrastructure](https://docs.morpho.org/learn/concepts/vault-v2/) and distributes its deposits across the active meme token markets on that chain to ensure borrowers have access to liquidity. On the supply side, lenders can supply stablecoins to earn yield from the interest paid by borrowers. The vault charges a performance fee, set by Api3 as the curator, that is taken from this interest before yield is distributed to suppliers. This is the only fee on Purinta - there is no separate protocol fee on borrowing beyond the variable interest rate, and no deposit, withdrawal, or repayment fees. :::info As a curator, Api3 is responsible for maintaining enough liquidity in the markets, keeping the APY on the markets and vault attractive for both borrowers and lenders. To learn more about the curation process, refer to the [Api3 Curation docs](https://docs.api3.org/curation/). ::: ### Supplying to a vault Supplying to the vaults from the Purinta app is not available yet, but will be supported soon. For now, you can supply directly through the Morpho app. To supply and earn yield today, open the vault for the chain you want and deposit stablecoins. Your deposit is allocated across the active meme token markets on that chain and earns yield from the interest paid by borrowers. You can withdraw your supplied funds plus accrued yield at any time, subject to available liquidity in the markets. - **Ethereum Mainnet** - supply USDC to the [Purinta USDC Vault on Morpho](https://app.morpho.org/ethereum/vault/0xc92A37Fd0250F4eecF092960a2F70A1334217528/purinta-usdc). - **Robinhood Chain** - supply USDG to the [Purinta USDG Vault on Morpho](https://app.morpho.org/robinhood-chain/vault/0x37788ff0c1d4e45A7FE06BC7e71e0cc00121d0A8/purinta-usdg). ## Oracles Purinta uses [Api3](https://docs.api3.org/) as its oracle infrastructure for price feeds. These oracles power real-time collateral valuations and liquidation triggers. A unique advantage of Api3's oracle system is OEV (Oracle Extractable Value) capture - value from liquidation events that would otherwise be lost to MEV bots is returned to the protocol, improving economics for all participants. --- ## Introduction # Purinta Purinta is a multichain DeFi lending app, purpose-built for the meme token community. It lets you borrow stablecoins against your meme token holdings. So instead of selling your PEPE, SPX, CASHCAT and others when you need liquidity, you can use them as collateral and borrow against them. Purinta runs on **Ethereum Mainnet**, where you borrow USDC, and on **Robinhood Chain**, where you borrow USDG. Your meme tokens go to work for you while you keep your full upside exposure. ## Why Purinta? There's a massive amount of idle liquidity sitting in meme token wallets worldwide, traditionally ignored by large DeFi players. Many memes are very liquid and suitable candidates for on-chain lending. Their holders represent the Cypherpunk community and the original spirit of crypto. Purinta is the first lending product designed entirely around this community - in product fit, UX, brand, and feel. - **Meme-native UX** - dedicated mascot, brand, and community-first tone. No intimidating DeFi interfaces. - **Multichain** - Purinta lives on multiple chains. Borrow USDC on Ethereum Mainnet or USDG on Robinhood Chain, all from the same app. - **Zero additional smart contract risk** - Purinta adds no custom smart contract code of its own. It is a frontend interface on top of [Morpho](https://morpho.org/), one of the most audited and battle-tested DeFi lending protocols. - **Independent markets** - each meme token has its own isolated lending market. For example, your PEPE position is completely independent of your SPX position. - **Api3 oracles** - price feeds are powered by [Api3](https://api3.org/), which captures OEV (Oracle Extractable Value) for superior economics. ## Who is it for? - **Meme token holders** who want liquidity without selling their bags. - **DeFi-curious users** who find existing lending UIs too complex or intimidating. - **Community traders** who appreciate fun and engaging product experiences. ## Built by Contributors from Api3 Purinta is built by contributors to the [Api3 DAO](https://api3.org/), based on the mandate from [DAO proposal Primary-16](https://api3.eth.limo/#/history/primary-16). All technical development and integrations are handled by the Api3 team. The underlying lending infrastructure is provided by Morpho, meaning Purinta inherits Morpho's extensive security track record without introducing additional smart contract risk. ## What's next? - Learn [how Purinta works under the hood](./how-it-works). - Browse the [supported markets](./markets). - Follow the [step-by-step borrowing guide](./borrowing-guide). - Understand [risk and liquidation](./risk-and-liquidation). --- ## Managing Positions Once you've borrowed, you can manage your positions from the **My Positions** view. This page shows all your active positions across all markets and chains with real-time health data. ## Overview Each position card on the My Positions page displays: - **Supplying** - amount and USD value of your meme tokens supplied as collateral. - **Borrowing** - your outstanding stablecoin debt. - **Borrow Rate** - the current interest rate on your loan, expressed as an APY (Annual Percentage Yield). - **Token Price** - the current market price of your collateral token. - **Liquidation Price** - the collateral token price at which liquidation would trigger, including the percentage drop from the current price. - **Health** - a row of hearts indicating how far you are from liquidation (more filled hearts = healthier position). ## Quick Repay Click **Quick Repay** on any position card to open the repay modal. The behaviour depends on your stablecoin balance: - **If you have enough to cover the full debt** - the modal shows the full repay amount and the collateral you'll receive back. Clicking **Repay** repays the entire loan and automatically withdraws all your collateral to your wallet in a single transaction. - **If you don't have enough** - the modal uses your entire available stablecoin balance for a partial repay. Your collateral remains supplied, and the remaining debt continues to accrue interest. There is no manual amount input - Quick Repay is designed to be a one-click action. ## Modify a Position For more control over your position, use the **Modify Position** feature. This opens a dedicated view with the same slider-based interface used when borrowing: - **Supply slider** - adjust your collateral amount (supply or withdraw meme tokens). You can't go below the minimum required to keep your position healthy (the liquidation threshold). - **Borrow slider** - adjust your stablecoin debt (borrow more or repay). You can't repay more than your current stablecoin balance. The summary panel and mascot update in real time as you adjust values, showing how the changes affect your liquidation price. Click **Modify Position** to confirm. :::caution While the UI prevents changes that would result in immediate liquidation, your position may still be at risk if the collateral price drops further. ::: ## Rewards Some markets offer additional rewards on top of the standard borrowing and lending economics, distributed through [Merkl](https://merkl.xyz/). You claim these rewards on Merkl, and Purinta links to the claim page directly so you don't have to find it yourself. Whenever a campaign is running, the active incentives and how they are earned are shown in the app. --- ## Supported Markets Each Purinta market pairs a meme token (supply asset) with a stablecoin (borrow asset). Markets are fully independent - a position in one market has no effect on positions in other markets, including markets on other chains. Purinta runs on **Ethereum Mainnet**, where markets borrow USDC, and on **Robinhood Chain**, where markets borrow USDG. ## Ethereum Mainnet Markets on Ethereum Mainnet borrow USDC. | Market | Supply | Borrow | LLTV | Market ID | | --------------------- | ------ | ------ | ----- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | | SPX / USDC | SPX | USDC | 62.5% | [`0x31a277fde40c1bd37dd00cb2167fe1d5831b450efecc63323679228a101e9979`](https://app.purinta.xyz/borrow?market=0x31a277fde40c1bd37dd00cb2167fe1d5831b450efecc63323679228a101e9979) | | PEPE / USDC | PEPE | USDC | 62.5% | [`0xde2bb82278de27e7851625e2d7c25280adc6d499c000cc6904eb0ab29124a481`](https://app.purinta.xyz/borrow?market=0xde2bb82278de27e7851625e2d7c25280adc6d499c000cc6904eb0ab29124a481) | | SHIB / USDC | SHIB | USDC | 62.5% | [`0x87753839ac836a59dd13f66ea6ea5481ba2374ae76dfdfbe8c4861e835833646`](https://app.purinta.xyz/borrow?market=0x87753839ac836a59dd13f66ea6ea5481ba2374ae76dfdfbe8c4861e835833646) | ## Robinhood Chain Markets on Robinhood Chain borrow USDG (Global Dollar). | Market | Supply | Borrow | LLTV | Market ID | | ------------------------ | ------- | ------ | ----- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | | CASHCAT / USDG | CASHCAT | USDG | 38.5% | [`0x039503b6308d6d818d181e626d3fbc667d6e68393c3d74332a6124cd2dd6e755`](https://app.morpho.org/robinhood-chain/market/0x039503b6308d6d818d181e626d3fbc667d6e68393c3d74332a6124cd2dd6e755/cashcat-usdg) | The list of supported markets will expand over time as new meme token markets and chains are added. Each new market goes through a curation process before being listed on Purinta. ## Contract Addresses All lending operations go through Morpho Blue's audited contracts on each chain. ### Ethereum Mainnet | Contract | Address | | ---------------------------- | ----------------------------------------------------------------------------------------------------------------------- | | Morpho | [`0xBBBBBbbBBb9cC5e90e3b3Af64bdAF62C37EEFFCb`](https://etherscan.io/address/0xBBBBBbbBBb9cC5e90e3b3Af64bdAF62C37EEFFCb) | | Morpho Bundler | [`0x6566194141eefa99Af43Bb5Aa71460Ca2Dc90245`](https://etherscan.io/address/0x6566194141eefa99Af43Bb5Aa71460Ca2Dc90245) | | Permit2 | [`0x000000000022D473030F116dDEE9F6B43aC78BA3`](https://etherscan.io/address/0x000000000022D473030F116dDEE9F6B43aC78BA3) | | Purinta USDC Vault | [`0xc92A37Fd0250F4eecF092960a2F70A1334217528`](https://etherscan.io/address/0xc92A37Fd0250F4eecF092960a2F70A1334217528) | ### Robinhood Chain Addresses on Robinhood Chain (chain ID 4663) link to the [Robinhood Chain explorer](https://robinhoodchain.blockscout.com). | Contract | Address | | ---------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------- | | Morpho | [`0x9D53d5E3bd5E8d4Cbfa6DB1ca238AEA02E651010`](https://robinhoodchain.blockscout.com/address/0x9D53d5E3bd5E8d4Cbfa6DB1ca238AEA02E651010) | | Purinta USDG Vault | [`0x37788ff0c1d4e45A7FE06BC7e71e0cc00121d0A8`](https://robinhoodchain.blockscout.com/address/0x37788ff0c1d4e45A7FE06BC7e71e0cc00121d0A8) | For full details on Morpho Blue's contract architecture, see the [Morpho documentation](https://docs.morpho.org/). --- ## Risk & Liquidation Understanding liquidation risk is essential when borrowing on any lending protocol. Purinta makes this as transparent as possible with real-time health monitoring and built-in safety buffers. ## What is Liquidation? When you borrow stablecoins against your meme tokens, the protocol continuously monitors the ratio between your debt and your collateral value. If the value of your collateral drops enough that your loan-to-value ratio exceeds the market's **LLTV (Liquidation Loan-to-Value)** threshold, your position is **liquidated**: your collateral is sold to repay the loan. The LLTV is set per market - you can see each market's value on the [Supported Markets](./markets) page. This is standard DeFi lending behaviour - Purinta does not introduce any novel risk here. All liquidation logic runs on Morpho Blue's audited smart contracts. ## The Health Indicator Purinta displays a **health indicator** for each of your positions using a row of hearts. More filled hearts mean a healthier position - further from liquidation. Here's what the different levels mean: - **All hearts filled** - you have supplied collateral but borrowed nothing (or very little). - **Half filled** - you're borrowing half of the maximum allowed amount. - **No hearts filled** - you've reached the liquidation threshold. As your position health decreases, hearts start to fade, giving you a quick visual cue to take action. ## Liquidation Price For each position, Purinta calculates and displays the **liquidation price** - the price at which your collateral token would trigger liquidation. If the market price of your collateral drops to this level, your position will be liquidated. **Example:** You supply $100 worth of PEPE and borrow $50 USDC. Your liquidation price is the PEPE price at which $50 exceeds 62.5% of your collateral value - meaning your PEPE would need to fall to $80 in value (a 20% drop) for liquidation to occur. :::caution Your position accrues interest over time, which slowly increases your debt. This means your liquidation price gradually rises even if the market price stays the same. Keep this in mind for long-held positions. ::: ## Built-in Safety Buffer The UI limits your maximum borrow to **95% of the theoretical LLTV maximum**, giving you automatic breathing room even when borrowing the max. ## How to Avoid Liquidation - **Don't borrow the maximum** - leave a comfortable margin between your borrow amount and the LLTV limit. - **Monitor your positions** - check your portfolio regularly, especially during volatile times. - **Add collateral** - supply more meme tokens to improve your position health. - **Repay early** - reduce your debt when you see your position health declining. - **Watch liquidation price** - compare it to the current market price of your collateral token. ## What Happens During Liquidation? If your position reaches the LLTV threshold: 1. A liquidator repays some or all of your outstanding stablecoin debt. 2. In exchange, the liquidator seizes collateral equal to the repaid debt value plus a liquidation bonus that depends on the market's LLTV. 3. Any remaining collateral stays supplied in the market and can be withdrawn. Only the collateral needed to cover the liquidated debt plus the bonus is seized - not your entire supply. However, depending on how far past the LLTV your position has moved, most or all of your collateral may be taken. The best strategy is to monitor your positions and act before liquidation occurs. For full details on liquidation mechanics, see the [Morpho documentation](https://docs.morpho.org/learn/concepts/liquidation/). ## Smart Contract Risk Purinta introduces no custom smart contract code of its own. The only on-chain deployments are standard Morpho markets, the Purinta vaults, and their Api3 oracle configurations - the routine setup every Morpho curator performs. All of it runs on [Morpho Blue](https://docs.morpho.org/)'s [extensively audited](https://docs.morpho.org/get-started/resources/audits) contracts (audited by firms including Spearbit, Certora, OpenZeppelin, and ChainSecurity), not on new, unaudited logic. Your risk exposure is limited to: - **Morpho Blue smart contract risk** - the same risk as any Morpho user. - **Oracle risk** - price feed accuracy (mitigated by Api3's infrastructure). - **Market risk** - meme token price volatility (inherent to the collateral you choose).