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

# FAQ

## G**eneral Questions**

<details>

<summary>What is WeissFi?</summary>

WeissFi is a decentralized finance (DeFi) protocol built on the **Sui blockchain** that allows users to **borrow** WEIS against their SUI holdings while setting their **own interest rates**. It also enables users to **earn yield** through Stability Pools, all while benefiting from **transparent and efficient liquidations**.

###

</details>

<details>

<summary>Why use WeissFi instead of traditional lending platforms?</summary>

WeissFi introduces **user-controlled interest rates**, **efficient liquidations**, and **no fixed repayment schedules**—giving borrowers and depositors **full control** over their financial strategies.

</details>

***

## **Borrowing FAQ**

<details>

<summary>How do I borrow WEIS on WeissFi?</summary>

* **Deposit SUI** as collateral.
* **Choose how much WEIS you want to borrow** (keeping an eye on your Loan-to-Value ratio).
* **Set your preferred interest rate**—higher rates lower your risk of redemption.
* **Confirm & sign the transaction** to receive WEIS in your wallet.
* **Manage your loan** in the dashboard at any time.

</details>

<details>

<summary>What is Loan-To-Value (LTV)?</summary>

LTV is the ratio of **borrowed WEIS** to the **USD value of your collateral**.​​&#x20;

A **higher LTV** increases the risk of **liquidation**, while a **lower LTV** gives more security.

</details>

<details>

<summary>What is Liquidation Price?</summary>

The **Liquidation Price** is the price at which your collateral is no longer sufficient to cover your loan, triggering liquidation.

If the **price of SUI falls below this level**, your loan **may be liquidated**.

</details>

<details>

<summary>How do liquidations work?</summary>

If your **LTV exceeds the maximum threshold (91%)**, your collateral is automatically liquidated.

* Your debt is repaid.
* Your collateral is transferred to **Stability Pool depositors** at a discount.

</details>

<details>

<summary>How do I repay my loan?</summary>

* Simply go to the **dashboard** and click **Repay Loan**.
* You can repay **any amount at any time**—there is **no fixed schedule**.

</details>

***

### **Earning FAQ**

<details>

<summary>How do I earn yield on WeissFi?</summary>

By **depositing WEIS into Stability Pools**, you earn **interest from borrowers** and **liquidation gains** from undercollateralized loans.

</details>

<details>

<summary>Where does the yield come from?</summary>

* **Interest Payments:** Borrowers pay interest, and **50% of this is distributed to depositors**.
* **Liquidation Gains:** If a borrower is liquidated, depositors receive their **SUI collateral at a discount** (\~2.5%).

</details>

<details>

<summary>Is there a lockup period?</summary>

No! **You can withdraw your WEIS at any time**—no lockups, no delays.

</details>

<details>

<summary>What are Stability Pools?</summary>

Stability Pools are **decentralized liquidity pools** where users deposit WEIS to earn rewards from **borrower interest payments and liquidations**.

</details>

<details>

<summary>How is my risk managed in Stability Pools?</summary>

Each **Stability Pool is tied to a specific collateral** (e.g., SUI). This allows you to choose your **preferred risk exposure**.

</details>

***

### **Redemptions FAQ**

<details>

<summary>What are redemptions?</summary>

Redemptions ensure WEIS maintains its **$1 peg** by allowing users to swap WEIS for **SUI at face value**.

* If **WEIS falls below $1**, arbitrageurs redeem it for **SUI**, reducing WEIS supply and helping restore the peg.
* Redemptions **start with the borrowers paying the lowest interest rates**.

</details>

<details>

<summary>How do redemptions affect borrowers?</summary>

If your **loan is selected for redemption**, your **debt is reduced**, and an equivalent amount of your **collateral is used** for repayment.

* You **do not lose USD value**, only your **debt and collateral adjust proportionally**.
* You keep a **small redemption fee** from the redeemer.

</details>

<details>

<summary>Can I protect myself from redemptions?</summary>

Yes!

* Set a **higher interest rate** to place yourself further down in the redemption queue.
* Monitor **WEIS price**—if WEIS is above $1, redemptions don’t happen.

</details>

<details>

<summary>What is the redemption fee?</summary>

A **small fee (\~0.5%)** is applied when someone redeems WEIS for SUI. The fee **stays within affected borrowers’ Troves**, making it fairer than other systems.

</details>

***

### **Additional Questions**

<details>

<summary>Can I adjust my interest rate after borrowing?</summary>

Yes! You can adjust your **interest rate at any time** in the dashboard.

</details>

<details>

<summary>What happens if WEIS depegs?</summary>

* If WEIS **trades below $1**, redemptions increase to bring it back to peg.
* If WEIS **trades above $1**, borrowers reduce rates, increasing supply and stabilizing the price.

</details>

<details>

<summary>Is WeissFi fully decentralized?</summary>

Yes! **All transactions, borrowing mechanics, and liquidations** happen **fully on-chain**, with **no centralized control**.

</details>