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

# FAQ

## General

### What are Vanilla Markets?

Felix Vanilla Markets are lending pools built on the Morpho stack. They let users borrow or lend tokens such as **USDC, HYPE, and UBTC** against over‑collateralised positions, all with floating interest rates derived from pool utilisation.

### How are they different from the CDP Market / feUSD?

* **Asset‑native borrowing** — you can borrow any token, not just feUSD.
* **No redemption mechanics** — therefore no borrower‑set fixed rates.
* **Lower max‑LTV** and **variable APRs** that adjust block‑by‑block.

### Why borrow through Vanilla instead of the CDP?

If you need direct exposure to a specific asset (e.g., HYPE to stake or USDC to LP) and don’t want redemption risk or swap slippage, Vanilla is simpler.

### When do I need to repay my loan?

Loans are open‑ended; interest accrues continuously. You may repay at any time or maintain the position indefinitely as long as your **Health Factor stays above 1**.

## Interest Rates

### How are borrow and supply rates determined?

Vanilla Markets follows a utilisation curve. As `Utilisation = Borrows / Supply` rises, **Borrow APR increases** and **Lender APY** tracks it minus a small spread.

## Liquidations

### How do liquidations work?

If your Health Factor drops below 1.00, any liquidator can repay your debt and seize collateral at a discount. The process repeats until HF ≥ 1.

### How can I avoid liquidation?

* Keep HF > 1.25 for a cushion.
* Add collateral or repay debt when collateral prices fall.
* Use on‑chain alerts or an automation service.

## Lenders

### Where does the lender yield come from?

Purely from borrow interest. 

### Can I withdraw anytime?

Yes, but if utilisation is high the contract may queue your withdrawal until enough borrows repay or new supply arrives.

***