# 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. *** --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://usefelix.gitbook.io/docs/lending-products/publish-your-docs/faq.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.