# Being a Lender
**There are two routes to become a lender - create a Liquidity Deposit or find one of the Liquidity Requests and 'Lend' it.**
**Way 1.** Supplying the loan from **Markets** page, all you have to do is to find the most attractive or the liquidity thats needed for you. After pressing 'Lend', follow the steps and sign the transaction. Shortly after signing, Liquidity will come to the borrower, and NFT Bond will come to Lender.
**Supplying the loan**\
After connecting to the app, navigate to the **Market** tab.
Users can see all available loan requests on the marketplace page, including the **LEND** option. When pressed, it opens a window with all the loan request details.
**The confirmation window displays five critical details about the loan:**
* **Loan** - The amount of the asset to be lent to the borrower;
* **Interest** - The amount to be received as a reward if the borrower successfully repays the loan;
* **Term** - The time frame in which the assets will be lent out to the borrower;
* **Collateral** - If the borrower fails to repay the loan, the lender will be entitled to liquidate it and obtain collateral that will cover the loan plus interest.
* **Health factor** - The indicator that shows the condition of your funds against the borrowed ones + interest. The higher value is, the safer the state of your funds are.
**Choose a loan from the list**\
After visiting the **Market** tab, you can choose a loan from the **Loan request** list. You can customize your search by filtering loans by **Loan asset**, **Collateral**, **Interest**, and/or **Term**.
You can supply a particular loan by pressing the **LEND** button. Consequently, you must confirm the transaction to fulfill the loan request.
After successfully submitting the transaction, you will receive an **L** token called **NFT Bond**. This token is proof of loan and must be kept in your wallet to receive the loan back.
**Way 2: Create a Liquidity Deposit**
After confirming your **Liquidity Deposit,** your **Deposit** will be deposited into a smart contract and once the funds are on-chain, they will become visible on the Liquidity Deposits Market and Dashboard pages.
When you will create the Liquidity deposit, you will receive a “L” token called an **NFT Bond**. Remember to keep this token to claim back the loan.
### **Canceling a loan request**
Users can cancel non-taken liquidity deposits on the **Dashboard** page by clicking the **Cancel** button on the desired deposit. \
After canceling the deposit, it is removed from the **Markets** page. The deposit is withdrawn from the smart contract and returned to the user's wallet.
### **Liquidate**
The **Loan liquidation** feature triggers two cases:
* When the loan **Health Factor** reaches the **Liquidation Threshold**.
* When the **Borrower** fails to repay the loan before the set term.
#### **Oracle liquidation**
When a loan’s **Health Factor** reaches the **Liquidation Threshold**, the lender can manually liquidate the loan. This operation becomes active in the **Dashboard** window.
#### **Liquidation after loan expiration**
Every loan has a term, which indicates the loan period. Suppose the borrower fails to repay the loan before the deadline. In that case, the lender can liquidate it and receive the collateral locked in the smart contract. The process can be executed through the **Dashboard** tab.
#### **Liquidate and swap**
The **Liquidate and swap** feature allows the lender to swap the liquidated asset for another one automatically. The user simply initiates **Liquidate** function from the **Dashboard** and chooses the **Liquidate and swap** option in the confirmation window (picture below). After signing the transaction, the collateral is swapped and sent to the user’s wallet through a DEX.
### **Claim interest**
Whenever a borrower repays a loan, the second party (the lender) can claim the agreed-upon accrued interest. Proof of payment is the **Interest paid** status, indicating the lender’s eligibility to **Withdraw** his earns. To do this, the lender must provide the corresponding **L** NFT issued when supplying the loan.
### **How much does supplying a loan cost?**
Transaction fees may vary from 0.6₳ to 2.4₳, depending on whether the user interacts with a smart contract within the particular transaction. Keep in mind that minting an NFT bond may also increase the transaction costs. This is because the minting fee is locked with the NFT and is returned in the burning event.
***Disclaimer:** The following guide has informational purposes. The displayed assets are merely examples, and the guide should not be taken as financial advice. Always do your own research.*
