📌 Introduction
Do you have cryptocurrencies or NFTs that you’d like to put to work instead of letting them sit idle in your wallet? With Rain.fi, you can borrow funds using your assets as collateral. Whether for investing, trading, or financing a project, we gives borrowers full control over their loans without liquidation risk. Lenders can set their own terms to maximize returns.
💡 Peer-to-peer lending: Loans are provided directly by liquidity pools created by users. Every loan comes from another user — called a lender — who sets the loan duration, interest rate (APR), and Loan-to-Value ratio (LTV). This decentralized model ensures maximum flexibility for borrowers while eliminating traditional financial intermediaries.
On Rain.fi, you have two main ways to borrow depending on your needs. Discover the different options in this article.
💧 Why Borrow on Rain.fi?
1. No Liquidation Before Expiry
- Unlike traditional platforms, you don’t risk losing your assets even if their value drops temporarily.
- You can wait for the value to rise before repaying, as you can extend the loan duration as many times as needed.
2. Flexibility
- Loan duration is set according to your needs (1 day, 7 days, or more).
- You can repay at any time before the loan expires.
3. Full Control Over Your Borrowed Assets
- With Simple Borrow, the funds are sent directly to your wallet, allowing you to use them freely for trading, investing, or any other activity.
4. Unlocking NFT Value
- Using an NFT as collateral allows you to turn a static asset into an active source of liquidity.
1️⃣ Borrowing Option : Trade / Margin Swap
Margin Swap allows borrowers to access funds greater than their initial deposit using leverage. In this case, the loan effectively becomes a trading position, similar to those used in traditional trading.
How does it work?
- You make an initial deposit, called “Deposit”.
- You choose a leverage ratio (e.g., 2x, 3x, or more), which determines the loan amount.
- The total collateral — consisting of your deposit plus the borrowed amount — is locked on the platform for the duration of the loan.
Setting Loan Conditions:
⏳ Loan Duration:
The loan duration determines how long your borrowed funds remain locked before repayment is due.
- Short durations (1–7 days) → Ideal for quick trades, minimizing exposure.
- Longer durations → More flexibility but higher interest costs over time.
- You can repay early or extend the loan by paying additional fees.
📈 Annual Percentage Rate (APR):
The APR is the interest rate paid on the borrowed amount, expressed annually but prorated for the loan duration.
- Example: A 50% APR means you’d pay 50% interest over a year, but for short-term loans, interest is calculated based on the loan period.
Borrowing $1,000 at 50% APR for 5 days → Interest = (50% / 365) × 5 × $1,000 = $6.85.
🔗 Find the full guide on our Trade Tool (Borrow with leverage) here !
2️⃣ Borrowing Option: Simple Borrowing Without Leverage
On Rain, Borrow is a method of borrowing without leverage, where only the deposit serves as collateral. Unlike Margin Swap, the borrowed asset is sent directly to your wallet.
How does it work?
- You deposit collateral (crypto or NFT).
- The borrowed amount is sent to your wallet.
- You can use these funds freely during the loan period.
Why choose Borrow?
Borrowed funds are immediately available and can be used on Rain apps or other platforms.
Using NFTs as Collateral: With Rain.fi, NFTs, which often remain idle in a wallet, can be used as collateral to unlock liquidity. This allows NFT holders to convert dormant assets into active capital.
🔗 Find the full guide on borrowing here !
⚡ Active Loan: Manage Your Position Anytime
When you borrow or trade on Rain.fi, your collateral remains locked on the platform for the entire loan duration. However, you don’t have to wait until the loan expires — you can take action at any time.
▶️ For Borrower (Borrow):
Your collateral consists of crypto tokens or NFTs, which are locked until the loan is repaid or expires.
- Instant (Sell your collateral) → If you want to exit the loan immediately, you can sell your collateral, settle the interest, and recover the borrowed amount. If the collateral has gained value, you keep the profit; if it has lost value, you take a loss.
- Repay your loan → At any time, you can pay back the borrowed amount and fully recover your collateral.
- Extend the loan duration → Need more time? Renew the loan by paying the renewal fees. If your position is negative, you may need to rebalance by repaying part of the borrowed amount to maintain a safe LTV ratio.
▶️ For trader (Trade with leverage/Margin Swap):
Your collateral includes your deposit and the borrowed amount, both of which are locked for the loan’s duration.
- Instant (Close your position) → Sell your collateral at any time. If the borrowed asset has increased in value, you keep the profit; if it has dropped, you take a loss. Interest is settled automatically.
- Repay your loan → Fully repay the borrowed amount to recover your collateral.
- Extend the loan duration → If your position is negative but you expect a market recovery, you can extend the loan. If the market has dropped significantly, you may need to rebalance by repaying part of the borrowed amount to keep your LTV in a safe range.
⚠️ If no action is taken before the loan expires, your collateral is automatically transferred to the lender.
🤔 Which collateral choose ?
1️⃣ Leverage Loan (Margin Swap)
- Volatile collateral (wBTC, wETH, SOL, JUP, memecoins etc.) + even more volatile borrowed asset → ⚠️ High risk:
If your collateral drops in value, even if the borrowed asset increases, your overall position may deteriorate because your guarantee loses value. - Stablecoins (USDT, USDC…) → ✅ Safer option: Your collateral remains stable, allowing better control over your leverage strategy.
💡 If you are a beginner, it is highly recommended to use a stablecoin as collateral for a leverage loan. Only use a volatile collateral if you have solid experience and fully understand the associated risks.
2️⃣ Non-Leveraged Loan (Simple Borrow)
- Volatile collateral (wBTC, wETH, SOL, JUP, memecoins etc.) → 🟢 Good option if you want to keep your holdings in a token while borrowing a stablecoin to use on other protocols or seize investment opportunities without selling your position.
- NFTs → Interesting if you own a valuable NFT that is idle in your wallet and you want to convert it into liquidity without selling it.
💡 With a simple borrow, using a volatile collateral can be an effective strategy to maintain exposure to an asset while gaining liquidity.
⚠️ What are the risks?
Unlike traditional trading platforms where liquidation is a constant fear, Rain.fi significantly reduces risk by ensuring that liquidation is not possible as long as the loan is active.
What happens if I don’t repay on time?
❌ If no action is taken before the loan expires, it is liquidated, and the collateral is directly transferred to the lender with no possibility of reversal.
Make sure to monitor your loan activity carefully!
🔔 We recommend enabling notifications to receive alerts before expiration.
⏳ Grace Period
Each loan benefits from a grace period of one hour per 24 hours of loan duration.
Example: A 2-day loan has a 2-hour grace period after expiration.
This extra time gives borrowers a final chance to repay or extend their loan before it is automatically liquidated.
💵 About The Rain.fi Fees
As Borrower:
- Token-based loans: ~0.006 SOL is required for loan and token account creation.
- Token loans & mortgages & NFT loans: 20% upfront platform fee on loan interest paid.
- 1% fee on each Market Sell (on swapped amount).
As Lender:
- 5% of the interest received by the lender is taken by the platform.
- If Liquidation Auto Swap is enabled: Minimum 1% fee and 2% if the lender is in profit on the liquidated amount.
Conclusion: Why Rain.fi is the Best Choice for Borrowers?
Rain.fi provides a simple, flexible, and secure lending solution tailored for investors and traders.Whether you want to access leverage without liquidation risk or unlock the value of your NFTs, Rain.fi adapts to your financial goals while giving you full control over your assets.
📌 Check out our FAQ for answers to common borrowing questions.
🌐 Ready to try it out?
Visit Rain.fi and experience a new way to borrow.
Start borrowing from just $10… 💸
🔗 Rain.fi Links:
Site: https://rain.fi/
Discord: https://discord.gg/rainfi
Twitter: https://twitter.com/RainFi_
FAQ : https://app.rain.fi/faq
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