# How it works ## Borrow and Lend, Seamlessly AlphaLend enables users to supply assets and earn passive yield while unlocking borrowing power — all on the SUI blockchain. When you deposit supported assets, you earn interest from borrowers, and your tokens can be used as collateral to borrow other assets in return. ## Overcollateralized, By Design All loans on our platform are overcollateralized. This means borrowers must deposit assets worth more than the value they borrow, ensuring the protocol remains solvent even in volatile market conditions. Each token has specific Loan-to-Value (LTV) ratios, guiding how much you can borrow safely. ## Real-Time Risk Monitoring Our system calculates your borrow and supply balances using real-time price data from decentralized oracles like Pyth. These values feed into a dynamic **health factor**, which is visualized in a simple risk bar — helping you monitor how close your position is to liquidation. ## Smart Risk Controls Borrowing beyond your **Safe Borrow Limit** is automatically blocked to protect your position. Liquidations only occur when your debt surpasses the **Liquidation Limit**, at which point third-party liquidators can step in to stabilize the system. This layered safety net ensures responsible borrowing and lending. --- # 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://docs.alphafi.xyz/alphalend/introduction/how-it-works.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.