> For the complete documentation index, see [llms.txt](https://docs.banx.gg/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.banx.gg/banx-protocol/how-to-borrow/detailed-borrowing-process.md). # Detailed borrowing process
### 1. The borrower takes the loan * Interest starts accruing linearly, every second ### 2. The borrower repays the loan in full * The borrower repays: the principal, accrued linear interest and the protocol fee * The borrower recovers full control of their collateral ### 3. The lender sends a refinancing call * A lender can send a refinancing call to an active loan, at any given time. Reasons why may include: * The loan being unhealthy or displaying downward trending health * The loan being healthy, and the lender decides to claim the liquidity owed * The lender wants to exit this market * What happens next will be determined by the offers in the order book: ### 4. The order book can auto-refinance the loan * A healthy loan is more than likely to match an existing offer in the order book * If so, the loan will be auto-refinanced * The lender will recover the principal + interest and exit * The new lender will enter the loan from scratch * Nothing changes for the borrower, the loan keeps accruing linear interest every second ### 5. The order book cannot auto-refinance the loan * If the order book contains no better or matching offers, the loan is sent to the refinancing auction ### 6. The 72 hour refinancing auction starts * The loan will be offered to new lenders on the same terms * During this time the collateral cannot be liquidated * The borrower is able to repay if they want to ### 7. New lender refinances via the auction * Refinancing involves covering the principal of the previous loan and accrued interest, allowing the previous lender to exit in full * The borrower continues to borrow, and can still repay anytime ### 8. The refinancing auction ends * The auction ends after 72 hours if no new lender has stepped in to refinance the loan, *and* if the borrower still hasn't repaid * If this is the case, the lender receives the collateral and the borrower loses it