# Detailed lending process

<figure><img src="/files/HmrrdzyLFYSGoB9HuPdu" alt=""><figcaption></figcaption></figure>

### 1. The lender places an order book offer

* The lender places a SOL offer in the order book for a given collection
* This remains here until a borrower takes the offer

### 2. The lender refinances a loan from auction

* Refinancing auctions allow lenders to immediately enter a loan by taking over an existing loan that has received a refinancing call
* This allows you to start earning interest immediately, compared to SOL offers waiting in the order book for borrowers

### 3. The loan starts

* Interest begins to accrue linearly, every second

### 4. The borrower repays the loan in full

* When the borrower repays, the lender recovers the principal and interest accrued at that particular moment

### 5. The lender sends a refinancing call

* A lender can send a refinancing call to an active loan, at any given time
* What happens next will be determined by the offers in the order book

### 6. 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 accrued and exit
* The new lender will enter the loan from scratch

### 7. 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

### 8. 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

### 9. A new lender takes the refinancing 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, now at a higher interest, and can still repay anytime

### 10. 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 does not recover the principle or interest owed
* Instead the lender receives the collateral


---

# 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.banx.gg/banx-protocol/how-to-lend/detailed-lending-process.md?ask=<question>
```

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.