> For the complete documentation index, see [llms.txt](https://help.helioscard.xyz/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://help.helioscard.xyz/credit-line-and-borrowing/how-it-works.md).

# How the credit line works

A **credit line** lets you borrow against the assets you hold in Helios, instead of selling them. The assets you commit are your **collateral**.

## The basics

1. You hold assets in Helios.
2. You open a credit line, which sets how much you can borrow against those assets.
3. You borrow up to your limit and put the funds to use — for example, to fund your card.
4. You repay over time. While you owe a balance, your collateral stays committed.

{% hint style="info" %}
You can only borrow a portion of your collateral's value — not all of it. This buffer is what protects your account from being liquidated on a normal market move. See [Borrow limits & tiers](/credit-line-and-borrowing/limits-and-tiers.md) and [Liquidation](/credit-line-and-borrowing/liquidation.md).
{% endhint %}

## Interest

An outstanding balance accrues **interest at a variable rate** for as long as it's unpaid. Your current balance, including interest, is shown on your dashboard. Repaying sooner means less interest.

## Automation (optional)

In **Settings** you can turn on:

* **Auto increase credit** — automatically borrow up to your limit when you deposit.
* **Auto top up with collateral** — automatically sell a little collateral to keep your balance healthy (an automatic version of [Sell to repay](/credit-line-and-borrowing/sell-to-repay.md)).

{% hint style="warning" %}
If auto increase credit is on but auto top up is off, your borrowed balance and interest keep growing without being paid down. Consider turning on both, or neither.
{% endhint %}

## Frequently asked

### Do I pay interest?

Yes — an unpaid balance accrues interest at a variable rate. See your dashboard for the current amount.

### Can I add more collateral later?

Yes. Adding collateral increases the value you can borrow against.

### What happens if I don't repay?

Interest keeps accruing, and if your collateral's value falls too far relative to what you owe, some collateral may be sold to cover it. See [Liquidation](/credit-line-and-borrowing/liquidation.md).


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