Borrowing
MAGMA allows borrowing against locked narrative backing positions without unwinding your conviction stake. Capital never leaves MAGMA — the conviction position stays intact throughout the borrow.
Borrow UI is live and the data model is in place, but on-chain borrow execution, real collateral-value queries, and the liquidation engine are mainnet-gated. On devnet, health factors and capacity reflect stubbed values. Treat all figures as pre-production.
The conviction capital flywheel
- Back a narrative — capital locks and earns DeFi yield.
- Borrow against the locked position for immediate liquidity.
- Deploy the borrowed capital elsewhere while staying in the narrative.
- The oracle resolves TRUE — collect your Forge pool payout.
- Repay the borrow from the payout.
- Net profit: resolution yield + DeFi yield − borrow cost.
Borrowing privileges by tier
Borrowing access requires reaching Ember tier (50+ Conviction Score) or holding an Ember-tier MAGMA NFT.
| Tier | Max LTV | Access |
|---|---|---|
| Initiate | None | No borrowing. Reach Ember or hold an Ember NFT. |
| Ember | 50% | Kamino borrow only. |
| Flare | 60% | Kamino + Save. Fast Actions unlocked. |
| Magma | 65% | All V1 borrow features. |
| Core | 70% | P0 unified margin. |
| Volcanic | 75% | Maximum access. |
LTV caps are enforced at the API level and are stricter than the underlying protocol maximums, creating a deliberate safety buffer between MAGMA's cap and the protocol's liquidation threshold.
Collateral aggregation
Borrow capacity is computed as sum(all_lending_positions_usd) × LTV_tier. Only lending
positions count as collateral:
| Source | Counts as collateral |
|---|---|
| Kamino positions | Yes |
| Save positions | Yes (when integrated) |
| Jupiter Lend positions | Aggregated when integrated |
| Jito / Marinade (liquid staking) | Not yet — a future feature |
| MAGMA Staking | No — protocol token, not SOL-denominated |
See DeFi Integrations for per-protocol details.
Fast Actions
One-tap preset borrow operations available to Flare tier and above:
| Action | Effect |
|---|---|
| Safe | 30% of tier max LTV |
| Balanced | 50% of tier max LTV |
| Max | 100% of tier max LTV (warning shown) |
| Instant SOL | SOL borrow at 40% of tier max LTV |
| Repay from Yield | Repay using accrued DeFi yield only — principal untouched |
Health factor
Your health factor measures the safety of a borrow position. Above 1.0 is healthy;
below 1.0 is eligible for liquidation (health = collateral value / borrowed value).
MAGMA sends push notifications when the health factor falls below configured thresholds:
| Level | Threshold |
|---|---|
| Warning | Below 1.50 |
| Urgent | Below 1.20 |
| Critical | Below 1.05 |
MAGMA does not control liquidation mechanics. Liquidation is executed by the underlying lending protocol (Kamino, Save). Monitor your health factor closely.
Payout hold period
All narrative payouts are subject to a mandatory 48-hour hold after oracle resolution, during which the challenge window is open. Payouts execute after the hold expires and no valid challenges are pending.
Project Zero (P0) unified margin
Core tier (600+) and Volcanic tier (900+) participants unlock P0 — a self-custodial prime broker built on Solana that provides unified margin across Kamino, Jupiter Lend, and other venues under a single health factor.
API routes
GET /v1/borrow/rates — current borrow APRs (includes 50bps MAGMA spread)
GET /v1/borrow/capacity/:wallet — available borrowing power by tier
GET /v1/borrow/health/:wallet — health factors for open positions
GET /v1/borrow/positions/:wallet — open borrow positions
GET /v1/borrow/simulate — simulate a borrow before executing
POST /v1/borrow/prepare — prepare a borrow transaction
POST /v1/borrow/confirm — confirm a borrow after signing
POST /v1/borrow/repay/prepare — prepare a repayment transaction
POST /v1/borrow/repay/confirm — confirm a repayment after signing
POST /v1/borrow/accept-terms — accept borrow terms (required once)
The REST base is https://api.magmaprotocol.xyz. See the API
Reference for schemas.