> For the complete documentation index, see [llms.txt](https://iolend.gitbook.io/iolend/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://iolend.gitbook.io/iolend/user-guide-and-examples.md).
# User Guide and examples
* Step-by-step guide for new users on how to engage with **ioLend**.
* Best practices for leveraging, investing, and managing risks.
#### Guide for 1 click loop:
Users can deposit [$IOTA](https://x.com/search?q=%24IOTA\&src=cashtag_click), [$USDT](https://x.com/search?q=%24USDT\&src=cashtag_click), and [$ETH](https://x.com/search?q=%24ETH\&src=cashtag_click) as collateral, borrow assets against them, and reinvest those borrowed assets. This process can be repeated multiple times, amplifying the potential of the initial capital. We call this the "Infinite money loop."
There are two main participants in the [@iolendfi](https://x.com/iolendfi) market:
**The Lender**: User who deposits his money for others to borrow. The lender receives yield on their deposited assets when it's utilized.
**The Borrower**: User who borrows money from the lender. The borrower pays interest on the borrowed assets until the loan is repaid.
Here’s an example:
User A has 10 [$IOTA](https://x.com/search?q=%24IOTA\&src=cashtag_click) tokens and wants to acquire more [$IOTA](https://x.com/search?q=%24IOTA\&src=cashtag_click) because he believes the price of [$IOTA](https://x.com/search?q=%24IOTA\&src=cashtag_click) will rise. He can deposit 10 [$IOTA](https://x.com/search?q=%24IOTA\&src=cashtag_click) into [@iolendfi](https://x.com/iolendfi) and one click loop it until he reaches up to 3.3x leverage on his initial position.
The user started with 10 [$IOTA](https://x.com/search?q=%24IOTA\&src=cashtag_click) in his wallet, and now he is earning yield on 32.35 [$IOTA](https://x.com/search?q=%24IOTA\&src=cashtag_click). This means, the user borrowed 22.35 [$IOTA](https://x.com/search?q=%24IOTA\&src=cashtag_click) tokens on which he has to pay interest now. Even thought borrowing interest is higher than lending interest, he will also earn [$IOL](https://x.com/search?q=%24IOL\&src=cashtag_click) token which makes his loop profitable.
In order to earn the [$IOL](https://x.com/search?q=%24IOL\&src=cashtag_click) token incentives on the deposit/borrow user needs to hold 5% of his total deposit/borrow balance in [$IOL](https://x.com/search?q=%24IOL\&src=cashtag_click) - [$IOTA](https://x.com/search?q=%24IOTA\&src=cashtag_click) token LP which can be "Zapped in" on top of the page. Once the requirement is met, user is earning [$IOL](https://x.com/search?q=%24IOL\&src=cashtag_click) token emissions.
**Risk Management!**
While infinite money loops offer high yield potential, they also carry risks. Make sure to monitor your position in order to not get liquidated during volatile market movements.
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