# Frequently Asked Questions

Votre, like other borrowing protocols, will predominantly be used by holders of concentrated token positions such as family offices, high net worth individuals, foundations, DAOs, miners, validators, traders, degens and more.

Votre hedges directional risk upfront so as to remove the need for forced sales in illiquid market environments. This is done in a way that does not introduce counterparty risk or credit risk from a borrower.

The protocol swaps the collateral to the borrower’s chosen liability token (typically stablecoins), mitigating the protocol’s exposure to any decline in the asset’s price.

Providers post stablecoins upfront to guarantee the borrower’s upside exposure to the cap.

Because Votres are volatile bets and providers can monetize this volatility. They do this by offering terms to the user that contain a small spread, then monetizing this spread over the life of the trade. This technique is called “gamma scalping” and you can learn more about it here.

Votre allows for open competition between providers onchain to provide the best offer. With every Votre request via the hosted frontend, users are shown competitive quotes before they can execute in order to promote best execution.

Like any spread, it is a function of the number of providers. Votre will go live with three sophisticated options providers from day one who we have partnered with, and they will compete for user flow.

Because in bull markets it can be beneficial to take chips off the table or even redeploy borrowed collateral into a new position for greater capital efficiency. Users can also “roll” their positions higher as assets appreciate to maintain exposure so long as there is sufficient provider-provided liquidity.

Uniswap TWAP oracles.

Uniswap for now, but this may expand in the future as liquidity improves.

Yes, but compared to interest rates and capital requirements of other protocols, this is minimal.

Votre does not charge interest. However, If you use an escrow service, suppliers may charge interest.

All provider collateral is locked into Votre’s smart contracts, so they'll only get money back at maturity once the final price of the asset is in. Additionally, both sides of a Votre position are represented as NFTs, which can be sold, traded, or united to unwind a position.

Other protocols liquidate your collateral at the worst possible time. Votre creates a time-based, as opposed to a price-based loan.

Protocols can’t give tax advice, but this is an issue that is likely solved by using an escrow service, which introduces suppliers to Votre. By escrowing user collateral and charging users interest, Votres may allow capital gains to be deferred in some jurisdictions. Speak to your tax professional for more information.

If prices go up, you can roll your loan! Rolling is like a checkpoint in a video game you can always fall back to. Think of it like going up the salmon ladder. There's certainly a cost to rolling, but there's a bigger cost to not having protection.

A person usually with a large amount of tokens such as BTC or ETH, who wants to generate yield in the form of interest on their tokens.

From suppliers who want to earn yield on their collateral (BTC, ETH, etc.).