> For the complete documentation index, see [llms.txt](https://docs.grace.loans/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.grace.loans/borrowers/add-remove-collateral.md).

# Add/Remove collateral

Before borrowing on Grace, you must first deposit at least one collateral.

Each collateral asset has a unique yearly collateral fee. This fee is continuously deducted from your deposited collateral amount as soon as you deposit your collateral regardless of your outstanding loans, if any.

{% hint style="info" %}
The collateral fee is displayed under "APR" next to each collateral. Before depositing collateral, make sure that the fee APR is appropriate for your needs.
{% endhint %}

You can deposit and withdraw collaterals at the [**Borrow page**](https://app.grace.loans/borrow). Once you deposit your first collateral, the borrow limit progress bar will show your resulting borrow limit. You may then borrow assets up to the new limit.

<figure><img src="/files/jAnVWKJYjBuDLFwaPA0M" alt=""><figcaption></figcaption></figure>

Once you start borrowing, you may only withdraw your collateral partially without compromising the health of your position. If you wish to fully withdraw your collateral, you must repay all your loans.

{% hint style="success" %}
Grace never lends your collateral to other borrowers. All collateral is stored within Grace until withdrawal or liquidation.
{% endhint %}


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