Looping refers to the action of supplying assets and borrowing simultaneously with a single click. It allows users to maximize their positions in the same asset, creating a leveraged effect. The maximum leverage available varies for each market due to different Loan-to-Value (LTV) ratios.

When assets are supplied and borrowed simultaneously, the user's dashboard will display the borrowed balance. To exit a looping position, users can either add more collateral and manually withdraw or repay, or they can gradually exit the position by making partial withdrawals and repayments.

The risk associated with looping is that if you use up to 100% of the borrowed allocation and the price of the asset drops or you accrue borrow interest, there is a risk of liquidation. Therefore, it is advisable to stay below 100% borrow limit to mitigate this risk.

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