Upon taking the loan, the borrower instantly receives the baseline value for the tokens that were collateralized. The borrower then has 30 days to repay the loan without interest. If, however, this lending period is too short and the loan cannot be repaid in time, they may choose to extend the lending period by another 30 days by burning 0.1% of their collateral. Without repayment or extension, the loan defaults and the collateral is burnt.