> For the complete documentation index, see [llms.txt](https://goldilocks-1.gitbook.io/goldidocs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://goldilocks-1.gitbook.io/goldidocs/locks/locked-locks-and-borrowing.md). # Locked LOCKS and Borrowing When a user stakes LOCKS, they can also borrow up to the full floor price of their staked LOCKS. For instance, if the user has 100 LOCKS staked and the floor price of a LOCKS token is 1 HONEY, then they can borrow 100 HONEY from the FSL. Their staked LOCKS is then locked and can’t be withdrawn or sold until the loan is fully repaid, although the user will still receive staking rewards for their locked LOCKS. The borrowed HONEY are still counted as part of the FSL for the purpose of calculating market price etc because they need to be repaid before the tokens that they are backing can be sold. Borrowing doesn’t dilute the floor price in any way. Crucially, there is zero risk of liquidation with these loans. Users can borrow the floor price of their tokens, no more and no less. Since floor price can never decrease, there is never any need to liquidate users (compared to standard lending protocols where borrowing limits are determined by market price). If the floor price increases, the amount that users can borrow will increase proportionally. All loans come with a one off 3% origination fee, 100% of which is sent to the DAO treasury. After the origination, the loans are completely interest free for their duration. --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter, and the optional `goal` query parameter: ``` GET https://goldilocks-1.gitbook.io/goldidocs/locks/locked-locks-and-borrowing.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.