# Overview

K613 is a decentralized lending protocol that allows you to earn on your crypto assets or borrow against them as collateral.

Simply put, K613 connects those who want to earn yield on deposits with those who want access to liquidity without selling their assets.

The protocol is based on a time-tested model: it uses the architecture of Aave v3, but simplified to the minimum necessary set of features. This means there are no experimental mechanics—only core, clear, and robust elements.

#### What You Can Do in K613

K613 offers three main use cases:

**1. Earn (Supply)**

You can deposit assets into the protocol and start earning yield.

Your income comes from two sources:

* interest paid by borrowers
* additional protocol rewards

Your funds remain liquid (within the available liquidity of the system).

**2. Borrow**

You can use your assets as collateral and borrow other tokens.

This is useful if you don’t want to sell your assets but need liquidity. For example, you can borrow stablecoins against ETH.

It’s important to understand: loans in K613 are always overcollateralized. This means the value of your collateral must exceed the amount you borrow.

**3. Participate in the Protocol Economy**

K613 has its own tokenomics:

* the K613 token is used for rewards and staking
* staking is done via xK613
* participants receive a share of the protocol’s revenue

This allows users not only to use the protocol but also to take part in its economic model.

#### Core Principles

K613 is built around several key ideas:

* **Transparency**\
  All operations occur on-chain and are publicly verifiable.
* **Risk Control**\
  Each asset has risk parameters: limits, liquidation thresholds, and restrictions.
* **Simplicity**\
  The interface and logic are simplified compared to traditional DeFi protocols.
* **Capital Efficiency**\
  Your assets can simultaneously serve as collateral and generate yield.

#### What You Need to Understand from the Start

Using K613 involves risks. The most important one is **liquidation risk**.

If the value of your collateral decreases or your debt increases, your position may be partially liquidated. To manage this, the protocol uses the **Health Factor (HF)**:

* HF above 1 - position is safe
* HF below 1 - liquidation is possible

The protocol always shows this metric and how it changes before any operation.

#### Where K613 Operates

K613 is deployed on the Monad network.\
All transaction fees are paid in ETH.

#### Who K613 Is For

* those who want to earn yield on crypto assets
* those who want liquidity without selling
* those who want to participate in a DeFi protocol’s economy

If you’re just getting started, it’s recommended to move on to the **Concepts** section, where key terms and mechanics are explained in simple language.