DocumentationOpen App

Credit Accounts

A Credit Account is the core primitive of Gearbox Protocol. It is an isolated smart contract that holds a borrower's collateral and borrowed funds, enabling leveraged interaction with DeFi protocols while maintaining strict solvency guarantees.

The Credit Suite

Each Credit Account belongs to a Credit Suite — a trio of tightly coupled contracts:

Credit Facade (Entry Point)

The user-facing contract. Borrowers submit multicall transactions here. The Facade validates requests, routes operations to the Credit Manager, and enforces the final solvency check.

Credit Manager (Accounting Engine)

The core logic contract. It tracks debt, manages collateral, calculates health factors, and interacts with the Pool for borrowing/repayment. The Credit Manager maintains the registry of all Credit Accounts and their state.

Credit Configurator (Admin Interface)

The governance contract. Market Curators use it to manage risk parameters — collateral tokens, liquidation thresholds, adapters, fees, and debt limits. All impactful changes pass through timelocks.

Account Lifecycle

  1. Open — User deposits collateral and borrows from the Pool. A Credit Account contract is deployed (or reused from a pool of pre-deployed accounts).

  2. Operate — User executes multicalls: swap collateral, farm yield, adjust leverage. All operations happen inside the Credit Account. The user never directly touches Pool liquidity.

  3. Monitor — The account's Health Factor (collateral value vs. debt) is continuously assessable. If it drops below 1, the account becomes liquidatable.

  4. Close — User repays all debt + interest + fees. Remaining collateral is returned to the user's wallet. The Credit Account is returned to the reuse pool.

Key Properties

Isolation — Each Credit Account is a separate contract. One account's operations or losses cannot affect another.

Check-on-Exit — Any sequence of whitelisted operations is allowed within a multicall, but the account must remain solvent (HF >= 1) when the multicall ends. This enables complex strategies that may be temporarily insolvent mid-execution.

Non-Custodial — Neither the protocol nor the Market Curator can access funds inside a Credit Account. Only the account owner (and authorized bots with explicit permissions) can operate on it.

Composable — Through Adapters, Credit Accounts can interact with any whitelisted DeFi protocol (Uniswap, Curve, Lido, Aave, etc.) as if they were regular EOA wallets — but with solvency enforcement.

Configuration Parameters

Market Curators define the risk profile for all Credit Accounts in their suite:

ParameterDescription
Liquidation Threshold (LT)Per-token discount factor for solvency calculation. LT of 85% means $100 of ETH counts as $85 toward collateralization.
Collateral TokensAllowed tokens in Credit Accounts. Unlisted tokens are valued at zero.
AdaptersWhitelisted DeFi protocol integrations (Uniswap, Curve, etc.).
Debt LimitsMinimum and maximum debt per account, preventing dust or concentration risk.
FeesLiquidation fee (to protocol) and liquidation premium (to liquidator).

Learn More