> ## Documentation Index
> Fetch the complete documentation index at: https://docs.vanna.finance/llms.txt
> Use this file to discover all available pages before exploring further.

# How Vanna Works

> Lenders, margin accounts, venues and the health check that ties them together.

Vanna has two sides: **lenders** who supply assets to pools, and **margin accounts** that borrow from those pools and put the loan to work on other Solana protocols.

## The pieces

| Piece | What it is |
| - | - |
| **Lending pools** | One pool per lendable asset (SOL, USDC, USDT). Lenders deposit and receive vTokens (vSOL, vUSDC, vUSDT) that grow as interest accrues. |
| **Margin account** | A program-owned account per wallet. It holds your collateral, the tokens you borrowed and every receipt or position you open. |
| **Venues** | The protocols a margin account can act on: Jupiter and Titan (swaps), Phoenix (perps), Kamino (lending), Perena and Vanna's basis vaults (yield). |
| **Oracle** | Prices for every asset, from Kamino Scope first and Pyth as fallback. The app shows each source and its freshness on the Margin page. |
| **Health check** | Run on-chain after any action that could reduce health. The account must stay above a health factor of 1.10. |

## Follow the money

**1. Lenders supply**

A lender supplies USDC on Earn and receives vUSDC. The USDC sits in the pool, ready to be borrowed.

**2. A trader deposits collateral**

A trader opens a margin account and deposits collateral, for example SOL, USDC or TSLAx.

**3. The trader borrows**

The trader borrows USDC from the pool. The USDC moves into the trader's margin account, not their wallet, and the account records the debt.

**4. The loan goes to work**

From the margin account the trader swaps, opens a perp, or moves into a Farm vault. Each result (tokens, kSOL, vbSOL, a Phoenix position) stays in the account and counts as collateral.

**5. Interest flows back**

Borrowers pay interest that accrues to the pool. Lenders' vTokens are worth more underlying over time.

**6. Unwind**

The trader closes positions and repays (or uses Flash repay to do it all in one flow), then withdraws what's left.

## Account health

```text theme={null}
Health factor = total collateral value (USD) ÷ total debt value (USD)
```

Every asset counts at its full oracle value, with no per-asset weighting. At **1.10 or below** the account can be liquidated. The app blocks withdrawals and new borrows that would take you under a **1.15** safety floor, so you always keep a buffer. More in [Health Factor](https://docs.vanna.finance/solana/guides/margin/health-factor.md).

## Predict

Predict is a separate flow on World.xyz markets. When you hold matching **Yes and No** shares of the same market, Vanna pairs them, merges them back into USDC and lends that USDC in its pool, so the pair earns interest until the event resolves. See [Earn While You Wait](https://docs.vanna.finance/solana/guides/predict/earn-while-you-wait.md).

## Next steps

> **[Getting Started](https://docs.vanna.finance/solana/guides/getting-started.md)**
>
> Sign in and mint test funds.

> **[Architecture](https://docs.vanna.finance/solana/developers/architecture.md)**
>
> The programs behind it, for developers.


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