# Introduction

Hashstack allows users to take under-collateralized loans. The loans can be spent on various dapps like AMMs, Vaults, DEXs allowing you to increase your capital efficiency. The project broadly contains the following stakeholders:

1. Suppliers
2. Borrowers
3. Liquidators

We first discuss about how the deposits and borrows are handled in the system. The system has a provision to spend the loan on pre-configured integrations, which we call as Layer-3 (L3) Integrations. The loans given to users stay within the Open protocol and users have the right to spend these loans on supported integrations via Open. 

The profit or loss made through spending on these integrations is on the user and Open shall recover the loan anytime by liquidating the collateral if the loan falls below a certain threshold. Any user is allowed a maximum debt of 5x the collateral. This is to ensure proper risk management and protection of user deposits/supplies.