# Depositing

The first step to start interacting with the Mimo protocol is to create a Vault and deposit collateral. Increasing the amount of collateral deposited increases the amount of PAR/paUSD one can borrow.

![](https://1576197425-files.gitbook.io/~/files/v0/b/gitbook-legacy-files/o/assets%2F-MdnKrtV1Ev2ILZ6C4SC%2F-MeOMiZH-3UYo4Ulq02w%2F-MeONN46WgZgZfYG2nAI%2FVault_%20Open%20and%20Deposit.png?alt=media\&token=a7793294-65cd-4e76-9ac4-bc446a9189ef)

The deposited collateral is locked in a Vault, and allows the owner to borrow PAR/paUSD tokens up to an amount based on the Minimum Collateralization Ratio (MCR). An MCR of 150% means borrowers need 150% collateral deposited before they can borrow up to 100%.