diff --git a/src/actions/account.ts b/src/actions/account.ts
index f428008..7d80fd4 100644
--- a/src/actions/account.ts
+++ b/src/actions/account.ts
@@ -5,8 +5,8 @@ import {
   SystemProgram,
   TransactionInstruction,
 } from "@solana/web3.js";
-import { TOKEN_PROGRAM_ID, WRAPPED_SOL_MINT } from "../constants/ids";
-import { TokenAccount } from "../models";
+import { LENDING_PROGRAM_ID, TOKEN_PROGRAM_ID, WRAPPED_SOL_MINT } from "../constants/ids";
+import { LendingObligationLayout, TokenAccount } from "../models";
 import { cache, TokenAccountParser } from "./../contexts/accounts";
 
 export function ensureSplAccount(
@@ -75,6 +75,28 @@ export function createTempMemoryAccount(
   return account.publicKey;
 }
 
+export function createUninitializedObligation(
+  instructions: TransactionInstruction[],
+  payer: PublicKey,
+  amount: number,
+  signers: Account[]
+) {
+  const account = new Account();
+  instructions.push(
+    SystemProgram.createAccount({
+      fromPubkey: payer,
+      newAccountPubkey: account.publicKey,
+      lamports: amount,
+      space: LendingObligationLayout.span,
+      programId: LENDING_PROGRAM_ID,
+    })
+  );
+
+  signers.push(account);
+
+  return account.publicKey;
+}
+
 export function createUninitializedMint(
   instructions: TransactionInstruction[],
   payer: PublicKey,
diff --git a/src/actions/borrow.tsx b/src/actions/borrow.tsx
index 4d59073..a03d2e5 100644
--- a/src/actions/borrow.tsx
+++ b/src/actions/borrow.tsx
@@ -13,6 +13,7 @@ import {
   createTempMemoryAccount,
   createUninitializedAccount,
   createUninitializedMint,
+  createUninitializedObligation,
   ensureSplAccount,
   findOrCreateAccountByMint,
 } from "./account";
@@ -52,7 +53,7 @@ export const borrow = async (
     AccountLayout.span
   );
 
-  const obligation = createUninitializedAccount(
+  const obligation = createUninitializedObligation(
     instructions,
     wallet.publicKey,
     await connection.getMinimumBalanceForRentExemption(