Know Before You Borrow
Below is a summary of the most common pitfalls when using Bitcoin as collateral.
Like a mortgage lender can foreclose on a house, a platform can liquidate your Bitcoin if prices drop.
Risk Overview
Collateral Value Fluctuations
Rapid market swings can increase liquidation risk.
Liquidation Risk
Collateral can be sold if your LTV gets too high.
Platform Risk
Lending platforms may fail or restrict withdrawals.
Loan Complexity
Managing multiple loans and platforms is challenging.
Fees & Costs
Origination and trading fees reduce profits.
Smart Contract Vulnerabilities
Bugs or exploits in the code could put funds at risk.
Stablecoin Peg Risk
The loan's stablecoin could lose its $1 peg.
Network Congestion or Downtime
Busy networks may delay transactions.
User Error
Mistakes can lead to lost funds.
Top Lending Platforms
Choose a provider and start borrowing today.
Borrow with Sovryn ZeroBorrow with UnchainedBorrow with LednBorrow with SALT LendingBorrow with NexoBorrow with CoinbaseBorrow with BinanceBorrow with MiloBorrow with AaveSome links are referrals that help support the site.