> For the complete documentation index, see [llms.txt](https://docs.satsterminal.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.satsterminal.com/borrow/security-and-risk/collateral-monitoring-and-liquidation.md).

# Collateral Monitoring & Liquidation

Borrow provides tools to help you understand the status of your loan, including your current Loan-to-Value (LTV), collateral value, and repayment requirements.

These tools are intended to help you monitor risk while you remain in full control of your loan decisions.

### Loan visibility

Your dashboard shows key information for each active loan, including:

* current LTV
* collateral value
* outstanding loan balance
* accrued interest (if applicable)

This information helps you stay aware of how market movements or interest changes may affect your loan.

### Liquidation risk

If the value of your BTC collateral falls relative to the borrowed amount, the loan may approach a liquidation threshold.

Each lender defines its own parameters for:

* liquidation LTV
* interest model
* required collateral levels

Borrow displays these thresholds so you can understand the conditions under which liquidation may occur.

### User actions to manage loan health

You can take steps at any time to adjust your loan and manage risk, including:

* adding more BTC as collateral
* repaying part or all of the borrowed amount

These actions can help reduce your LTV and lower the risk of liquidation during periods of price volatility.

### Notifications & awareness

Borrow highlights important loan status details in the interface, but users are responsible for monitoring their own positions, including:

* market changes
* collateral fluctuations
* lender-defined terms

Loan health may change quickly during periods of market volatility.

### Borrow’s role

Borrow provides visibility into your loan and facilitates actions you choose to take.

Borrow does not:

* intervene automatically
* adjust collateral on your behalf
* prevent liquidations initiated by the lender
* alter lender-defined parameters

Managing loan risk is ultimately the borrower’s responsibility.