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.