How crypto-backed loans work

What you'll learn: The basic mechanics of pledging, borrowing, and repaying.

A crypto-backed loan has four simple steps:

1. Deposit BTC or ETH into your Collateral Account. You can add or withdraw collateral while your loan is active, as long as your LTV stays within safe limits.

2. Receive borrowing power based on the value of your collateral and a loan-to-value (LTV) ratio.

3. Borrow USDC. The funds appear in your account, ready to use, send, or withdraw.

4. Repay at any time. There are no fixed repayment schedules or monthly payments. When the loan is fully repaid, your collateral is released back to you.

If the value of your collateral falls too far relative to what you've borrowed, part or all of it may be liquidated to cover the loan — more on that in the liquidation article.