How to borrow with a crypto-backed loan on Usko
Borrow against crypto you already hold, with LTV and liquidation explained properly so the risk is not a surprise.
What you need first
- A verified account.
- Crypto you are willing to lock as collateral.
- A repayment plan. A loan you cannot repay ends badly.
A crypto-backed loan lets you borrow without selling what you hold. You lock some crypto as collateral, and the borrowed amount is credited to your wallet. There is no credit check, because the collateral is the guarantee.
The two terms you must understand before borrowing
LTV (loan-to-value) is the size of your loan compared with the value of your collateral. Borrow 50 worth of stablecoin against 100 worth of crypto and your LTV is 50%.
Crypto prices move, so your LTV changes every minute without you doing anything. If your collateral falls in value, the LTV rises.
Liquidation is what happens if the LTV crosses the threshold set for that loan product: your collateral is sold automatically to repay the debt. You lose the collateral. It is not a penalty — it is the mechanism that makes the loan possible in the first place.
Step 1 — Open the Loans section
Select Loans from the main menu. Each loan product is a card showing the interest rate, the borrowing limits and the terms.
Step 2 — Read the threshold on the product
Before anything else, find the maximum LTV and the liquidation threshold on the card. Those two numbers define your safety margin. They are shown live on the product — read them there.
Step 3 — Choose your collateral and loan amount
- Select the asset you will lock as collateral and the amount.
- Enter how much you want to borrow. The form shows the resulting LTV as you type.
- Borrow well below the maximum. Borrowing right up to the limit means a small price dip can liquidate you.
Step 4 — Confirm
Review the summary — collateral locked, amount borrowed, interest rate, resulting LTV — and confirm. The borrowed amount arrives in your wallet immediately and the collateral is locked.
Step 5 — Watch the position
Your loan position shows the current LTV and the liquidation level at all times. Check it whenever the market moves sharply. If the LTV is climbing you have two ways to fix it: repay part of the loan, or add more collateral. Both lower the LTV immediately.
Step 6 — Repay
Repay whenever you like from the loan position. Partial repayments are fine, and interest is settled first. When the loan is fully repaid the collateral unlocks automatically and returns to your balance.
Risk warning. A crypto-backed loan can cost you your collateral. If the market falls far enough, the collateral is sold automatically and you do not get to choose the moment. Interest accrues the whole time the loan is open. Never borrow to increase a trading position — a loss then costs you both the trade and the collateral. Nothing here is financial advice.