In Credit Mode, your borrowing limit depends on the value of the assets in your Liquid bank account:
Each supported asset has a Loan-to-Value (LTV) ratio (How much you can borrow against this asset)
Borrowing power is the sum of your assets’ USD values times their LTVs.
Your health factor rises when collateral goes up or you repay; it falls when collateral goes down or you borrow more.
Example:
$10,000 UBTC (50% LTV) + $5,000 wHYPE (45% LTV)
Borrowing power = $5,000 + $2,250 = $6,750
Supported collateral & LTVs
Core Assets
wHYPE — 45% LTV
beHYPE — 45% LTV
UBTC — 50% LTV
UETH — 45% LTV
USOL — 45% LTV
LTVs can change via governance/risk updates. Always check the app for live parameters.
Understanding liquidation risk
What is liquidation?
If your position becomes undercollateralized (e.g., markets drop or you borrow too close to your max), the system may sell part of your collateral to cover debt and restore safety.
How to avoid it
Keep a buffer (don’t sit at 100% of borrowing power).
Add collateral or repay if markets move against you.
What happens during liquidation
Liquidation bots will liquidate your position
Liquidators repay part of your debt
In return, they receive a portion of your collateral plus a liquidation bonus
Liquidation Bonus for core assets: 12.68%
After liquidation
Your Safe remains open.
Remaining assets continue as collateral and can be used for Direct Pay (debit) or to rebuild your buffer.
Understanding Liquidation Riskholds
Here’s a more detailed look at Liquidation Thresholds for each asset type. This will help you understand the point at which liquidation starts and the bonus applied when assets are liquidated.
Asset | LTV | Liquidation Threshold | Liquidation Penalty |
UBTC | 50% | 62.5% | 12.68% |
UETH | 45% | 62.5% | 12.68% |
USOL | 45% | 62.5% | 12.68% |
wHYPE | 45% | 62.5% | 12.68% |
beHYPE | 45% | 62.5% | 12.68% |
Liquidation Terms:
1) LTV (Loan-to-Value) — 50% for UBTC
How much you can initially borrow against your collateral.
Formula: Borrowing Power = Collateral Value × LTV
Example: Deposit $10,000 USDC → Borrowing power = $5,000 (50% of $10,000).
2) Liquidation Threshold — 62.5% for UBTC
The point where your position becomes eligible for liquidation. If Debt / Collateral ≥ 62.5%, liquidators can act.
Safety Margin: At max borrow (50% LTV), the price of UBTC can drop by 20% before you face liquidation.
Example: You borrowed $5,000 on $10,000 collateral. If the value of your UBTC collateral drops to $8,000, your LTV hits 62.5% ($5,000 / $8,000), and the position can be liquidated.
3) Liquidation Bonus — 12.68% for UBTC
Incentive paid to liquidators who cover bad debt; they receive collateral plus this bonus.
Example: If price drops leave you with $7,800 collateral and $5,000 debt, a liquidator repays $5,000 and receives $5,634 of your UBTC collateral (debt + 12.68% bonus).