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 USDC (90% LTV) + $5,000 hbBTC (60% LTV)
Borrowing power = $9,000 + $3,000 = $12,000
Supported collateral & LTVs
Core Assets
wHYPE — 55% LTV
beHYPE — 55% LTV
UBTC — 52% LTV
UETH — 52% LTV
USDC — 90% LTV
USDT0 — 90% LTV
Platform Token
BEAT — 20% LTV
Hyperbeat Vault Tokens
hbUSDT — 80% LTV
hbUSDC — 80% LTV
hbBTC — 60% LTV
lstHYPE — 60% LTV
hbHYPE — 60% 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.
Turn on price/health alerts in the app.
What happens during liquidation
A Debt Manager coordinates liquidation.
Liquidators purchase your collateral with a bonus (varies by asset/liquidity).
Up to 50% of total collateral may be liquidated first; if still unhealthy, more collateral can be sold.
Liquidators choose which collateral to take based on liquidity/bonus.
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 | Contract Address (chain) | LTV | Liquidation Threshold | Liquidation Bonus |
USDC | TBD | 90% | 95% | 1% |
USDT0 | TBD | 90% | 95% | 1% |
hbUSDC | TBD | 80% | 90% | 2% |
hbUSDT | TBD | 80% | 90% | 2% |
UBTC | TBD | 52% | 72% | 5% |
UETH | TBD | 52% | 72% | 5% |
hbBTC | TBD | 60% | 80% | 5% |
wHYPE | TBD | 55% | 75% | 3.5% |
beHYPE | TBD | 55% | 75% | 3.5% |
lstHYPE | TBD | 60% | 80% | 5% |
hbHYPE | TBD | 60% | 80% | 5% |
BEAT | TBD | 20% | 50% | 5% |
Liquidation Terms:
1) LTV (Loan-to-Value) — 90% for USDC
How much you can initially borrow against your collateral.
Formula: Borrowing Power = Collateral Value × LTV
Example: Deposit $10,000 USDC → Borrowing power = $9,000 (90% of $10,000).
2) Liquidation Threshold — 95% for USDC
The point where your position becomes eligible for liquidation. If Debt / Collateral ≥ 95%, liquidators can act.
Buffer: 5% between max borrow (90%) and liquidation (95%).
Example: You borrowed $9,000 on $10,000 collateral. If interest accrues or USDC value shifts and your debt reaches $9,500 (95%), the position can be liquidated.
3) Liquidation Bonus — 1% for USDC
Incentive paid to liquidators who cover bad debt; they receive collateral plus this bonus.
Example: With $10,000 collateral and $9,500 debt, a liquidator repays $9,500 and receives $9,595 of your USDC collateral (debt + 1% bonus).