Debit Pay Mode
Spend your USD balance directly.
Funds are deducted from your available spending balance at checkout
No interest
Credit Mode (borrow against assets)
Spend without selling by borrowing against your supported collateral.
Your assets stay in your Liquid Bank as collateral
Borrowing power depends on asset value and Loan-to-value ratios.
Variable borrow APR (shown live in-app)
Interest accrues continuously until you repay
Repay anytime; add collateral anytime by depositing into your account
Your active spending mode at settlement determines whether a transaction is debit or credit.
How interest works in Credit Mode (variable)
Rate: Variable borrow APR. You’ll see the current rate in the app.
Accrual: Starts immediately after you borrow; no grace period or billing cycle.
Compounding: Interest compounds continuously on your outstanding borrow.
Example: Borrow $100 for a full year at 5.8% APR → you’d owe about $105.98 if you made no repayments. (Exact amounts update continuously in-app.)
Good to know
Repaying earlier reduces total interest paid
There are no “minimum payments”, you control timing and amounts
If your collateral value falls, maintain a buffer to avoid liquidation (see below)
Users cannot repay debt by selling part of their collateral. All repayments must be made with your USD balance in your Liquid Bank account. Partial liquidations are not supported for voluntary repayments and only occur if LTV thresholds are breached.
Your limit, LTVs (Loan-to-value ratio), and health
Your borrowing power = collateral asset value × LTV
Supported collateral & LTVs
Core Assets
UBTC — 50% LTV
UETH — 45% LTV
USOL — 45% LTV
WHYPE — 45% LTV
beHYPE — 45% LTV
LTVs and eligibility can change; always check this article for latest parameters
Liquidation basics (stay safe)
What triggers liquidation?
If your position becomes under-collateralised, for example due to market movements or borrowing too close to your limit, liquidation may occur.
Liquidation becomes possible when:
Debt / Collateral ≥ Liquidation Threshold
For supported assets, the liquidation threshold is 62.5%.
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 account stays open. Remaining assets continue as collateral, and you can keep using Debit Pay or rebuild your buffer.