What is Borrow to Trade?
Borrow to Trade lets you access instant trading margin by borrowing USD against your supported collateral assets. Borrowed funds are deposited directly into your Trade account so you can open leveraged positions straight away — no selling, no waiting.
Key benefits:
Keep your assets — borrow against them instead of selling
Instant funding — no transfer delays
Flexible collateral — borrow against all assets or a specific one
Variable interest — pay only for what you use
Where to Access Borrow to Trade
Location | How to access |
Trade page | Click Borrow to Trade below the Deposit/Withdraw buttons |
Card Spending tab | Click Quick Borrow next to "Change Mode" |
Assets page | Click Quick Borrow in the main action buttons |
Supported Collateral
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% |
USD+ | 60% | 91.5% | 2.62% |
XAUT (GOLD) | 40% | 62.5% | 12.68% |
⚠️ LTVs and eligibility are subject to change. Always check the app for the latest parameters.
How Much Can You Borrow?
Your borrowing power is based on the value of your deposited collateral:
Borrow Limit = Collateral Value × LTV
Example: $10,000 of UBTC at 50% LTV = $5,000 borrow limit.
When borrowing, choose from:
All collaterals — borrows proportionally across all deposited assets
Specific collateral — borrows only against a single asset (e.g. UBTC)
The available amount depends on your selection:
All collaterals: total credit limit minus existing borrows
Specific collateral: the maximum borrowable for that individual market
How Interest Works
Rate: Variable APR, displayed in-app when selecting your collateral
Accrual: Starts immediately — there is no grace period
Compounding: Continuous on your outstanding balance
Example: Borrow $1,000 at 5% APR for one year → ~$1,051.27 owed with no repayments.
Tips to keep interest costs down:
Repay early to reduce total interest paid
Check your rate regularly — it's variable and can change
The Borrowing Flow
Step 1: Enable Borrow to Trade (first time only)
You'll be asked to authorize the service via a one-time on-chain transaction.
Step 2: Add Collateral (if needed)
No collateral deposited yet? You'll be prompted to:
Enable Credit mode (if not already active)
Deposit eligible collateral
Step 3: Choose Your Destination
Select where the borrowed funds should go:
Fund my Trade account — available now
Send to bank account or wallet — coming soon
Step 4: Select Collateral and Amount
Choose All collaterals or a specific asset
Enter the amount to borrow (in USDC)
Review your borrow summary:
Current borrow limit
Amount borrowing
Remaining limit after this borrow
Step 5: Confirm and Trade
Funds are deposited into your Trade account instantly. You're ready to trade.
Repaying Your Debt
There are no minimum payments or billing cycles — you repay on your own schedule.
To repay:
Go to your account
Navigate to the repayment section
Choose your repayment amount
⚠️ Important:
Repayments must come from your USD balance in your Liquid Bank account
You cannot repay by selling collateral — partial liquidations only occur if LTV thresholds are breached
Repaying early reduces total interest paid
Liquidation Risk
What triggers liquidation?
Liquidation becomes possible when:
Debt ÷ Collateral ≥ Liquidation Threshold (62.5%)
This can happen if your collateral value drops due to market movements, or if you borrowed close to your maximum limit.
What happens during liquidation?
Liquidation bots flag your position as under-collateralized
Liquidators repay part of your debt on your behalf
In return, they receive a portion of your collateral plus a liquidation bonus (12.68%)
Your account remains open after liquidation. Remaining assets continue as collateral and you can rebuild your position.
How to avoid liquidation
Don't borrow at your limit — leave a buffer below your maximum
Monitor collateral value — market drops reduce your borrowing capacity
Add collateral if your position becomes elevated
Repay debt to increase your safety margin
Liquidity Limits
Borrow to Trade availability depends on protocol liquidity. If your requested amount exceeds what's currently available, you'll see a notification showing:
The currently available liquidity
An option to contact our team for larger requests
Frequently Asked Questions
Do I need to be in Credit mode to use Borrow to Trade? You need collateral deposited. If you're not in Credit mode and have no collateral, you'll be prompted to enable Credit mode and make a deposit before proceeding.
Can I borrow against all my collaterals at once? Yes — select All collaterals to borrow proportionally across all your deposited assets.
What currency do I receive? You receive USDC, deposited directly into your Trade account.
Is there a minimum borrow amount? There's no set minimum, but the amount should be practical for your trading purposes.
How quickly can I access borrowed funds? Funds are available in your Trade account immediately after the transaction confirms — typically within seconds.