To ensure a smooth experience when borrowing crypto assets or stablecoins on Metal X Lending, we’ve put together a few helpful tips to guide you on your borrowing and lending journey.
Helpful Tips and Suggestions
- Remember that loans need to be repaid in the same asset you borrowed. For example, if you borrow XUSDC, you’ll need to repay in XUSDC. Similarly, if you borrowed XBTC, repayment must be in XBTC. This is an important detail to keep in mind, especially if the market value of the asset increases, as you’ll be repaying your loan at that higher value.
-
Keep an eye on your Loan Health. Loan Health is determined by the ratio of your collateral value to your outstanding loans, factoring in the Loan-to-Value (LTV) of your collateral assets. If you notice your Loan Health declining, consider adding more collateral or repaying part of your loan to improve it. Sometimes, it may be wise to over-collateralize your loan to keep your Loan Health above 100%, which can reduce the risk of liquidation.
- It’s a good idea to have a repayment plan! Just like with any traditional loan, having a strategy for repayment—whether through regular installments or waiting for favorable market conditions—is important. Your plan might involve liquidating some of your crypto assets, but it’s best to avoid surprises if liquidation is something you’d prefer to steer clear of.
If you have any questions about this guide or just want to say “Hi”, follow our Metallicus Client Services+ Help Center on X (@MetalHelpsMe) to stay up to date and learn how to get the most out of your XPR Network experience!