Crypto-Backed Loans
Borrow against your crypto without selling it. Deposit collateral, receive USD on your Encrypto Card, and repay on your own terms.
How It Works
- Deposit collateral. Lock supported crypto assets (ETH, BTC, SOL, USDC) as collateral.
- Receive credit. USD is credited to your Encrypto Card balance based on the loan-to-value (LTV) ratio.
- Spend normally. Use your card as usual. The borrowed amount is your spending power.
- Repay. Pay back the loan in USDC or any supported crypto. Interest accrues daily.
- Withdraw collateral. Once repaid, your collateral is unlocked and returned.
Loan Parameters
| Parameter | Value |
|---|---|
| Max LTV | 50-70% (asset-dependent) |
| Interest rate | Variable, based on market conditions |
| Min loan amount | $100 |
| Max loan amount | $100,000 (initial) |
| Collateral types | ETH, BTC (wBTC), SOL, USDC |
| Repayment | Flexible — any time, any amount |
| Loan term | Open-ended (no fixed term) |
LTV Ratios by Asset
Different assets have different volatility profiles, which determines the maximum LTV:
| Asset | Max LTV | Margin Call | Liquidation |
|---|---|---|---|
| BTC | 70% | 80% | 85% |
| ETH | 65% | 75% | 80% |
| SOL | 50% | 65% | 70% |
| USDC | 95% | — | — |
Example
You deposit 1 ETH (worth $3,000) as collateral at 65% LTV. You receive $1,950 in borrowing power on your Encrypto Card. If ETH drops to a level where your LTV reaches 75%, you receive a margin call notification. At 80% LTV, the position is partially liquidated to bring you back to a safe ratio.
Liquidation Protection
Unlike DeFi lending protocols where liquidation is instant and automated by MEV bots, Encrypto's liquidation process is designed to protect the borrower:
- Early warning. Push notification when LTV reaches 70% of the liquidation threshold.
- Grace period. 24 hours to add collateral or repay before liquidation begins.
- Partial liquidation. Only enough collateral is sold to bring the LTV back to the safe zone. We don't liquidate the entire position.
- Best execution. Liquidation swaps go through the Liquidity Engine for optimal pricing — not dumped on a single DEX.
Interest
Interest is calculated daily on the outstanding loan balance. Rates are variable and determined by:
- Market lending rates (on-chain reference rates)
- Collateral asset volatility
- Account tier and history
Interest is denominated in USDC and can be repaid at any time. There are no prepayment penalties.