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  1. Home
  2. FAQ
  3. What Are the Risks of Borrowing Against Crypto on Nexo?

What Are the Risks of Borrowing Against Crypto on Nexo?

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  • madmaxM Offline
    madmaxM Offline
    madmax
    wrote last edited by
    #1

    fa301d2b-e914-42d8-ae71-1887d4f8458f-image.png

    Borrowing on Nexo comes with risks. If the value of your collateral falls below a certain threshold, your loan can be partially or fully liquidated to protect the platform. Volatility in crypto markets can trigger margin calls, so monitoring your LTV ratio is crucial.

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    • Abdul KhanA Offline
      Abdul KhanA Offline
      Abdul Khan
      wrote last edited by
      #2

      Leveraging crypto always carries liquidation risks—plan carefully.

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      • Nahid HossenN Offline
        Nahid HossenN Offline
        Nahid Hossen
        wrote last edited by
        #3

        Market dips can hit hard if collateral values fall too fast.

        Nike

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