SmartCredit.io
ApplicationTwitterTelegramLinked In
  • SmartCredit.io
  • Fixed-term/Fixed-rate Borrowing/Lending
    • How are loan requests matched?
    • Credit Lines
    • Fixed-Income Funds
    • Fixed Loan Term
    • Fixed Interest Rate
    • Efficient use of Collateral
    • Positions Monitoring System
    • No Bank Run Risks
    • Collaterals
    • Collateral Ratios
    • Liquidations
    • Loss Provision Fund
    • Oracles Integration
    • Fiat On-Ramp/Off-Ramp
    • Borrow/Lend SDK and Widgets
      • Use Cases
      • Borrow/Lend SDK
        • Borrowing SDK
          • Authentication
            • Auth Challenge
            • Authenticate
          • Validators
          • Collateral Ratio
          • Credit Line
            • Get Credit Lines
            • Create Credit Line
          • Loan Request
            • Calculate Collateral Amount
            • Sign Loan Request
            • Create Loan Request
          • View Loans
            • All Loans
            • Single Loan
          • Deposit Collateral
            • Deposit collateral for ETH
            • Deposit Collateral for ERC20
          • View Collateral
            • Locked Collateral
            • Unlocked Collateral
          • Repay Loan
            • Repay ETH Loan
            • Repay ERC20 Loan
          • Terminate Loan
          • Liquidation
            • Liquidation Probability
            • Increase Collateral for ETH
            • Increase Collateral for ERC20
        • Lending SDK
          • Authentication
            • Auth Challenge
            • Authenticate
          • Create FIF
          • Get FIF List
          • Deposit in FIF
            • Deposit ETH
            • Deposit ERC20
          • Withdraw FIF
          • Terminate FIF
      • Borrow/Lend UI Widgets
        • WordPress Integration
          • Borrowing Widget WordPress Plugin
            • Integration
          • Lending Widget WordPress Plugin
            • Integration
        • JS Integration
          • Borrowing Widget Integration
          • Lending Widget Integration
  • Fixed-term/Fixed-rate Leveraged Lido staking
    • Start leveraged staking
    • Regular finishing
    • Early finishing
    • Positions Monitoring
    • Platform Fees
  • How to earn?
    • Earning via Rewards
    • Earning via Fixed-Term/Fixed-Rate
    • Earning via Leverage Lido Staking
  • Staking and Rewards
    • Borrower and Lender Bonus Rewards
    • Staking
    • Gasless Re-staking
    • Integrator Rewards
    • Affiliate Program
  • Security
    • Audits
    • AI-based Crypto Transactions Monitoring
    • Bug Bounties
  • Regulations
    • Peer-to-Pool-to-Peer Business Models
    • Peer-to-Peer Business Models
    • Offering Access to the Securities Products
    • Crypto Transactions Monitoring
  • Roadmap
    • Release 1.0 - Foundation
    • Release 1.1 - Fixed Income Funds
    • Release 1.2 - Credit Lines
    • Release 1.3 - UI & AI
    • Release 1.4 - Fixed Rate Leveraged Lido Staking
    • Release 1.5 - Simple and Advanced Borrowing
    • Release 1.6 - Islamic Banking
  • Our Token
  • Partners
  • Revenue Model
  • FAQs
  • Tutorials
  • Social Media Channels
  • AI-driven Decentral Autonomous Bank
Powered by GitBook
On this page
  • Tutorial videos:
  • Further info
  1. Fixed-term/Fixed-rate Borrowing/Lending

Collateral Ratios

Collateral ratio shows how much collateral should a borrower use to borrow. All loans are over-collateralized. If collateral ratio will his the liquidation threshold, then the loan is liquidated.

PreviousCollateralsNextLiquidations

Last updated 6 months ago

Collateral Ratios

SmartCredit.io supports circa 22 collateral assets (see the full list in the "")

  • wETH, wBTC, and ETH

  • ERC20 tokens

  • Partners ERC20 tokens

  • Stablecoins

  • Our own SMARTCREDIT token

The collateral ratio for a specific loan depends on:

  • The loan term—the longer the loan term, the higher the collateral ratio

  • Trust score—the better the trust score, the better the collateral ratio for the borrower

  • The collateral asset—assets with higher volatility have higher collateral ratios and vice versa

Why is the collateral ratio depending on the loan term? It's because:

  • If one borrows for a longer-term, one needs more collateral because the asset price swings grow with the price.

  • If one borrows for a shorter term, one needs less collateral.

SmartCredit.io calculates the collateral ratio based on the liquidation probabilities. The system proposes the collateral ratio, which results in the 5% liquidation probability for the collateral asset on the given loan term.

The borrower can still increase the collateral ratio if he wishes to have a lower probability of getting liquidated. The borrower can add collateral to the running loans during the loan term too.

If the collateral value to the loan sinks to the Liquidation Ratio OR if the borrower is not paying back the loan, then the loan is liquidated. See details in the "".

Tutorial videos:

Further info

The borrower can subscribe to the and receive notifications when the risk of liquidations increases. These notifications are sent when the probability of liquidation grows to 15%. The borrower can then either ignore this notification, she can add more collateral, or can pay back parts of the loan.

The list of supported collaterals and their liquidation ratios is in the "".

Video ""

Video ""

Video ""

Video ""

Video ""

Video ""

Video ""

Video ""

Video ""

Video ""

SmartCredit.io:

Twitter:

Telegram:

Collaterals section
Liquidations section
Positions Monitoring System
Collaterals section
SmartCredit.io intro
How to borrow?
How to borrow 1'000 USD stablecoins?
How to connect your wallet with notifications?
How to earn stable recurring income with Fixed Income Funds?
How to mix variable interest rate and fixed interest rate?
How to earn 50% + with borrowing?
How to earn 30% + with lending?
How to earn 15%+ on your collateral value?
How to earn with staking?
https://SmartCredit.io
https://twitter.com/Smartcredit_io
https://t.me/SmartCredit_Community