> For the complete documentation index, see [llms.txt](https://docs.liqfinity.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.liqfinity.com/basics/challenges-with-existing-crypto-lending-platforms.md).

# Challenges with Existing Crypto Lending Platforms

The current crypto lending ecosystem faces significant limitations that prevent users from fully utilizing their assets. Key challenges include:

* **Low LTV Ratios**: Most platforms restrict Loan-to-Value (LTV) ratios, such as 50% for BTC/ETH or as low as 30% for altcoins and meme tokens, severely limiting borrowing potential.
* **High Liquidation Risks**: Market volatility often leads to forced liquidations, leaving borrowers with unexpected losses and limited control.
* **Limited Rewards for Liquidity Providers**: While existing platforms do offer incentives, they are typically small and fail to share significant revenue with users.
* **Limited Loan Duration**: Most platforms impose strict time limits on loans, forcing borrowers to repay within a set period or risk liquidation if market conditions deteriorate.
* **Complex Navigation**: Many platforms are difficult to navigate, making it challenging for users to access key features or understand the lending process.
* **Poor Support**: Customer support is often slow and unhelpful, leaving users without timely solutions to their issues.