Payment of Hourly Fees

To maintain a loan, borrowers must have enough funds in their wallet to cover hourly fees. If funds are insufficient, the platform gradually liquidates a portion of the collateral to cover unpaid fees.

Unlike traditional platforms that fully liquidate positions after sudden price swings, Liqfinity’s gradual approach gives borrowers more time to react, offering a more user-friendly solution during market fluctuations.

Note: If a borrower uses collateral (e.g., 1 BTC) and fails to provide funds to cover fees, the platform will gradually sell a portion of the BTC to cover the unpaid fees.

This means the borrower may only receive a reduced amount of their BTC back while still being required to repay the full value of the loan.

Alternatively, the borrower may choose not to repay the loan and keep the full 100% LTV amount in USDT, effectively treating it as a sale of their collateral.