NYYU Loan
Access liquidity with crypto-backed loans
NYYU Loan Overview
NYYU Loans allow you to borrow cash or stablecoins using your cryptocurrency as collateral - without selling your assets. This is perfect for accessing liquidity while maintaining exposure to your crypto holdings during bull markets, covering emergency expenses, or leveraging your portfolio for additional investments.
Instant Liquidity
Borrow Against Your Crypto
Access up to 50% of your crypto value as a loan without selling. Keep your Bitcoin, borrow cash, maintain upside potential.
Key Features
No Selling Required
Maintain ownership and upside potential of your crypto while accessing cash or stablecoins.
Up to 50% LTV
Borrow up to 50% of your collateral value (Loan-to-Value ratio) depending on the asset.
Competitive Rates
Interest rates from 5-15% APR, significantly lower than credit cards or personal loans.
Multiple Collateral Types
Use BTC, ETH, and other major cryptocurrencies as collateral for your loan.
Flexible Terms
Choose loan duration from 7 days to 365 days with options for early repayment without penalties.
Instant Funding
Receive your loan funds immediately after collateral deposit - no waiting period.
How Crypto Loans Work
You deposit cryptocurrency (like BTC or ETH) into a secure smart contract as collateral. This collateral is locked but remains yours.
Example: Deposit 1 BTC worth $60,000
Based on your collateral value and chosen LTV ratio, you receive cash or stablecoins. Funds arrive instantly in your wallet.
Example: Borrow $30,000 USDT (50% LTV)
Monitor your loan health ratio. If collateral value drops and LTV exceeds maximum, you must add more collateral or face liquidation.
Health: 75% (Safe) | 85% (Warning) | 90%+ (Danger)
Repay the loan amount plus accrued interest anytime before maturity. Upon full repayment, your collateral is immediately unlocked.
Example: Repay $30,000 + $1,200 interest → Receive 1 BTC back
Understanding LTV & Liquidation
Loan-to-Value (LTV): The ratio of your loan amount to collateral value. Starting at 50% means you borrow $50,000 against $100,000 collateral.
Liquidation Threshold: When your LTV reaches 80-90% (varies by asset), your collateral gets automatically sold to repay the loan. You lose your crypto AND don't get any excess value back.
Example Liquidation Scenario:
• You deposit 1 BTC at $60,000 and borrow $30,000 (50% LTV)
• You lose your Bitcoin and potentially owe liquidation fees
Prevention: Always maintain LTV below 70%. Add collateral immediately when you receive margin call warnings. Set up price alerts for your collateral assets.
Prerequisites
Step-by-Step Guide
Step 1: Access Loan Dashboard
1
- •Click "Loan" or "Borrow" from the main navigation menu
- •View available loan products and current interest rates
- •Check your eligible collateral assets and their values
- •Review your active loans if you have any existing positions
Use the built-in calculator to plan your loan before applying
Step 2: Configure Your Loan
2
- Choose which cryptocurrency you want to use as collateral
- Review the LTV ratio for that asset (varies by volatility)
- Check current interest rate for the chosen collateral
- Verify you have sufficient balance in your wallet
- •Enter the amount you want to borrow (in USDT, USDC, or other assets)
- •System calculates required collateral based on selected LTV
- •Select loan duration: 7, 30, 60, 90, 180, or 365 days
- •Longer terms may have higher interest rates but more stability
- •Review total interest you'll pay over the loan period
Never borrow the maximum LTV. If you can borrow up to 50%, only borrow 30-35%. This gives you a safety buffer if collateral value drops. The extra room prevents liquidation and lets you sleep well at night.
Step 3: Deposit Collateral
3
- Review the loan summary including all terms and conditions
- Verify collateral amount, loan amount, LTV ratio, and interest rate
- Check liquidation threshold and understand the risks
- Accept terms and conditions (read them carefully!)
- Click "Deposit Collateral" to lock your assets
- Collateral is transferred to smart contract escrow
- Transaction confirmation appears on screen
Secure Custody
Your crypto is held in audited smart contracts, not controlled by NYYU directly
Still Yours
You retain ownership - the crypto is locked, not sold or transferred permanently
Price Exposure
You maintain full exposure to price appreciation (and depreciation) of the collateral
Step 4: Receive Loan Funds
4
- •Loan funds are instantly transferred to your wallet
- •Receive USDT, USDC, or other stablecoins (your choice)
- •Can withdraw to external wallet or bank account
- •Interest starts accruing immediately
- •Loan details appear in your active loans dashboard
Step 5: Monitor Loan Health
5
- •Current LTV: Should always stay below 70% for safety
- •Collateral Value: Track real-time price of your locked crypto
- •Health Ratio: Green (safe), Yellow (warning), Red (danger)
- •Accrued Interest: See how much you owe so far
- •Days Remaining: Time until loan maturity
- •Liquidation Price: Price at which you'll be liquidated
Healthy (LTV below 70%)
Your loan is safe. No action needed. Continue monitoring regularly.
Warning (LTV 70-80%)
Margin call zone. Consider adding collateral or partially repaying the loan soon.
Critical (LTV above 80%)
URGENT! Add collateral immediately or face liquidation. You may have 24-48 hours.
- •Enable email/SMS notifications for LTV changes
- •Set custom alerts at 60%, 70%, and 80% LTV
- •Configure price alerts for your collateral asset
- •Download the mobile app for push notifications
Step 6: Manage Your Loan
6
- Navigate to your active loan
- Click "Add Collateral"
- Enter additional crypto amount to deposit
- Review new LTV ratio after addition
- Confirm transaction
- Collateral is added instantly, LTV drops immediately
- Go to active loan dashboard
- Click "Partial Repayment"
- Enter amount to repay (minimum $100 typically)
- See updated LTV after partial repayment
- Interest savings from reduced principal are calculated
- Confirm repayment from your wallet
- Loan balance updates immediately
- •Before maturity, request term extension
- •Pay accrued interest to date
- •Select new term length (30, 60, 90 days)
- •May incur extension fee (typically 1-2%)
- •New interest rate applies based on current market
Step 7: Repay and Reclaim
7
- Navigate to your active loan
- Click "Repay Loan" or "Full Repayment"
- System calculates total amount due (principal + interest)
- Review repayment summary and final costs
- Ensure sufficient funds in your wallet
- Confirm full repayment transaction
- Loan is marked as completed
- Collateral is automatically unlocked and returned to your wallet
- Receive confirmation and loan summary
Repay anytime before maturity
No prepayment penalty
Save on interest costs
Repay on due date
Set calendar reminder
Auto-extend option available
Common Mistakes to Avoid
Borrowing Maximum LTV
Never borrow at 50% LTV. If your collateral drops 20-30% (common in crypto), you'll face liquidation. Always borrow at 30-40% LTV maximum to give yourself breathing room. The extra liquidity isn't worth losing all your collateral.
Not Monitoring During Volatility
Check your loan health multiple times per day during volatile markets. Set up price alerts and LTV notifications. Many users get liquidated because they "forgot" to check their position during a crash.
Using Loans for Leverage Trading
Taking a loan to buy more crypto is extremely risky. If prices drop, you'll need to repay the loan AND face losses on your new purchases. Only use loans for legitimate liquidity needs, not speculation.
Ignoring Margin Calls
When you receive a margin call warning (usually at 70-75% LTV), act immediately. Don't wait "to see if the price recovers." Add collateral or repay within 24 hours. Waiting = liquidation.
No Repayment Plan
Don't take a loan without knowing exactly how and when you'll repay it. "I'll figure it out later" leads to defaults. Have the repayment funds ready or scheduled before taking the loan.
Borrowing for Daily Expenses
Crypto loans are for strategic liquidity needs, not paying bills. The interest rates (8-15% APR) and liquidation risk make this a terrible option for everyday expenses. Use traditional credit or savings instead.
Understanding Liquidation
Liquidation Process Explained
When it happens: When your LTV ratio exceeds the liquidation threshold (typically 85-90%), the platform automatically sells your collateral to repay the loan.
What you lose: Your entire collateral is sold. You receive NOTHING back, even if the collateral value exceeds the loan amount. Any excess goes to the platform as liquidation fees (usually 10-15%).
Timeline: Liquidation is usually automatic and instant. There's no grace period or opportunity to fix it once the threshold is crossed. Some platforms give a 24-48 hour margin call window before liquidation.
- Platform takes $50,000 loan + $3,000 interest + $5,000 liquidation fee
- You get NOTHING. You lost 2 BTC and still owe potential fees if sale didn't cover costs
Prevention: Keep LTV under 60%, set aggressive price alerts, maintain emergency collateral reserves, check position daily during volatility, and add collateral at first warning sign.
Pro Tips for Smart Borrowing
If available, use stablecoins as collateral with 90% LTV. No liquidation risk from price volatility, and you can borrow against assets you weren't holding for appreciation anyway.
Always keep 20-30% extra collateral in your wallet ready to deposit instantly during flash crashes. This emergency fund has saved countless loans from liquidation.
Take loans during bear markets when you need liquidity but don't want to sell at losses. Repay during bull markets when your collateral has appreciated and you have profits to cover the loan.
Before taking a loan, calculate total cost: (loan amount × interest rate × time) + potential liquidation risk. Compare this to just selling a small portion of your crypto - sometimes selling 20% is better than risking 100%.
Next Steps
Use your loan proceeds to earn interest through NYYU Save and offset borrowing costs
Learn About Savings
Wallet Management
Learn to manage collateral assets and loan repayment from your NYYU wallet
Setup Wallet
Use borrowed funds strategically for trading opportunities (only for experienced traders)
Learn Trading
Need Help?
Crypto loans involve significant risk. Our support team can help you understand the risks, choose appropriate LTV ratios, and set up proper monitoring. Don't hesitate to reach out before taking your first loan.