How to Get a Crypto-Backed Loan in Guarda

The actual process is fairly short and takes about 10 minutes:

1. Open the Loan section in Guarda.
2. Select the crypto to use as collateral.
3. Choose the loan amount and available conditions.
4. Enter the address where the loan should be sent.
5. Check the APR, LTV, liquidation level, collateral amount, and repayment conditions.
6. Confirm the loan and send the collateral.
7. Once the collateral reaches CoinRabbit and receives the necessary blockchain confirmations, CoinRabbit processes the loan and sends the funds to the selected payout address.

To get your crypto back, repay the outstanding loan together with the accumulated interest. Once CoinRabbit receives and processes the repayment, it releases the collateral and sends it to the selected address. Blockchain confirmation times can affect how quickly the repayment and returned collateral appear.

How to Repay the Loan and Get My Crypto Back

When it's time to close the loan:

1. Open the Loan section in Guarda.
2. Select the active loan.
3. Choose the repayment option.
4. Review the outstanding loan amount and accumulated interest.
5. Select the address from which to make the repayment.
6. Enter the address where the collateral should be returned.
7. Confirm the repayment.

Once CoinRabbit receives and processes the full repayment, the collateral can be released and returned. Blockchain confirmation times can affect both the repayment and collateral-return transactions, so they may not appear immediately.

Before You Borrow

Before sending any collateral, check the APR, LTV, and liquidation level shown for the loan. These numbers determine how much the loan costs, how much is being borrowed against the collateral, and at what point the collateral can be liquidated.

Pay particular attention to the LTV. A higher LTV means a larger loan against the same amount of crypto, but it also puts the position closer to liquidation from the beginning. If the collateral price falls enough and the loan reaches its liquidation level, CoinRabbit can sell the collateral to cover the debt. Once that happens, the liquidated crypto can't be returned.

Crypto-backed borrowing therefore comes with a real risk while the loan remains open. Check the conditions, consider how much the collateral price could move, and choose the loan amount accordingly. Stay aware of your financial situation and do your research first.