SHSS on Nostr: It’s less risky from the pov that price will go up so the LTV of the loan will go ...
It’s less risky from the pov that price will go up so the LTV of the loan will go down as price runs up so liquidation is unlikely.
If you take a loan at the top ($1M) then you’ll have to add more and more collateral as the price corrects and you risk getting liquidated.
One thing to note tho is that you would need to put up more sats now to borrow X amount of dollars than you would at $1M. So if the platform you’re using rugs then you’ll lose more sats now than you would at $1M
Published at
2024-06-04 16:57:32Event JSON
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"content": "It’s less risky from the pov that price will go up so the LTV of the loan will go down as price runs up so liquidation is unlikely. \n\nIf you take a loan at the top ($1M) then you’ll have to add more and more collateral as the price corrects and you risk getting liquidated.\n\nOne thing to note tho is that you would need to put up more sats now to borrow X amount of dollars than you would at $1M. So if the platform you’re using rugs then you’ll lose more sats now than you would at $1M",
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