Borrow without selling,
but size decides your sleep.
You like your bitcoin and suddenly need cash. A crypto-backed loan lets you borrow against it instead of selling. It works much like a mortgage, except the 'house price' can move 10% in a day. Here is how it works and, most importantly, how much you can borrow before liquidation gets close.
What is an OKX crypto loan?
You pledge BTC, ETH or other assets and borrow USDT or other coins. You keep the price exposure on your collateral, and it is released when you repay. OKX Flexible Loan lets you borrow and repay any time, with interest charged hourly.
| Situation | Suitable? | Why |
|---|---|---|
| Short-term cash need, repay within weeks | Yes | Avoids selling at a bad moment |
| Borrow USDT to buy more coins | No | That is leverage; losses stack on the way down |
| No reliable way to repay | No | Interest keeps adding up until liquidation |
| Borrow USDT to earn yield elsewhere | Careful | The yield can drop below the loan rate |
What is LTV?
Loan-to-value (LTV) = loan amount ÷ collateral value. Pledge $10,000 of BTC and borrow 4,000 USDT, and your LTV is 40%. When the price falls, your collateral shrinks and LTV rises.
| Level | Around | What happens |
|---|---|---|
| Maximum initial LTV | ~80% | The most you can borrow |
| Margin call | ~88% | App and email alerts to add collateral or repay |
| Liquidation | ~97% | Collateral is sold to repay the loan |
OKX applies a discount rate to collateral: the more volatile or illiquid the coin, the bigger the haircut, so smaller coins let you borrow less and sit closer to liquidation.
Can a crypto loan be liquidated? How much is safer?
Yes. Pledge 0.1 BTC at $84,000, roughly 8,400 USDT of collateral (ignoring the discount rate for simplicity):
| Borrowed | Starting LTV | BTC price at liquidation | Drop from today |
|---|---|---|---|
| 1,500 USDT | ~18% | ~$15,500 | ~82% |
| 3,000 USDT | ~36% | ~$30,900 | ~63% |
| 5,000 USDT | ~60% | ~$51,500 | ~39% |
| 6,500 USDT | ~77% | ~$67,000 | ~20% |
A 20% monthly drop in bitcoin is not rare, so borrowing the maximum is a bet that no big drop comes. A calmer approach keeps the starting LTV at 30–40% and sets price alerts.
The most dangerous pattern is pledging BTC, borrowing USDT and buying more BTC. It feels great on the way up; on the way down both your collateral and your new coins fall, LTV climbs faster, and liquidation comes sooner.
How is crypto loan interest calculated?
Flexible Loan rates float, are shown as an annual rate and accrue hourly:
Interest ≈ amount × annual rate × hours borrowed ÷ 8,760
| Annual rate | 7 days | 30 days | 1 year |
|---|---|---|---|
| 5% | ~2.9 USDT | ~12.3 USDT | ~150 USDT |
| 10% | ~5.8 USDT | ~24.7 USDT | ~300 USDT |
| 20% | ~11.5 USDT | ~49.3 USDT | ~600 USDT |
USDT borrowing rates rise sharply when markets are hot and everyone borrows to buy. Interest is added to your debt, which slowly pushes LTV up.
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How to repay and get your collateral back
- Repay any time, in part or in full; interest is paid first.
- Add collateral after a margin call to bring LTV down.
- Withdraw collateral once repaid, or partly while LTV allows.
- Repay with collateral where supported, which effectively sells some of it.
This is different from margin borrowing inside your trading account, which exists to fund trades and concentrates risk further.
Crypto loans
FAQ.
01How do I borrow on OKX?
Search for Loan in the app, choose the coin to borrow and the collateral, enter the amount, check LTV and rate, and confirm. Borrowed funds arrive in your funding account.
02Can a crypto loan be liquidated?
Yes. If prices fall and LTV reaches the liquidation level, collateral is sold to repay the loan. Smaller loans sit further from that line.
03What does LTV mean?
Loan amount divided by the discounted value of your collateral. Higher is riskier: you get an alert at the margin-call level and liquidation at the top level.
04How is interest charged?
OKX Flexible Loan shows an annual rate that floats with demand and accrues hourly. You can repay any time.
05Can I get cash without selling my crypto?
Yes, by borrowing USDT against BTC or ETH and repaying later. It suits short, well-planned needs, not long-term borrowing or buying more.
06Is it OK to borrow money to buy crypto?
It is not recommended. Whether you borrow against your coins or use credit cards and loans, leverage magnifies losses when prices fall.
Finished this one?
Here is what to read next.
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Whether it can lose money, how to pick a target price, why the APR is so high, and whether shark fin protects your principal. Includes a settlement calculator.
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Tools · Fear and greed indexWhich crypto market tools matter?
Fear and Greed Index, liquidation data, funding rates, whale alerts and the data already inside the OKX app.
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