Manual Borrowing Against Crypto Collateral: LTV, Health, and Liquidation
Summary
The document explains manual borrowing of USDC or USDT against supplied HYPE or BTC collateral for supported Hyperliquid account types. Borrow capacity is calculated from collateral quantity, oracle price, and the asset's loan-to-value ratio, with contributions added across collateral assets. The guide distinguishes collateral that supports borrowing from supplied stablecoins, which earn interest but do not increase manual borrowing capacity. Borrowing accrues interest, while available liquidity and account or global caps can constrain the amount borrowed.
It defines health factor as LTV-weighted collateral value relative to debt and describes partial liquidation thresholds, estimated liquidation prices, and reasons an estimate may display as unavailable. The examples illustrate the calculations under stated price assumptions. These estimates can change with prices, balances, and interest; multi-asset estimates hold other prices fixed, and on-chain rounding may differ. A displayed unavailable liquidation price does not mean the account is free of liquidation risk.
Key ideas
- HYPE and BTC collateral support manual borrowing of USDC or USDT at asset-specific LTVs.
- Borrow capacity is the sum of each supplied collateral asset's value multiplied by its LTV.
- The health factor compares LTV-weighted collateral value with outstanding debt.
- Partial liquidation risk rises as collateral prices fall, borrowing grows, collateral is withdrawn, or interest accrues.
- Liquidation price estimates rely on assumptions and may not reflect simultaneous price declines across collateral assets.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.