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content.future.textFrequently Asked Questions
Definitions
Collateral refers to a certain amount of crypto, taken by the HEXN platform to secure the loan.
Loan amount refers to the amount of crypto that are to be returned to the HEXN platform (inlc. charged percentages).
LTV stands for Loan-to-Value. It’s the total value of your loan to the value of your collateral. The value is determined by the index price. For example, we want to borrow 21k USDT, our collateral is 1 BTC. Provided that the BTC price is 30k, LTV would be 70% (21k/30k*100%).
Loan liquidation occurs in the event, when the current Loan-to-Value (LTV) ratio reaches the set threshold (indicated as a liquidation price).
Liquidation price is the price, at which the HEXN platform liquidates the loan.
Repay option of the loan means, that the loan will be closed, and the collateral will be returned to the balance, provided that the loan amount is returned.
Liquidate option of the loan means, that the collateral used will be sold. A part of it will be used to cover (or repay) the loan, and the rest what’s left will be credited to the balance.
How loan liquidation works?
The liquidation process undermines a flow, where your collateral is sold to repay the loan borrowed. Liquidation occurs in the event, when the current Loan-to-Value (LTV) ratio reaches the set threshold (indicated as a liquidation price). This, in return, can be the result of a drop in the value of the collateral or an increase in the value of the borrowed assets due to accrued interest over time.
How to borrow a loan?
To borrow a loan from HEXN platform, please follow this simple steps:
open the page as shown in the pic below:
adjust the collateral
enter the amount you want to borrow
review the conditions (APY, liquidation price, etc)
borrow crypto
Important! There’s no loan duration, hence it remains active as long as the LTV does not go above the limit or until you manually close it.
How to manage my collateral and loan amount?
To borrow more funds or increase your collateral, please go to this page and use a pencil button to make necessary adjustments.
I want to repay the loan. How to I do that?
If you want to repay the loan, please go to this page:
Here you will find 2 buttons: 1) repay - it means, that you return the funds borrowed, and we return your collateral
2) liquidate - it means, that your collateral will be sold to repay the borrowed amount. If there's anything left after covering the amount taken, it will be returned to your available balance
What is your liquidation fee?
The fee depends on the crypto you want to borrow. You can check this information here: