GLOPEX / FINANCE EXPLAINED
Crypto lending: how collateral-backed borrowing works
Understand the difference between borrowing against crypto and lending out your assets, and the questions that matter before considering a crypto-backed loan.
Borrowing against crypto or lending it out?
A crypto-backed loan uses eligible digital assets as collateral for borrowing. Depending on the arrangement, the loan may be advanced in a traditional currency or a digital asset. The borrower owes repayments and the collateral can be at risk if the agreement’s conditions are not met.
Lending your crypto to another party in return for interest or yield is a different activity. It exposes you to that party’s ability to repay and to the arrangement’s custody and withdrawal risks. GLOPEX’s website accepts borrowing enquiries; it does not offer a crypto savings or yield account.
What does loan-to-value mean?
Loan-to-value, or LTV, compares the amount borrowed with the lender’s accepted collateral value. It is usually expressed as: outstanding loan ÷ collateral value × 100. A fall in collateral value can increase that ratio even when the borrowing has not changed.
Check which valuation source, currency, frequency and deductions the provider uses. The opening LTV, margin-call threshold and liquidation threshold are different terms; no particular LTV is promised by GLOPEX.
Margin calls and liquidation
A margin call may require additional collateral or a reduction in borrowing. Liquidation means pledged assets are sold or otherwise realised under the agreement. Crypto markets can move quickly, so do not assume you will have a long notice period or that a provider will wait for prices to recover.
Ask how you receive notices, whether partial repayment is possible, when liquidation can occur and whether you could still owe money after collateral is realised.
Who controls your collateral?
Identify the legal counterparty and custodian, where assets are held, who controls transfers and whether collateral can be reused or lent onwards. Ask what happens during a platform outage, insolvency, dispute or early repayment. Terms can differ materially between arrangements.
An initial GLOPEX enquiry does not require a transfer of crypto. Never submit private keys, seed phrases or wallet passwords through an enquiry form.
Compare the complete cost
Ask for interest, arrangement or intermediary fees, custody charges, conversion costs, repayment charges and any liquidation costs in writing. Check the currency of repayment and how interest accrues. A headline rate alone does not show total cost. GLOPEX may charge a fee; any applicable fee will be discussed before you decide whether to proceed.
Country and borrower eligibility
Residence, borrower type, intended use, asset ownership, collateral location and applicable rules affect eligibility. Enquiries involving the UK, USA, Canada or UAE need a specific review. Do not assume that a facility advertised in one market is available in another.
For UK consumer context, see the FCA’s warning on cryptoasset investment and lending risks. For its published regime information, see the FCA cryptoasset policy overview. These links do not imply FCA approval of GLOPEX or a product.
Common questions
Is borrowing against crypto the same as selling it?
No, but collateral may still be sold under the loan terms. Legal ownership, enforcement and tax consequences depend on the actual arrangement. Take advice appropriate to your circumstances.
Does collateral mean no checks are needed?
No. Identity, ownership, source of funds, borrower eligibility and other checks may be required. Do not assume a loan is available without assessment because it is secured.
What information should I prepare?
Start with the asset and approximate holding value, amount and currency required, borrower type, country and purpose. Share only a high-level outline initially; discuss a secure route for supporting documents.