> For the complete documentation index, see [llms.txt](https://docs.libre.org/libre-docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.libre.org/libre-docs/core-features/overview.md).

# Borrowing

## Overview

Libre allows you to borrow USDT using Bitcoin as collateral without giving up custody of your BTC. Each loan creates a unique vault address where your Bitcoin is held separately from all other borrowers.

## How Borrowing Works

### Step 1: Choose Your Pool

Select from available lending pools with different terms and rates. Each pool has a fixed APR set by lenders, ranging from lower rates for shorter terms to higher rates for longer terms.

View current pool availability and rates at [defi.libre.org/borrow](https://defi.libre.org/borrow).

### Step 2: Deposit Bitcoin Collateral

1. Connect your wallet to [defi.libre.org/borrow](https://defi.libre.org/borrow)
2. Your loan gets assigned a **unique vault address**
3. Send your Bitcoin collateral to this dedicated address
4. Your Bitcoin remains in this segregated vault throughout the loan

### Step 3: Receive USDT

* Choose your loan amount (typically 50% LTV)
* Receive USDT directly to your wallet
* Start using your borrowed funds immediately

### Step 4: Monitor and Repay

* Track your LTV ratio in real-time
* Add collateral if Bitcoin price drops — enough to keep your LTV below 70%
* Repay anytime to unlock your exact Bitcoin

## Liquidation Protection

Libre provides **transparent liquidation rules** with a 72-hour buffer:

| Loan-to-Value (LTV)          | Status           | Action Required                                                    |
| ---------------------------- | ---------------- | ------------------------------------------------------------------ |
| Up to 70%                    | Safe             | Monitor normally                                                   |
| 70-80%                       | Warning          | Lower your LTV; once the 80% timer starts you must reach below 70% |
| 80%+                         | Liquidation Risk | 72 hours to act                                                    |
| After 72h, if LTV still ≥70% | Liquidation      | Automatic execution                                                |

## Key Benefits

* **Segregated Collateral**: Your Bitcoin stays in its own vault address
* **No Rehypothecation**: Your BTC is never lent out or used for other purposes
* **Transparent Process**: All vault addresses are publicly auditable
* **Fixed Rates**: Know exactly what you'll pay upfront
* **72-Hour Buffer**: No surprise liquidations

## Example Loan

**Scenario**: Borrow from the 90-day, 11% APR pool

1. **Collateral**: Deposit 0.2 BTC ($20,000 at $100k/BTC)
2. **Loan Amount**: Borrow $10,000 USDT (50% LTV)
3. **Interest**: Pay 11% APR = $275 total interest over 90 days
4. **Liquidation**: Triggered if Bitcoin drops below $62,500 (80% LTV)
5. **Repayment**: Pay back $10,275 to unlock your 0.2 BTC

## Getting Started

Ready to borrow? Visit [defi.libre.org/borrow](https://defi.libre.org/borrow) to:

1. Connect your wallet
2. Choose a lending pool
3. Deposit collateral to your vault
4. Receive USDT and start using it

## FAQ

**Q: What happens to my Bitcoin during the loan?** A: Your Bitcoin stays in a dedicated vault address that only you can access upon repayment. It's never pooled or used for other purposes.

**Q: Can I add more collateral if Bitcoin price drops?** A: Yes, you can add more Bitcoin to your vault address anytime to improve your LTV ratio.

**Q: What if I want to repay early?** A: You can repay your loan anytime. Interest is calculated based on the actual time borrowed.

**Q: How do I know my vault address?** A: Your unique vault address is provided when you create the loan and is always visible in your dashboard.