Borrowing

Learn how to borrow USDT against your Bitcoin collateral with segregated vaults and transparent liquidation rules.

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.

Step 2: Deposit Bitcoin Collateral

1. Connect your wallet to 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 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.