Loan Creation

You can create a loan by going to the web app and clicking on the NFT you want to use as collateral. The collateral has to be approved and can then be used as collateral for a new loan. Only supported collections NFTs' can be used as collateral for a loan.

Maximum borrowable amount

Let's suppose you want to take out a loan using CryptoPunk #45. Let's also suppose that:

• leNFT prices this asset at 100 ETH

• the CryptoPunks collection has a maximum LTV of 60%

• the CryptoPunks collection has a liquidation threshold of 80%

This means that if you create a loan using CryptoPunk #45 as collateral you can borrow a maximum of 60 ETH and your loan is not at risk of being liquidated right up until your debt (principal + interest) reaches 80 ETH.

Health level

Whenever you create a loan in leNFT there is a risk you can lose your collateral. This can happen whenever the debt on loan is higher than the maximum loan-to-value permitted for your collateral. In order to avoid falling into liquidation territory regularly check your loan's health level. If the health level reaches 0% your loan is at risk of being liquidated.