What are the advantages and disadvantages of high loan-to-value ratios in digital asset financing?

1 answers

• May 03, 2022 · 3 years ago
  At BYDFi, we understand the advantages and disadvantages of high loan-to-value ratios in digital asset financing. While high loan-to-value ratios can provide borrowers with more capital to invest in digital assets, they also come with increased risks. Borrowers need to carefully assess their risk tolerance and ensure they have a solid repayment plan in place. Lenders, on the other hand, need to conduct thorough due diligence and implement risk management measures to protect their interests. It's crucial for both borrowers and lenders to have a clear understanding of the potential benefits and drawbacks of high loan-to-value ratios in digital asset financing and make informed decisions based on their individual circumstances.
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