❌Defaults

Time-based loans

Debita does not have the industry standard price-based liquidations. Our loans are time-based.

A user’s collateral is only defaulted if the owed amount (borrowed + interest) isn’t paid in full by the end of the agreed upon loan’s length, in that case, the borrower effectively defaults on the loan and forfeits 100% of their collateral, which the lender can claim.

That means that users won’t get liquidated at any point, regardless of LTV fluctuation and ratio between collateral and lent tokens.