# Overcollateralized Loans

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Phase 2 feature - currently on hold. This page will be updated when the feature ships.
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## Overview

Standard DeFi-style collateralized loans with Bound's UX - deposit BTC as collateral, borrow stablecoins up to a defined LTV ratio.

Unlike liquidation-free loans, overcollateralized loans include standard liquidation mechanics if your collateral ratio falls below the threshold.

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**VERIFY** - LTV ratios, liquidation thresholds, and interest rates to be confirmed with team.
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