Tips to Mitigate Risk in Crypto Lending and Borrowing: How Nolus Provides Safety and Security

<h1>Loan Liquidations and Price Drops</h1> <p>One prominent risk in crypto lending is the potential for loan liquidations when asset prices experience significant drops. Cryptocurrency markets can be highly volatile, and sudden price fluctuations can lead to borrowers&rsquo; collateral values falling below the required thresholds. To address this risk, Nolus recommends a few proactive measures that empower borrowers to manage their positions effectively:</p> <p>First, users are encouraged to keep their Loan-to-Value (LTV) ratio low, which means maintaining a higher collateral value relative to the borrowed amount. By doing so, borrowers create a cushion against price drops and reduce the likelihood of triggering liquidations. Additionally, Nolus provides borrowers with real-time information about their LTV ratio, enabling them to monitor and adjust their collateralization levels as needed in an intuitive, easy-to-use UI.</p> <p><a href="https://medium.com/nolusprotocol/tips-to-mitigate-risk-in-crypto-lending-and-borrowing-how-nolus-provides-safety-and-security-a096d445b11b"><strong>Read More</strong></a></p>