Risk education8 min read
Daily APY and Crypto Loan Risks Explained
APY previews and loan calculators are planning tools. They are useful only when users understand lockups, collateral risk, LTV, margin calls, and program eligibility.
APY projections are not guarantees
Projected earnings depend on program terms, custody, liquidity, counterparty risk, fees, and market conditions. A calculator should never be treated as a promise of return.
Collateral can be liquidated
Crypto-backed loans depend on collateral value. If market prices fall and LTV rises, a borrower may need to add collateral, repay part of the loan, or face liquidation under approved terms.
Eligibility controls protect the product
KYC, jurisdiction, compliance, and account limits determine which users can access financial programs. Product pages should make those limits clear before users apply.