Borrow on VALR – VALR Help Center

What is VALR Borrow?

VALR Borrow is a feature that allows you to borrow funds against the assets you already hold. Instead of selling your assets, which may cause you to miss out on future price growth, you can lock them up as collateral and receive a loan instantly.

How Does it Work?

Navigate to Borrow:

a. On the website, this is found on the top navigation bar under “Finance”, or within the Wallets page.

b. On the app, this can be found on the Homepage.
Choose your asset and risk appetite: Select the crypto asset that you wish to borrow. We offer three risk appetites to suit different users. A lower LTV indicates a lower risk of liquidation.
Deposit collateral: You provide a specific amount of assets (such as ZAR, Bitcoin or Ethereum), to secure your loan. Think of collateral as security for the loan; it ensures the loan is backed by real value.
a.To auto-fill your collateral to the nearest value, click on “Auto”.
Receive your loan: VALR instantly credits the borrowed funds to the account you are currently using. This can be the main account or any subaccount. The borrowed funds are now available for you to use as you wish.
Repay and unlock: Once you repay the borrowed amount plus any accrued interest, your locked asset collateral is returned to you in full. You can repay the loan in two ways:
a. Repay via transfer - this allows you to transfer any available funds from your other subaccounts to repay the loan in the required amount.
b. Sell some collateral* - this allows you to instantly use your locked collateral and trade it for the borrowed asset to repay the loan.

*Note: When selling your collateral, VALR utilises the trading feature on the VALR Spot Exchange in accordance with your fee tier. Trading fees apply. In the event that there is no direct pair between the loan currency and collateral currency, trading fees will be charged on each pair that is required to convert the collateral into the loan currency.

What is collateral?

Collateral refers to the assets you lock up as a guarantee that you’ll repay the loan. It’s held while your loan is active and returned once you repay.

Note: Different assets have different weightings, and therefore affect the final collateral value differently. Learn more about weightings.

Can I choose multiple collateral assets?

Yes. You can do so by clicking “Add collateral” and then adjusting your collateral accordingly.

How LTV affects your loan

Your Loan-to-Value (LTV) ratio is the ultimate health indicator of your loan.

Your LTV = Your loan amount / Your weighted collateral value

A lower LTV means a healthier loan. A higher LTV brings you closer to liquidation.

If your collateral value goes up: Your LTV drops, making your loan safer.
If your collateral value goes down: Your LTV rises, meaning your loan is becoming riskier relative to your collateral.

Learn more about LTV.

Choosing your strategy: Risk appetites

Asset prices move fast, so we offer predefined options based on how much risk you are comfortable with. This is measured by your Loan-to-Value (LTV) ratio, the percentage of your collateral's value that you are borrowing.

Understanding liquidation risk

If the market drops significantly and your LTV reaches the liquidation level, our automated risk engine will begin liquidation.

What is liquidation? To protect the platform, VALR will automatically sell a portion of your collateral to repay your loan.
How to avoid it: To keep your loan healthy, your LTV should be below the 95% threshold*. You can do this by choosing a lower initial risk appetite (like Conservative or Balanced) and monitoring your account during market drops.

Additional information about liquidation can be found in the Margin Trading Guide here.

*As at 23 July 2026, VALR offers 10x leverage on spot margin. This translates to a liquidation level of roughly 95% LTV. The maximum leverage can be changed on the Exchange with limited notice, per our Earn Terms of Service.

Managing your loan: Adjusting collateral

You can actively manage your LTV at any time:

Lower your risk: Add more collateral to your loan. This instantly drops your LTV and reduces your liquidation risk.
Withdraw collateral: If your collateral has grown significantly in value or if your LTV is low, you can safely withdraw a portion of your locked collateral back into your account.

How to use funds from a loan

Once your loan is approved, the funds are instantly deposited into your VALR wallet within the main account or subaccount you are in. From there, you have complete freedom to either withdraw, trade, or allocate the funds in Earn:

Navigate to your VALR Wallet.
Select the borrowed currency.
From here you can withdraw the funds to an external crypto wallet, trade them via Buy/Sell or Exchange, or use them within Earn.

Fees and interest

There are no upfront fees for Borrow products. Minimum asset amounts might apply depending on the specific asset you choose. Each loan bears interest, which is variable and charged hourly. The interest is then added to the total loan amount, so it compounds.

The estimated interest rate you will be charged will be shown to you before you confirm your Borrow. This interest rate is calculated on a per annum basis and is estimated based on previous loans on VALR’s loan book.

The estimated interest rate is for reference purposes only and may not be an accurate representation of the actual interest that will be charged on your loan. The actual interest charged will depend on the supply and demand for that loan asset over the duration of your loan. The hourly rate can be highly variable. For more information please refer to Earn Terms of Service.

Some repayment methods also involve fees (see “How to repay a loan” section below).

How to repay a loan

When repaying your loan, there are two options:

a. Repay via transfer - this allows you to transfer any available funds from your other subaccounts to repay the loan in the required amount
b. Selling some collateral* - this allows you to instantly use your locked collateral and trade it for the borrowed asset to repay the loan.

Can I take out more than one loan?

Yes. You can take out multiple loans as long as you have enough collateral to support your loans. All loans can be viewed on your personalised Borrow dashboard.

How long can I keep a loan open?

You can take out a loan for as long as you need to. However, it is important for you to monitor the health of your loan, as price volatility and interest accrual can put your account at risk of liquidation.

Where can I view my loan balances?

You can view your loan balances on the Borrow dashboard.

The Borrow feature isolates your loan and collateral from your Main Account and all your subaccounts. This means that actions taken outside of the Borrow feature will not impact the health of your loans. Similarly, if your loan is liquidated, balances within your Main Account and subaccounts will also be unaffected.

Is VALR Borrow risky?

While VALR carefully curates every feature on the platform, all loans carry inherent market risks and credit risks. Crypto assets are highly volatile, and rapid market movements can cause your LTV to spike unexpectedly. We encourage all users to review our official Risk Disclosures and Terms of Service before borrowing funds.

Important:

Borrow is powered by VALR’s margin system and loan book. Additional information can be found in the Margin Trading Guide here.
By making use of VALR's Borrowing services, you acknowledge and agree that you have read and understood VALR's Risk Disclosures, Terms of Service and Earn Terms of Service, and that borrowing crypto assets carries inherent risks which may result in loss of capital, including the loss of some or all of the crypto assets or fiat currency provided as collateral.
Borrow is a separate product from Crypto Loans.
This article is provided for general information only. It explains how VALR Borrow works operationally and does not create any legal obligations between you and VALR. It is not financial, investment, legal or tax advice, and VALR is not advising you to borrow, to choose any particular risk appetite, or to hold any position. You should consider your own circumstances and obtain independent advice where appropriate.
Borrowing and using crypto assets, and any liquidation of collateral, may have tax consequences for which you are responsible.
When the VALR Exchange is in post-only mode, some repayment functions may not be available.

If you experience any issues or require further assistance, please contact our Support team here.

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