[Guide] borrowed against your crypto and got force-liquidated — the lending LTV trap nobody warns you about

lots of people borrow stablecoins against their crypto instead of selling — but if you don't get LTV, one move liquidates you. the key: 1. LTV (loan-to-value) = borrowed ÷ collateral value. If your collateral coin drops, LTV automatically rises 2. Cross the liquidation LTV and your collateral is force-sold → right at the bottom 3. So 'I borrowed to AVOID selling' becomes 'I got force-sold even cheaper' when it crashes — the paradox 4. To use it safely: keep LTV low (e.g. 30–40%) + defend by repaying / adding collateral on dips 5. Borrowing to buy more coins ('recursive leverage') is a fast lane to cascade liquidation in a downtrend bottom line: only lend with spare collateral + low LTV. Borrow to the limit out of greed and one volatility spike wipes you.