Risks Associated With Borrowing Against Cryptos
Trading cryptos can be a challenging and potentially profitable opportunity for investors. However, before deciding to participate in the crypto market, you should carefully consider your investment objectives, level of experience, and risk appetite. Most importantly, do not invest money you cannot afford to lose. Past performance is not indicative of future results . Any investment is subject to normal market fluctuations and there can be no assurance that an investment will return its value or that appreciation will occur. Crypto markets are volatile and extreme volatility might cause your crypto to be liquidated due to a margin call if your loan-to-value ratio rises above 85%.
Borrowing against cryptos on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest or borrow against your crypto you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with cryptos, and seek advice from an independent financial advisor if you have any doubts.
For example, a one year $20,000 loan with a rate of 14.00% APR would accrue $2,800 of interest after one year. Therefore, after 1 year, the total amount owed to Kambo will be ($20,000 + $2,800) = 22,800. Besides interest, there are no additional fees or other costs to the borrower. Kambo does not charge an early payment penalty or any other hidden fees.
Hypothetical Results Disclaimer
The results found on this website are based on past performance results that have certain inherent limitations. Hypothetical trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profits or losses similar to these being shown. No guarantee of any kind is implied or possible where projections of future conditions are attempted. All trading strategies are used at your own risk.