Learn how institutional participants use commodities as collateral for loans. This educational platform explains the mechanisms, risks, and compliance requirements for commodity-backed lending.
This platform is for educational purposes only. All transactions are user-customizable. Users maintain self-custody of assets. Commodity prices are subject to volatility and market conditions.
Choose a commodity (gold, silver, oil, natural gas) to use as collateral.
Platform values commodity at current market price using Chainlink oracles.
User specifies collateral amount and LTV (loan-to-value) ratio.
User customizes loan amount, duration, and interest rate.
Loan Amount / Collateral Value
If you deposit 100 oz of gold worth $205,000 and borrow $102,500, your LTV is 50%
Collateral Value / Loan Amount
Health factor of 2.0 means collateral is worth 2x your loan. Below 1.0 = liquidation risk
Loan Amount / Max LTV
If max LTV is 60%, liquidation occurs when collateral value drops 40% from entry price