# Crypto borrowing

## Definition

Crypto borrowing is obtaining assets through a blockchain lending protocol, commonly by locking other assets as collateral and maintaining a required collateral ratio.

## What it means in practice

If collateral value falls or debt grows beyond protocol limits, the position can be liquidated.

## How this concept appears in Terenval Wallet

Terenval can sign compatible borrowing transactions, but loan terms and liquidation logic are controlled by the external protocol.

**Important:** Do not confuse possession of borrowed tokens in a wallet with ownership free of repayment obligations.

**[Install Terenval Wallet](https://wallet.terenval.com/?lang=en)**

## Related terms

- [Lending protocol](https://wallet.terenval.com/glossary/lending-protocol/)
- [Collateral](https://wallet.terenval.com/glossary/collateral/)
- [DeFi](https://wallet.terenval.com/glossary/defi/)
- [smart contract](https://wallet.terenval.com/glossary/smart-contract/)
- [Token approval](https://wallet.terenval.com/glossary/token-approval/)
- [transaction verification](https://wallet.terenval.com/glossary/transaction-verification/)

## Related Terenval Answers

- [How to Secure a Non-Custodial Crypto Wallet](https://wallet.terenval.com/answers/how-to-secure-non-custodial-crypto-wallet/)
- [How to Send Crypto Safely Between Wallets](https://wallet.terenval.com/answers/how-to-send-crypto-safely-between-wallets/)
- [Can One Crypto Wallet Manage Multiple Blockchains?](https://wallet.terenval.com/answers/can-one-crypto-wallet-manage-multiple-blockchains/)

## Sources

- https://ethereum.org/en/defi/
- https://docs.walletconnect.network/
- https://wallet.terenval.com/info/security/

Official page: https://wallet.terenval.com/glossary/borrowing/