Asset-backed loans with no margin calls (2026 guide)
An asset-backed loan on Teller lets you borrow against crypto (BTC, ETH) and tokenized stocks (TSLA and more) without selling them. Unlike typical CeFi or DeFi lending, these are fixed-term, no-margin-call loans: a price dip won't trigger a forced liquidation mid-term. If you have no assets to pledge, a no-collateral loan, where you pre-qualify based on your profile, is the other path.
There are two honest ways to get cash without selling what you own. You either pledge an asset you already hold, or you borrow on the strength of your income and history with nothing locked up. This guide is about the first one, the asset-backed loan, and specifically the version that won’t liquidate you the moment the market wobbles: a fixed-term loan with no margin calls. Below: what a margin call actually does to you, how to avoid liquidation, how the same logic applies to stocks, and how to decide between pledging an asset and borrowing with no collateral at all.
What “asset-backed” means here
An asset-backed loan is secured by something you own. You keep legal ownership; the asset is held as collateral until you repay. On Teller, that collateral can be major crypto like Bitcoin and Ethereum or tokenized real-world assets like TSLA and other stocks, with the menu expanding over time. The point is simple: you get liquidity without triggering a taxable sale and without giving up your upside.
What happens in a crypto margin call?
A margin call is what happens on a liquidation-based loan when your collateral’s price falls too far relative to what you borrowed. The mechanics differ by venue, but the ending is the same: your assets get sold, usually at the worst possible moment.
At a CeFi lender (custodial platforms like Ledn or Nexo), your loan carries a loan-to-value threshold. When the collateral’s price falls and your LTV crosses a warning line, the lender issues a margin-call notice: deposit more collateral or pay down the loan, often on a deadline measured in hours. Miss the deadline, or watch the price fall past the liquidation threshold, and the platform sells some or all of your collateral, typically adding a penalty fee. We cover how specific platforms handle this in Teller vs Ledn and Teller vs Nexo.
In a DeFi money market (Aave and similar protocols), there is no notice at all. Your position has a health factor; the moment it drops below the threshold, liquidators can repay part of your debt and seize collateral plus a liquidation penalty, automatically, enforced by code. Nobody calls you first. The Teller vs Aave comparison walks through the health-factor model in detail.
There’s a second cost most borrowers discover late: a forced sale of your collateral is typically treated as a taxable disposal. A liquidation can realize capital gains on long-held crypto at the bottom of a dip, so you can lose the asset and owe tax on it in the same year. The crypto loan tax guide covers this in depth (general information, not tax advice).
A no-margin-call loan removes this trapdoor entirely. Teller’s asset-backed loans are fixed-term: stay current on the loan and a price drawdown, however sharp, cannot force a sale before maturity. There is no LTV line to watch mid-term because there is no mid-term liquidation.
Margin-call lending vs fixed-term, no-margin-call loans
| Margin-call lending (CeFi / DeFi) | Fixed-term, no margin calls (Teller) | |
|---|---|---|
| Liquidation trigger | LTV or health-factor breach, any time | Only if not repaid or rolled over by maturity |
| Warning | Short-deadline notice (CeFi) or none (DeFi) | The due date, known from day one |
| What you monitor | The price chart and your ratio | The calendar |
| Rates | Often variable, moves with utilization | Fixed for the term |
| Forced-sale tax risk | A dip can trigger a taxable disposal you didn’t choose | No mid-term forced sale; timing stays in your hands |
| Starting LTV | Often higher | More conservative |
How to avoid liquidation on a crypto loan
Three ways, from tactical to structural:
- Borrow at a conservative LTV. The further your starting loan-to-value sits below the liquidation threshold, the bigger the price drop you can absorb. Borrowing the maximum leaves almost no buffer.
- Monitor and keep reserves. On a liquidation-based loan, you need to watch the market and be ready to top up collateral or repay principal quickly, including at 3am on a weekend, because that’s when crypto dips happen.
- Pick a structure that can’t be called mid-term. A fixed-term loan with no margin calls removes the mid-term trigger altogether: no threshold, no notice, no automatic sale during the term.
The honest caveat on option three: a fixed term doesn’t erase the obligation, it moves it. You must repay or roll over the loan by maturity, or the collateral can be liquidated at that point. What changes is that the risk becomes a date you can plan for rather than a price you can’t control. And the only way to carry zero liquidation risk is to pledge nothing at all, which is what the no-collateral path further down is for.
Borrowing against stocks without selling
The same logic extends beyond crypto. If you hold stocks you believe in, selling them for liquidity realizes capital gains and ends your exposure. Borrowing against them generally doesn’t: a loan isn’t a disposal, so no gain is realized while the position stays yours (again, general information, not tax advice). Traditional brokers offer margin loans against stock portfolios, but those carry exactly the margin-call mechanics described above: a falling portfolio can trigger a demand for cash or a forced sell-down of your shares.
On Teller, tokenized stocks like TSLA can serve as collateral for the same fixed-term, no-margin-call structure as BTC and ETH: borrow against the position, keep the upside, and know that a drawdown can’t force a sale before maturity. For the crypto-side mechanics, see how to borrow against your crypto without selling.
Asset-backed vs no-collateral: which fits?
Teller supports both paths, and the right one depends on what you have and what you want.
| No-collateral loan | Asset-backed loan | |
|---|---|---|
| What you pledge | Nothing | BTC, ETH, TSLA & more |
| How you qualify | Wallet activity + income signals (pre-qualification) | Value of the asset you pledge |
| Margin calls | None (unsecured) | None on no-margin-call terms |
| Where funds land | Your bank account | Against your collateral, on-chain or to bank |
| Best for | Cash now with no assets to pledge | Liquidity without selling, keeping upside |
When an asset-backed loan is the better move
- You believe in the asset long-term. Selling BTC, ETH, or TSLA to raise cash means giving up the upside and potentially realizing a taxable gain. Borrowing against it doesn’t.
- You want predictable terms. A fixed term with no margin call is far easier to plan around than a position that can be liquidated on a bad afternoon.
- You have the collateral. If your net worth is mostly in assets rather than income, this is the cleaner path to liquidity.
When to take the no-collateral path instead
If you don’t want to pledge anything, or don’t have assets sitting idle, a no-collateral loan is the answer. Teller reads your wallet activity and income signals to tell you whether you pre-qualify, no collateral required. Nothing is locked up and there is nothing to liquidate.
Getting started
If you hold crypto or tokenized stocks, connect a wallet to Teller and the asset-backed flow shows what you can borrow against them with no margin call. If you’d rather not pledge anything, run a quick pre-qualification instead: a soft check that tells you whether you pre-qualify for a no-collateral loan, with no hard credit pull and nothing locked up. For the mechanics of borrowing against crypto specifically, see our guide on how to borrow against your crypto without selling.
Frequently asked questions
A loan whose terms are fixed for the duration: as long as you repay on schedule, a drop in the price of your collateral does not trigger a forced sale before the loan matures. Standard crypto-backed loans, by contrast, liquidate your collateral the moment your loan-to-value ratio crosses a threshold.
On an LTV-based loan, a falling collateral price pushes your loan-to-value ratio up. At a CeFi lender, crossing a warning threshold triggers a margin call: add collateral or pay down the loan, often on a short deadline, or the platform sells your collateral, usually with a penalty. In a DeFi money market there is no notice at all; liquidation is automatic once your position crosses the threshold. The forced sale is also typically a taxable disposal of your crypto. Fixed-term no-margin-call loans have no such mid-term trigger.
Tactically: borrow at a conservative LTV, watch the market, and keep reserves ready to top up collateral or pay down principal. Structurally: use a fixed-term loan with no margin calls, like Teller's, where a mid-term price dip cannot force liquidation. Be clear-eyed about the trade: you still must repay or roll over by maturity, or the collateral can be liquidated at that point.
On Teller, asset-backed loans can be collateralized by major crypto like Bitcoin and Ethereum and by tokenized real-world assets such as TSLA and other stocks, with more assets added over time. The exact menu depends on the lender pool and your jurisdiction.
A no-collateral loan pledges nothing: you check whether you pre-qualify based on your wallet activity and income signals, rather than locking up an asset. An asset-backed loan pledges an asset you already hold so you can borrow against it without selling, keeping your upside.
Not mid-term on a no-margin-call loan, provided you stay current on the loan. The trade-off is a more conservative starting loan-to-value than a liquidation-based product would offer. Always read the specific loan terms before you borrow.
Yes. Because you are borrowing against the asset rather than selling it, any appreciation while the loan is open is still yours when you repay and reclaim the collateral.
See if you pre-qualify — no hard credit pull
A quick soft check tells you whether you pre-qualify for a no-collateral loan. No collateral pledged, no hard inquiry, and your credit score is unaffected.
Check if you pre-qualify →