Borrow & Earn With No Margin Calls: How Teller Works

Borrowing against digital assets can provide liquidity without selling the tokens. Teller makes the repayment deadline central to that process: loan terms are fixed, and collateral price movements do not trigger margin calls during the loan term.

Borrowers deposit a supported asset as collateral and receive funds from an available lending pool or offer. Lenders supply assets to earn borrower interest. The available collateral, loan amount, rate, and duration depend on the funded offers.

How borrowing works

1. Choose collateral. Connect a wallet on the supported chain and select the asset and amount to use as collateral.
2. Review the offer. Check the borrowing amount, interest, fees, collateral requirement, and repayment date.
3. Confirm the loan. Approve and deposit the collateral, then receive the borrowed funds in the wallet.
4. Repay or roll over before the deadline. Repayment releases the collateral. An available rollover refinances the loan into a new term.

No margin calls during the loan term

On Teller, a drop in the collateral price does not create a mid-term requirement to add collateral or repay early. There is no health-factor threshold that forces a sale during the agreed term.

The repayment obligation still applies. Borrowers must repay the amount due or complete an available rollover before the deadline. No margin calls does not mean that collateral can never be sold.

Repayment and rollover checkpoints

Loans with a 30-day term reach their checkpoint every 30 days. The exact deadline appears in the loan terms. Before that date, borrowers can repay or seek a rollover where one is available.

A rollover can use a flash loan to refinance the existing balance, avoiding the need to supply the full principal upfront. It is not guaranteed: funded offers, current collateral value, and the new terms determine whether it can be completed. Additional collateral or a partial repayment may be needed.

If the loan is not repaid or rolled over by its due date, it becomes overdue and the collateral can be sold through a 24-hour Dutch auction. That auction is a sale process, not an extra repayment grace period.

Why it matters

• A known deadline. The repayment date is visible when the loan opens.
• No mid-term margin calls. Collateral price movements do not trigger a forced sale during the term.
• Access funds without selling first. The tokens remain held as collateral until repayment or an overdue-loan auction.
• A path to extend. Available rollovers can continue borrowing under a new set of terms.

How lending works

Lenders supply a single asset to an isolated lending pool. Borrowers access that liquidity against the collateral supported by the pool, and borrower interest contributes to lender returns.

Each pool has its own collateral exposure and terms. If a borrower defaults, auction proceeds help repay the pool. Returns and recovery are not guaranteed; lenders remain exposed to borrower defaults, collateral value changes, liquidity constraints, and smart-contract risk.

A simple example

A borrower deposits collateral and takes a stablecoin loan with a 30-day term. If the collateral value falls on day ten, there is no margin call during that term. Before the due date, the borrower repays or completes an available rollover.

A lower collateral value can affect the next rollover offer. If no suitable rollover is available, repayment is still due on the original date. Missing it puts the collateral at risk of auction.

Putting it to use

Collateral-backed borrowing can provide stablecoin liquidity, help manage another borrowing position, or fund an onchain activity without first selling the collateral. Using borrowed funds adds risk, especially when they are used for trading or additional borrowing.

Review the available offers, total repayment amount, and deadline before confirming a loan. Explore borrowing on Teller.

Originally published August 13, 2025. Adapted for Teller Pro. This article is for general information, not financial, investment, legal, or tax advice. Availability and eligibility depend on applicable terms and jurisdiction.