Coinbase users can convert Bitcoin to cbBTC at a 1:1 ratio, but they must keep at least 133% of the value as collateral, with safeguards to prevent liquidation.

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Coinbase users can convert Bitcoin to cbBTC at a 1:1 ratio, but they must keep at least 133% of the value as collateral, with safeguards to prevent liquidation.

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Users’ Bitcoin collateral is converted to Coinbase-wrapped Bitcoin (cbBTC) at a 1:1 ratio without fees and transferred to Morpho
Collateral is liquidated if the loan balance reaches 86% of the collateral’s market value, triggering repayment and penalty fees, with remaining Bitcoin returned to borrowers
The loans require a minimum collateral ratio of 133%, with borrowers able to adjust their loan-to-value (LTV) ratio above this threshold
If price swings are reaching any sort of dangerous point, we will share liquidation warnings through the Coinbase app so that you're aware of it and can act

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Summary of Coinbase's Bitcoin-backed loan offering

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