# Depositing Collateral

LENDBIT requires borrowers to deposit collateral to secure their loans. The collateral ensures the lender’s protection in case of non-repayment.

* **Supported Collateral**: Currently, Sepolia ETH and Sepolia LINK are the only supported collateral on the Base Sepolia test network.
* **Collateral Deposit Process**: After creating a borrow order, deposit the required collateral via your **Smart Wallet**. The platform will automatically calculate the loan-to-value (LTV) ratio, allowing you to borrow up to 80% of the value of your deposited collateral.


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