When you take a loan with cryptocurrency, not stable coin, you have double risk of liquidation
- Risk of the cryptocurrency you use to make your loan (as a collateral). Its value can be decreased that cause your margin trade will be more easily to be liquidated
- Risk of the cryptocurrency you are in trades will decrease.
- In worst case, you will have double decreases from your collateral and the coin in opened positions
- Make sure you don't use more than 10% of your capital for loan, and margin trades
- Read Differences Between the New Isolated Margin Mode and Cross Margin Mode, then choose one type that fits your need and your risk management
I don't recommend you to go with margin trades if you are not experienced traders in crypto market. In bullish altcoin season, you can choose good ones and hold. It is safer, pressure-free and more profitable at the ends.
This is on point and also I don't know how these loans work, are they fixed terms or can you return the loan earlier? Otherwise there is also liquidity risk if you are sitting on the loan that you would like to return earlier because you can afford it but you can't because of agreed upon fixed return terms. Flexibility in returning the loan is one condition I would want to have included in the loan contract.