# Loan Options

### Fixed-Term Loans on GVNR Diamond Hands

GVNR Diamond Hands offers a fixed term borrowing model with added flexibility if you decide to extend your term or borrow more:

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### Fixed-Term 

A fixed interest rate over a fixed duration of 12 months..

* Interest is determined and settled upfront and applied over the full term.
* Ease of management over your loan with predictability over the 12 month period.
* At maturity, you must repay the full UCD debt or extend the loan, because if you don't you risk liquidation as the liquidation ratio begins to rise exponentially.

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### Fixed Term Flexibility

If you wish to extend the duration of your fixed term on GVNR Diamond Hands, this is fully supported by the protocol. As long as your position remains above the minimum CR, your loan can continue indefinitely.

You can also borrow more UCD at any time, provided your collateral ratio stays above 150%. The system will automatically calculate how much additional UCD you’re eligible to mint based on the current value of your BTC collateral.

This flexibility allows you to manage your position dynamically - drawing more liquidity or extending your borrowing horizon - without needing to close or restart the loan. Just be mindful that any increase in borrowing reduces your collateral buffer and brings you closer to liquidation risk, especially as the liquidation ratio rises over time.

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