bitcoin backed loan

Hey all — I’m buying an apartment in Portugal and weighing two options:

Option 1: Sell ~1 BTC for the down payment
Option 2: Borrow €80k against 2.2 BTC at ~1.24% APY (Morpho)

On paper, borrowing feels like the obvious choice — low interest, keep exposure to BTC.

That said, I’ve never used BTC as collateral before, so I want to sanity check the risks.

• Current LTV would be ~60%
• Liquidation threshold is higher (so some buffer, but not huge)
• Main concern: downside volatility in BTC (e.g. another leg down)

I’m long-term bullish, but I don’t want to get wiped out by short-term moves or forced liquidation.

For those who’ve done this before:

• How do you think about “safe” LTV levels?
• At what point does this become reckless vs. smart leverage?
• Any rules of thumb (e.g. target LTV, when to top up, etc.)?

Appreciate any real-world experience — especially from people who’ve actually gone through a drawdown while leveraged.

https://preview.redd.it/8pd84k1ukdrg1.png?width=754&format=png&auto=webp&s=e0c7c5f46a775ee75f273af5131d393447f4bc2a