# Use Case Example

Alice wants to acquire 10 ETH, currently priced at $2,000 each:

* In traditional DeFi, she might need $30,000 worth of collateral for a $20,000 loan.
* With MortgageFi, she could potentially borrow 10 ETH with just $400 (2% of $20,000) as collateral.
* She makes fixed USD repayments over her chosen term, eventually owning 10 ETH outright.

Understanding under-collateralized loans is crucial for users to fully leverage MortgageFi's unique offerings. This innovative approach to lending in the DeFi space opens up new possibilities for long-term crypto investment strategies and increased capital efficiency.
