> For the complete documentation index, see [llms.txt](https://advisorhub.syntheticfi.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://advisorhub.syntheticfi.com/product-deep-dive/reg-t-borrowing-power.md).

# Reg T Borrowing Power

{% hint style="info" %}

## Borrowing power is a maximum, not a target

How much a client can borrow comes down to two things: the maximum the account allows, and the client's risk tolerance. The maximum roughly matches standard margin, around 50% for stocks, 70-75% for fixed income, and up to 90% for US Treasuries. How much they should actually borrow depends on how much cushion they want before a margin call.
{% endhint %}

### What sets the borrowing amount

Two things determine how much a client borrows:

1. **The maximum the account allows.** Set by the custodian's margin rules, not by SyntheticFi.
2. **The client's risk tolerance.** How much they borrow directly sets how far the portfolio can fall before a margin call. Borrowing well under the maximum leaves a larger cushion.

Both matter. The maximum is a ceiling, not a recommendation.

### The maximum by holding type

Maximum borrowing power on a SyntheticFi loan generally matches standard margin:

* **Stocks:** around 50%
* **Fixed income:** around 70-75%
* **US Treasuries:** up to 90%

For concentrated positions, ask SyntheticFi, the advance rate is usually lower and depends on the specific holding.

### Custodian margin guides

* **Schwab:** [Schwab margin guide](https://www.schwab.com/resource/charles-schwab-guide-to-margin)
* **Pershing:** [Pershing margin guide](https://drive.google.com/file/d/1NQVy-Su99q-Hx85hkLaMFXNvIWr_hdiS/view?usp=sharing). Note: Pershing enforces a 30-day seasoning period for no-transaction-fee ETFs.
* **IBKR:** [IBKR margin guide](https://www.interactivebrokers.com/en/trading/margin.php)

### Floating rate

Under the floating-rate product, the loan takes up margin capacity similar to a traditional margin loan. For a worked example of how this appears in the account, see "What does it look like in my account?" on the [How It Works page](https://www.syntheticfi.com/how-it-works).

### Fixed rate

For fixed-rate loans, the available borrowing power is slightly lower. This is because the credit limit has to cover the full amount due at expiration, not just the amount drawn today. A fixed-rate loan accrues interest until it settles, so the repayment amount is larger than the initial draw, and the account must support that larger figure.

**Example (5-year fixed):** A client draws $500,000 today on a 5-year fixed loan. At expiration, they'll owe the $500,000 plus five years of accrued interest, so the amount due is higher, roughly $625,000 depending on the rate. The account's borrowing power must cover that full repayment figure, not just the $500,000 drawn upfront.

***

[\* Important Disclosures](/disclosures.md)


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