Using your stock portfolio as collateral for a loan - smart or risky?

I’ve been reading about securities-backed loans lately and I’m curious how people here feel about them.

The basic idea is that instead of selling stocks when you need cash, you can borrow against the value of your portfolio. The shares act as collateral and the lender provides the loan.

In theory this lets you keep your investment exposure while still accessing liquidity.

This explanation helped me understand the mechanics a bit better:

https://stockloanhub.com/what-is-a-stock-loan-and-how-does-it-work/

But I’m wondering about the downside.

If the market drops and your collateral value falls, does the lender issue something similar to a margin call?

I can see how this could be useful for someone with a large portfolio who doesn’t want to trigger capital gains taxes, but it also seems like it could become risky during volatile markets.

Curious if anyone here has experience with securities-based lending or stock-backed loans.