What are margin calls?

What are margin calls?

Margin calls are notices to restore your loan’s initial LTV when the value of your crypto collateral falls and is no longer sufficient to secure your loan. Based on the severity of the LTV increase, you will need to cure your loan in the required amount of time or your crypto will be liquidated. You can restore your initial LTV by adding collateral or making a payment on your loan. 

How do margin calls work?

You will get margin warnings, notices and liquidation notices pursuant to the following schedule:

• Loan amount/ crypto value (LTV) ≥ 65%: you get a notification a margin call is likely soon.
• Loan amount/ crypto value (LTV) ≥ 70%: you have 24 hours to put up collateral or make a payment to get to your original loan amount/ crypto value (LTV).
• Loan amount/ crypto value (LTV) ≥ 85%: we will liquidate your crypto to pay off the remaining balance of your loan. 

If you miss a margin cutoff, we will liquidate your crypto to pay down your loan to achieve an LTV of 55%. Any excess fiat along with unliquidated crypto is returned to you. You will incur a 2% processing fee for crypto we sell.