If the value of your blockchain asset rises, you may have the option to: add the increased value to the principal of the loan for additional capital from the lender or do nothing but continue to make payments according to the terms of the loan agreement. If the value of your blockchain asset drops enough to cause a breach of the agreed upon loan-to-value (LTV) threshold, you will be contacted by SALT Blockchain Lending for a Collateral Maintenance Call. You will be given an opportunity to either add additional collateral or make an additional principal payment, bringing your collateral account balance back into equilibrium. The options available to you depend on the loan terms agreed to at loan origination.
Articles in this section
- How do I meet a margin call?
- How am I notified of a margin call?
- What happens if my crypto collateral forks while I have it tied up in a loan?
- What is a blockchain asset?
- Do I still own my asset?
- What happens if the market value of my asset changes?
- What address do I send my Bitcoin or other blockchain asset collateral to?
- What other factors determine when it is necessary to liquidate collateral?
- Does SALT Blockchain Lending use Member collateral for anything?
- Is there a tax event when I post my asset as collateral for a loan?