We've received feedback from our clients that they'd like to make use of their excess loan collateral when the price of BTC goes up and the LTV goes down.
To address this, we're excited to launch a new feature called "excess collateral redemption" that unlocks your excess BTC collateral when your LTV dips below 30%.
Here's everything you need to know to take advantage of this feature:
Eligible Loans for Excess Collateral Redemption
Both B2X and Dollar Loans are eligible when:
- They have been active for more than 30 days and have an LTV below 30%.
- There has been no excess collateral redemption for the loan in the last 30 days.
- There is at least $100 USD worth of excess BTC collateral. The maximum amount that can be redeemed is $100,000 USD worth of excess BTC collateral.
How Excess Collateral Redemption Works
- When a loan is eligible, you'll see a "Redeem collateral" button in the LTV column of your "Active Loans" tab.
- You'll have the ability to unlock the amount of collateral that will bring your loan's LTV back to the target LTV of 45% and send it back to your Ledn BTC Transaction account.
- If the value of your excess BTC collateral is worth more than $100,000 USD, you'll only be able to redeem a maximum of $100,000 USD worth of BTC. In these cases, the LTV may not reach 45% after redemption.
What You Can Do with Your Redeemed Collateral
The collateral you redeem will be sent back to your BTC Transaction account. Once it's there, you can use it to earn interest, make trades, open a new loan, or get a Dual Cryptocurrency Note (DCN) if you have enough BTC and the products are available to you.
Availability of Collateral Redemption
This feature is available almost everywhere in the world, however, there are countries and states that may have certain partial or total restrictions. To find out if you are eligible please contact support@ledn.io.