If your loan is overcollateralized, you may be eligible to redeem or unlock part of your Bitcoin collateral through our Excess Collateral Redemption feature. This allows you to access funds when your Loan-to-Value (LTV) ratio drops below the redemption threshold.
What Is Excess Collateral Redemption?
Excess Collateral Redemption allows you to withdraw part of your collateral if your LTV drops below 30%, bringing it back up to a target LTV of 40%. This is often used by clients who want to:
- Release or unlock BTC collateral
- Withdraw collateral
- Access funds without closing the loan
- Use released funds for trading, earning interest, or opening a new loan
Eligibility Requirements:
- The loan has been active for more than 60 days
- Your current LTV is below 30%
- You have not redeemed collateral in the last 60 days
- You have at least $100 USD worth of redeemable collateral available (maximum: $100,000 USD every 60 days)
How to Redeem Collateral
- Go to the “Active Loans” tab in your Ledn Dashboard.
- If your loan is eligible, you will see a “Redeem Collateral” button.
- Click it to unlock the available amount.
The BTC will be transferred to your Transaction Account, where you can use it as needed.
Notes
- The collateral redemption does not act as a loan refinance or increment loan amounts.