When the digital asset used as collateral drops in value, your loan’s LTV ratio increases.
If the digital asset used as collateral drops significantly in value, we will ask you to deposit more digital assets into the digital asset collateral address of your loan, or pay down all of your outstanding loan balance. If the digital asset used as collateral continues to drop in value without any action from you, Ledn may sell part of your digital asset collateral to repay the loan balance outstanding at that time.
You will be sent an email notice when your loan LTV is above 70% to add more digital asset collateral.
Additional email reminders will follow, including if your loan LTV reaches 75%. We strongly recommend frequently checking your loan LTV, and adding more digital asset collateral to reduce the LTV before it reaches these levels.
If your loan LTV exceeds 80% at any point in time, we will automatically sell part of your digital asset collateral to repay the loan balance outstanding at that time and send the remaining digital asset amount into your applicable Transaction account. This is an automated process that is irreversible.