When the BTC or ETH collateral value in US dollars drops, your loan’s LTV ratio increases.
If value drops significantly, we will ask you to deposit more collateral into the collateral address of your loan, or pay down all of your outstanding loan balance. If the price continues to drop without any action from you, Ledn may sell part of the 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 collateral. Additional email reminders will follow, including if your loan LTV reaches 75%. We strongly recommend frequently checking your loan LTV, and adding more 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 the collateral to repay the loan balance outstanding at that time and send any remaining collateral amount into your applicable Transaction account at Ledn. This is an automated process that is irreversible.