How Margin Calls Work in Nebeus?

How Margin Calls Work in Nebeus?

📊 What Is LTV?

LTV (Loan-to-Value) measures the ratio between your loan amount and the current value of your crypto collateral:

LTV = Loan Amount ÷ Current Value of Collateral

  • Low LTV → safe zone
  • High LTV → increased risk and potential liquidation

Because crypto prices fluctuate, your LTV changes over time and may trigger different alerts or actions depending on your loan type.

⚠️Pre-Margin Call: Early Warning

Each loan type has its own Pre-Margin Call threshold.
When your LTV reaches this level, Nebeus sends you an early warning.

You will receive an email asking you to:

  • Add more collateral or
  • Repay part of your loan

👉No collateral is sold at this stage.

🚨Margin Call: Critical Alert

Different loan products have different Margin Call thresholds.
When your LTV reaches this level, you will receive an urgent notification.

Immediate action is required:

  • Add more collateral or
  • Repay part of your loan

If your LTV stays above the Margin Call threshold for 3 consecutive days, this will trigger automatic liquidation.

🔥Automatic Liquidation

Your loan may be liquidated (repaid using your collateral) in any of the following situations:

1️LTV stays above the Margin Call threshold for 3 consecutive days

If you do not take action during this period, the loan is automatically liquidated on day 3.

2️Monthly interest remains unpaid for more than 10 days

Unpaid interest automatically triggers liquidation.

3️The final loan amount is not repaid within 3 days after loan maturity

If the outstanding balance is not covered, the collateral is used to repay the loan.

What happens during liquidation?

Nebeus will sell part or all of your collateral to cover:

  • The loan principal
  • Accrued interest
  • Applicable fees

If the collateral value is not sufficient, you remain responsible for any outstanding amount.

After liquidation, you have 7 days to repay any remaining debt.

🧮How to Estimate Risk Changes

Because Margin Call and Pre-Margin Call thresholds differ between loan types, your exact LTV limits are shown directly inside the Nebeus app for each loan.

To estimate how market movements affect your loan, you can monitor:

  • Loan balance
  • Collateral amount
  • Current crypto price
  • Your LTV and health indicators shown in the app

Quick Summary

Stage

What Happens

Normal

Your LTV is healthy. No action needed.

Pre-Margin Call

You receive a warning. Add collateral or repay part of the loan.

Margin Call

Urgent action required. Add collateral or repay.

Liquidation

Triggered if LTV stays above Margin Call for 3 days, or if interest is unpaid for 10 days, or if final repayment is not made within 3 days after maturity. Collateral may be sold.

🔗Learn More

Margin Call and liquidation thresholds vary depending on the loan agreement and the loan type.
For full details, see:

👉 When Does a Margin Call Start?

If you need help understanding your LTV or loan health, feel free to contact our support team anytime.



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