Margin Call Prevention Solution

Margin Call Prevention Solution

To address the risks associated with loan collateral value fluctuations, Nebeus has implemented a robust margin call mitigation solution. This solution aims to protect both borrowers and Nebeus by providing essential features that enable borrowers to rectify margin call situations promptly. In this article, we will explore the key features of Nebeus' margin call mitigation solution and how they contribute to borrower protection and loan stability.

  1. Margin Call Notifications: Nebeus utilizes a real-time monitoring system that constantly tracks the value of collateral. If the collateral falls below a predetermined threshold, the borrower is immediately notified of a margin call. This proactive approach empowers borrowers to take appropriate actions to rectify the situation promptly, ensuring that their loans remain in good standing.

  2. Collateral Liquidation: In the event that a borrower fails to meet the margin call requirements, Nebeus has mechanisms in place to liquidate a portion of the collateral. This serves to restore the required collateral level and maintain the security of the loan. It is important to note that Nebeus provides borrowers with a 10-day grace period to save their crypto in case of a margin call. During this period, Nebeus will automatically replenish the loan collateral from the borrower's main Nebeus account.  Also, the User can add additional collateral or fully repay a loan. This ensures that borrowers' crypto assets are saved, and their loans can continue as usual.

  3. Account Management Tools: Nebeus offers borrowers access to comprehensive account management tools. These tools empower borrowers to monitor the value of their collateral and stay informed about the status of their loans. By providing borrowers with visibility and control over their loan obligations, Nebeus enables them to make informed decisions and proactively manage their loans.

  4. Automatic Margin Call Management: Nebeus takes an additional step to protect borrowers by automatically monitoring market volatility. When approaching a margin call situation, Nebeus will automatically replenish the loan collateral from the borrower's main Nebeus account. To enable this feature, borrowers need to ensure that they maintain sufficient funds in their main Nebeus account, in the currency used as collateral for their loan. This automatic margin call management provides borrowers with added peace of mind and safeguards their loans against unexpected market fluctuations.

  5. Excess Collateral Release: In situations where cryptocurrency prices increase by more than 10%, Nebeus offers the option of releasing excess collateral. This feature is especially valuable for borrowers who have taken out longer-term loans. By automatically releasing a portion of the collateral, borrowers can benefit from increased flexibility while still maintaining adequate loan security.

Nebeus' margin call mitigation solution is designed to protect borrowers from the risks associated with collateral value fluctuations. By combining margin call notifications, collateral liquidation procedures, account management tools, automatic margin call management, and excess collateral release, Nebeus ensures borrower protection and loan stability.

For more detailed information on Nebeus' margin call mitigation solution, we encourage borrowers to refer to the Help Center on the Nebeus platform. Additionally, our dedicated customer support team is available to provide assistance and answer any questions borrowers may have.

At Nebeus, we are committed to providing a secure lending environment and supporting our borrowers throughout their loan journey.

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