My collateral has been liquidated due to a margin call: what can I do?
When your loan approaches a margin call and your Crypto collateral is at risk of liquidation, you will be notified via email. However, if there is no action taken from your side by the moment of a margin call, there is still a way to avoid your collateral liquidation within 10 days from such event.
1. If you activated the automatic collateral replenishment option in case of Crypto prices going down:
You will be able to replenish your Crypto wallet with enough amount to cover your collateral and cancel the collateral liquidation.
2. If you didn't activate the automatic collateral replenishment option in case of Crypto prices going down:
You will be able to repay your loan early and get your collateral back.
If you don't take any action after 10 days from the margin call event, your collateral will be liquidated, and the rest will be returned to your Nebeus account.
What is Auto Margin Call Management?
Auto Margin Call Management is an option you can select when getting a Nebeus Flexible Loan. How does this work? If you turn on the Auto Margin Call Management option, Nebeus will monitor the price and volatility of the cryptocurrency that you are ...
What is a margin call and how does it work?
Nebeus loans use cryptocurrency as collateral which is locked to cover the amount of the loan according to your LTV. Collateral is used by the lender as insurance against the loan. When you enter into a loan backed by cryptocurrency you are agreeing ...
How long do I have to react to a margin call?
If you have selected "When crypto prices are falling" option before you complete your loan, you still can react regarding a margin call, but you have to be super quick by adding collateral to your wallet. We recommend that you leave some extra ...
What if my collateral drops in value?
We lend you the value of 72 - 85 % of your crypto-collateral (calculated on the day the loan is issued). If the crypto-market goes down, and the value of your collateral is reaching the value of your loan, you can: Add more crypto to your collateral ...
What can be used as collateral against a cash loan?
Currently, BTC and ETH can be used as collateral when taking out a cash loan.