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 if you have selected the "When crypto prices are falling" before complete your Loan, otherwise you will not be able to recover your crypto.
The other option is to pay the full amount of the Loan to avoid lose your collateral.
If you do nothing, we sell all your collateral, cover the value of your loan, and deposit the remaining fiat to your account with us. You are free to take it out at any time.
What Is the Loan-to-Value (LTV) Ratio?
The Loan-to-Value (LTV) ratio refers to the percentage(%) of the value of your collateral you will receive in a different asset. In the case of Nebeus, when you take out a loan you will use your crypto as collateral and receive cash. The higher the ...
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.
What is Excess Collateral Release, and how does it work?
Excess Collateral Release is an extra option that you can select when getting a Nebeus Flexible Crypto-Backed Loan, which allows you to get part of your collateral back if cryptocurrency prices rise by more than 10%. How does Excess Collateral ...
What is collateral and why do I need it?
What Is Collateral? The term collateral refers to an asset, in this case BTC or ETH that Nebeus accepts as security for a loan. The collateral acts as a form of security for Nebeus, the lender. In the event, a borrower doesn't pay back their loan it ...
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 ...