All liquidations are done manually by humans. Collateral is sold on an exchange, then a principal payment is made to the loan before initiating settlement with the exchange for the collateral amount sold.
- The collateral is sold on an exchange.
- A corresponding principal payment is made to the loan from the proceeds of the trade.
- We begin settlement for the trade with the exchange for the amount of collateral sold. It is preferred that the client key is ready to sign for the transaction immediately following the principal payment to the loan, if applicable. If the borrower is unable to sign in a timely manner, we will engage the Key Agent for the second signature to settle the liquidation.