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Should I over-collateralize my loan?

Keeping your loan over-collateralized can help insulate the loan from receiving a margin call.

The illustration below is intended to show the additional protection from margin calls that adding collateral can provide.  All Unchained Capital loans are originated at a maximum LTV of 40%, which equals a CTP ratio of 250%.  Loans with a principal balance greater than $1,000,000 may have lower requirements imposed for maximum LTV at origination.  The table is best read from left to right, beginning with the CTP at loan origination.

For additional details on the margin call process, click here.


The table below makes the following assumptions:

  • BTC/USD price of $50,000 at time of origination of loan
  • CTP = Collateral to Principal ratio at origination
  • MC = Margin Call
  • AMC = Accelerated Margin Call

 

CTP % Price decline to MC Price at MC % Price decline to AMC Price at AMC % Price decline to Liquidation Price at Liquidation
200% 25.00% $37,500.00 32.50% $33,750.00 45% $27,500.00
225% 33.33% $33,333.33 40.00% $30,000.00 51% $24,444.44
250% 40.00% $30,000.00 46.00% $27,000.00 56% $22,000.00
275% 45.45% $27,272.73 50.91% $24,545.45 60% $20,000.00
300% 50.00% $25,000.00 55.00% $22,500.00 63% $18,333.33
325% 53.85% $23,076.92 58.46% $20,769.23 66% $16,923.08
350% 57.14% $21,428.57 61.43% $19,285.71 69% $15,714.29
375% 60.00% $20,000.00 64.00% $18,000.00 71% $14,666.67
400% 62.50% $18,750.00 66.25% $16,875.00 73% $13,750.00
425% 64.71% $17,647.06 68.24% $15,882.35 74% $12,941.18
450% 66.67% $16,666.67 70.00% $15,000.00 76% $12,222.22
475% 68.42% $15,789.47 71.58% $14,210.53 77% $11,578.95
500% 70.00% $15,000.00 73.00% $13,500.00 78% $11,000.00
525% 71.43% $14,285.71 74.29% $12,857.14 79% $10,476.19
550% 72.73% $13,636.36 75.45% $12,272.73 80% $10,000.00
575% 73.91% $13,043.48 76.52% $11,739.13 81% $9,565.22
600% 75.00% $12,500.00 77.50% $11,250.00 82% $9,166.67
625% 76.00% $12,000.00 78.40% $10,800.00 82% $8,800.00
650% 76.92% $11,538.46 79.23% $10,384.62 83% $8,461.54
675% 77.78% $11,111.11 80.00% $10,000.00 84% $8,148.15
700% 78.57% $10,714.29 80.71% $9,642.86 84% $7,857.14
725% 79.31% $10,344.83 81.38% $9,310.34 85% $7,586.21
750% 80.00% $10,000.00 82.00% $9,000.00 85% $7,333.33