Margin calls and liquidations
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      3. Margin calls and liquidations

      How do I clear a margin call?

      You can clear a margin call with a bitcoin deposit, wire transfer payment, requesting Unchained to take possession of and sell your collateral, or BTC price increase.

       

      • If an event of default occurs due to failure to satisfy your CTP requirements, our current process is to liquidate collateral and to apply the net proceeds to outstanding balances, less selling fees to Unchained Trading, LLC, in order to achieve a collateral-to-principal ratio of 200%.
      • If your loan’s principal balance would be less than $10,000 following a liquidation, we will instead liquidate sufficient collateral to repay the outstanding loan balance, plus selling fees to Unchained Trading, LLC. Unchained reserves its rights to change or eliminate this process in response to market conditions.

      There are four ways margin calls can be cleared:

      1. Deposit additional collateral
      2. Send a wire transfer to make a principal payment
      3. Request Unchained to take possession of and sell collateral at the trading desk
      4. Wait to see if the BTC/USD price increases (hazardous--risks liquidation of collateral)