Margin calls and liquidations
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      3. Margin calls and liquidations

      How is my collateral liquidated?

      All liquidations are done manually by our team. Bitcoin backing a loan may be surrendered in the event of a margin call.

      You can request at any time for Unchained to use collateral to make a principal payment to your loan. If you do not satisfy a margin call, we may initiate a loan liquidation according to our margin call process.

      The collateral liquidation steps:

      1. The bitcoin backing your loan is sold on an exchange or to a properly licensed counterparty.
      2. A corresponding principal payment is made to the loan from the proceeds of the sale, less selling fees to Unchained Trading, LLC.
      3. We adjust the loan account and create the bitcoin transaction based on the trade.
        1. It is preferred that you are ready to sign with your key immediately following the adjustment to your loan account. If you are unable to sign in a timely manner, we will engage the Key Agent for the second signature to settle the liquidation.