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 CTP violation.

You can submit a request for Unchained to use collateral to make a principal payment to your loan. If you do not satisfy a CTP violation, we will liquidate collateral according to our CTP violation process.

Collateral liquidation process:

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 with the net proceeds of the sale and create the bitcoin transaction for settlement.
   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 sale.
4. If the loan is closed as a result of the sale, collateral will be returned to you following the settlement of the sale.