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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 loan-to-value (LTV) of 40%, which equals a collateral-to-principal (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.

Tip: To learn more about the margin call process, read What is the margin call process?

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

CTP = Collateral to Principal ratio at origination, MC = Margin Call, AMC = Accelerated Margin Call. The table above assumes BTC/USD price of $50,000 at the time of loan origination.