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  3. Margin calls and liquidations

What is the margin call process?

A margin call will be triggered if your loan's collateral-to-principal falls below 150%.

A margin call will occur at a collateral-to-principal (CTP) ratio of 150%, with an accelerated margin call at 135%. Immediate liquidation of collateral occurs at 110% to repay the principal amount owed on the loan.

175% CTP ratio

At a collateral-to-principal ratio of 175%, we send a courtesy email notification to advise borrowers of the status of their loan and encourage the improvement of the ratio by making a principal payment or adding additional bitcoin as collateral.

160% CTP ratio

At a collateral-to-principal ratio of 165%, a second courtesy email notification is sent.

150% CTP ratio—margin call

An automated margin call will occur if your CTP ratio reaches below 150%.

When the margin call is initiated, you will receive an email notifying you to bring your loan's collateral to principal ratio back to 165%.

You will have 48 hours to fulfill the first margin call.

135% CTP ratio—accelerated margin call


An automated accelerated margin call will occur if your CTP ratio reaches below 135%.

When the accelerated margin call is initiated, you will receive an email notifying you to bring your loan's collateral to principal ratio back to 165%.

You will have 4 hours to fulfill the accelerated margin call.

Warning: If the loan's CTP ratio is not brought to 165% or greater by the margin call expiration, Unchained Capital has the right to liquidate sufficient bitcoin held as collateral to pay all outstanding loan obligations and close the loan.

110% CTP ratio—liquidation

At a CTP ratio of 110%, a liquidation of loan collateral will be initiated immediately to pay the outstanding loan obligations and close the loan; any remaining collateral will be returned to you.