A margin call will be triggered if your loan's collateral-to-principal ratio falls below 150%. If you do not satisfy the margin call in time, collateral will be liquidated and your loan may be closed.
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, plus selling fees to Unchained Trading, LLC, in order to achieve a collateral-to-principal ratio of 200%. We reserve the right to change or eliminate this process at our discretion.
150% CTP ratio—first 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 into compliance with the covenants in your loan documents. Your loan account page shows a summary of required ratio(s). 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 into compliance with the covenants in your loan documents. Your loan account page shows a summary of required ratio(s). You will have 4 hours to fulfill the accelerated margin call.
110% CTP ratio—immediate liquidation
At a CTP ratio of 110%, a liquidation of loan collateral will be initiated immediately to pay the outstanding loan balance and close the loan; any remaining collateral will be returned to you.