What happens if I don’t add collateral after a margin call?

Your loan stays open and Milo keeps monitoring it, but the risk sits with you. Milo liquidates pledged collateral only if your loan-to-value ratio reaches the liquidation threshold disclosed in your loan documents. If that happens, only the amount needed to cover the shortfall is liquidated, never more.

That threshold is driven by the market price of your collateral rather than by a countdown, so there is no safe waiting period. A single sharp decline can carry a loan from a margin call to the liquidation threshold, and the only reliable way to protect your position is to add collateral or make a principal payment as soon as you get the notice.

Our mission is to help crypto holders build wealth and benefit from the long-term appreciation of their portfolios. For that reason, liquidation is always considered an absolute last resort. We encourage clients to use the tools available in their Milo dashboard to manage collateral proactively and avoid reaching this stage.