What happens if my collateral value decreases?

Nothing will happen if your collateral value fluctuates within normal market ranges. A margin call is only triggered once the value of your pledged crypto falls beyond a certain threshold.

  • At a 2:1 collateral ratio (50 LTV), a margin call occurs if your collateral drops by about 25% from its original level.

When this happens, Milo will notify you through your dashboard, and you’ll have 72 hours to respond. During this time, you can either add more collateral or make a principal payment to bring the loan-to-value ratio back in line.

If no action is taken within that window and the value continues to fall, a portion of your pledged crypto may be liquidated at the current market value to protect the loan. You can track your real-time collateral position, margin thresholds, and requirements directly in the Milo dashboard, giving you full visibility and control.

Related questions

What happens if my collateral value increases?
Can I stake my crypto while it’s pledged?

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