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.

• With BTC or ETH at a 2:1 collateral ratio (50 LTV), a margin call occurs if your collateral drops by about 25% from its original level.
• With XRP at a 2.5:1 collateral ratio (40 LTV), a margin call occurs if your collateral drops by about 40% from its original level. The lower starting LTV gives XRP borrowers more room before a call.

When this happens, Milo will notify you through your dashboard. Act as soon as you can, by adding more collateral or making a principal payment to bring your loan-to-value ratio back in line. The sooner you act, the less exposed you are to the next move in the market.

Your pledged crypto is liquidated only if your loan-to-value ratio reaches the liquidation threshold disclosed in your loan documents. A margin call on its own does not mean your collateral will be sold, but that threshold is driven by price rather than by a fixed number of hours, so a fast decline can reach it quickly. Missed loan payments are handled separately and can still lead to liquidation.

You can track your real-time collateral position, margin thresholds, and requirements directly in the Milo dashboard, giving you full visibility and control.