What happens if the value of my crypto goes down?
If you’ve pledged crypto as collateral, a margin call is generally issued once the value of your collateral drops by about 69% from its original level. The exact margin call threshold may vary depending on your loan terms, but you’ll always be able to clearly track your specific requirements within your Milo dashboard.
When a margin call occurs, you’ll have 72 hours to respond. During this time, you can either pledge additional crypto or make a principal payment to restore your loan-to-value ratio.
If no action is taken within that timeframe and the value continues to fall, a portion of your collateral may be liquidated to protect the loan.
If you’re using crypto as reserves, there is no margin call risk since your assets remain unpledged and in your self-custody.