Margin Call

A margin call happens when your crypto collateral drops in value far enough that the loan-to-value ratio crosses the lender's warning threshold (often 65%–70%). You'll get notice and a deadline — typically 24 to 72 hours — to either post additional collateral, pay down a portion of the loan, or let the lender liquidate crypto to restore the ratio.

Margin calls are the single biggest risk in crypto-backed lending. Conservative LTVs (40%–50% at origination) and watching market volatility reduce the odds of ever getting one.

Why it matters for Milo customers

Milo's margin call thresholds are fixed at funding. For a 100% LTV crypto-backed mortgage, the trigger is roughly a 30% drop in collateral value. Borrowers can top up collateral or curtail principal to cure — no auto-liquidation.

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