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. A margin call is a signal to act immediately: pledged crypto is liquidated only if the loan-to-value ratio reaches the liquidation threshold in your loan documents, and that threshold is price driven rather than time based. For a 100% LTV crypto-backed mortgage, the margin call trigger is roughly a 30% drop in collateral value.

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