Volatility

Volatility measures how much an asset's price fluctuates over a given period, typically expressed as standard deviation of returns. Bitcoin and Ethereum are among the most volatile major financial assets: 20-30% weekly moves are not unusual; annualized volatility commonly runs 60-100% versus 15-20% for the S&P 500.

High volatility creates both opportunity (large upside moves) and risk (margin calls, forced liquidations). For lending against crypto, volatility is the central variable that determines collateral ratios and margin call thresholds.

Why it matters for Milo customers

Milo's loan structures are built around Bitcoin and Ethereum volatility specifically. Margin-call thresholds (≈30% drawdown on 100% LTV mortgages, looser on lower-LTV structures) are designed to give borrowers cushion through typical volatility while still protecting collateral coverage. Predictable, fixed-at-funding thresholds beat the variable thresholds DeFi platforms typically use.

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