To check the status of your collateral, go to My Loans, and open Loan Details, as shown in the screenshot below. Original Collateral reflects the status of your collateral at the moment of borrowing. Current Collateral shows changes that occurred to collateral during the loan term, including the current market value of your collateral.
Cryptocurrencies are very volatile, so you’ll probably see changes in Collateral Value and LTV graphs.
In the positive scenario, the market value goes up, and the LTV ratio goes down. In this situation, you can:
do nothing and use your overcollateralization as a safety bag;
withdraw excess collateral from an active loan and increase LTV to the maximum level of 70%.
In the negative scenario, your collateral value drops significantly, thereby increasing your LTV. As soon as your LTV reaches a danger zone of 80%, we mark your loan red with a “liquidation risk” label. You’ll get an email notification about a new status of your loan and a number of scenarios you may follow:
Add a certain quantity of collateral to balance your LTV back to 70%. To do so, make sure that you have a needed amount on your CoinLoan account, open Loan Details, and click on the Add More Collateral button.
Make a full early repayment or make a few payments in advance of your repayment schedule. Thereby, you’ll decrease your LTV.
If you ignore a notification or LTV goes beyond your liquidation threshold before you react, the system will liquidate your collateral. To figure out your threshold, open find the LTV Liquidation Threshold section in Loan Details. Here you can find at what level of LTV and market value of collateral liquidation occurs.
To find out more about how LTV on CoinLoan works, please read a corresponding article.