Forced Liquidation Rules for Larger Crypto Loans

In order to improve user experience and reduce investment risks, we have updated the forced liquidation rules for large Crypto loans as follows:

Crypto assets ≥ 0.5BTC or 20,000 USDT

When the loan-to-value ratio is higher than the closing loan-to-value ratio, and the Crypto asset is ≥ 0.5BTC or 20,000 USDT (applicable if the Crypto asset is not BTC), the system will sell part of the Crypto asset to keep the loan-to-value ratio lower than the margin call loan value Compare.

Collateralized Assets Sold = [(Loan Value – Collateralized Asset Value) * Margin Call Loan-to-Value Ratio] / (1 – Margin Call Loan-to-Value Ratio)

Loan Value = Unpaid Principal + Unpaid Interest

Please note that the values ​​calculated by the above formulas are estimates only.

Whether to carry out forced liquidation depends on market conditions, please refer to the final disposal result.

Forced liquidation of all Crypto assets may occur in the following scenarios:

  • The loan-to-value ratio is higher than the closed-out loan-to-value ratio, but the Crypto asset value is less than 0.5 BTC or 20,000 USDT (applicable to the case where the Crypto asset is not BTC).
  • The payment cannot be repaid on the final overdue date (i.e. 7 days after the overdue grace period).

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