What is LTV?
Loan to value: the size of the loan compared to the value of the collateral. E.g. if your portfolio is worth $1,000 USD and you borrow $500 USD - your account LTV is 50%.
What is the liquidation threshold?
The liquidation threshold is the point at which your collateral may be sold to repay part of your borrow to ensure your account remains healthy.
All loans are over-collateralized, but if the market value of your assets decrease - your loan could exceed the value of your portfolio. The app shows the exact threshold for each account on the Borrow assets page.
What does the "At risk" warning mean?
The account is getting close to liquidation. The app shows roughly how much the balance can fall before assets are used to cover the loan.
Will I be warned before liquidation?
The app shows escalating warnings as an account approaches the threshold and an email should be sent when member is close to liquidation, but liquidation is automatic and can happen quickly in falling markets.
I got liquidated. What happened, and can it be reversed?
Liquidations cannot be reversed. Normally only part of the collateral is programatically sold to repay some of the outstanding loan.
Can I lose more than I deposited?
No. Loans are over-collateralized, so the debt is always backed by the member's own assets. The risk is losing part of the collateral through liquidation, not owing money beyond it.