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RE: Taking Out Crypto Loans Via Celsius (UK)

in LeoFinance3 years ago

Ha, I had a very similar question and this one was answered in their email as they send you a full set of FAQs which is in addition to the full T & C at the time of applying for the loan:

What happens if the price of my pledged assets increases during the course of the contract?
If the value of your pledged assets increases such that the Sale-to-Value (STV) Ratio drops to under half of the initial STV, you are allowed to request the renegotiation of the Sale and Repurchase Arrangement. You can request to repurchase a portion of the pledged assets at no cost, or you can receive an additional amount of Purchase Price without transferring additional Tendered Assets (Section 10).

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Ah that’s cool so if you do a say a3 year into the bull loan and your LTV drops you can pull back your asset and go get some yield

This is so sweet man, makes me jusy want more and more BTC

Yeah that's it mate. And if you take a loan out at 25% LTV and Bitcoin goes down, it would have to go down a long way before you'd need to add a bit more BTC to cover the cost (think it's called a Margin Call). E.G. for me with the current loan, BTC would have to go down to $21k region before I'd need to provide more collateral, which I can only assume I'd get back after paying off the loan, so even better!