Margin call:
A margin call occurs if your LTV ratio ever reaches 70%, even temporarily. A margin call is a requirement to lower your LTV to 60% or below within 24 hours, otherwise part of your collateral will be liquidated to lower your LTV to 60% for you. If a margin call occurs, you will be notified via email and push notification (if notifications are enabled).
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Yes, I understand how it works and have already opened and closed multiple loans with Strike. It works great. Do the math. If you took out a loan at the absolute peak price you still wouldn’t be at 70% LTV so I doubt there have been very many margin calls……yet.
This may be true for Strike borrowers but what about the others guys? Morpho and Coinbase surely have far more than strike because of their size. Not to mention any of the other guys offering similar products.