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How does Liquidation work?

Written by Support

Liquidation happens when your LTV (Loan-to-Value) reaches the liquidation threshold — the maximum risk level for your Credit Line.
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When this point is reached, your collateral is automatically sold to repay the loan principal and the accrued interest. This process ensures that the Credit Line remains fully covered.
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You can prevent liquidation by monitoring your LTV and keeping it within a safe range — for example, by adding more collateral or partially repaying the Credit Line before the threshold is reached.
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From our side, we closely monitor your LTV and send notifications in advance if your position approaches the liquidation level. This gives you time to react — you can add more collateral or partially repay the Credit Line to lower your LTV and avoid liquidation.

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