You can manage your loan by using the buttons in the top right hand corner of the page to Repay, Redeem or Top-up.
Repay
A 'repayment' is where a payment is made against the loan sum with USDT. You can repay to decrease the overall total owed, and a repayment can be made for the full outstanding amount or a portion of it.
Repaying in full will pay off the loan so nothing more is owed, repaying in part will decrease the amount taken by the automated monthly repayments.
To repay you just need to enter the amount you want to repay in the Repay amount box on screen. How this impacts the principal and LTV of the loan will be displayed below.
To confirm the repayment click the Repay button, and the repayment amount will immediately be debited from your CoinCorner USDT balance and the loan information updated to show the new figures.
Top-up
A 'top-up' is where additional bitcoin is added to the collateral as security for the loan. A top-up may be required to add to the collateral backing your loan to avoid a loan closure if your LTV is getting too high.
To top-up you will need to enter the amount of bitcoin you are looking to top-up in the Top-up amount box on screen. How this impacts the collateral and LTV of the loan will be displayed below.
To confirm the top-up click the Top-up button, and the top-up amount will immediately be debited from your CoinCorner BTC balance and the loan information updated to show the new figures.
Redeem
A 'redeem' or 'liquidation' is where the bitcoin collateral backing your loan is sold in order to reduce the LTV. Liquidations can be done automatically or manually by the user.
CoinCorner would automatically liquidate if the LTV value increases to such a level that we have to sell some of the bitcoin held as collateral to bring the LTV value back down to an acceptable level. Below are the LTV levels at which you or CoinCorner may be required to liquidate:
- 60% LTV - you will be notified by email and within your account that your LTV is approaching the Margin Call threshold (70%) and to take action to remedy this
- 70% LTV - a Margin Call will be issued prompting you to take action to bring the LTV to 60%. If after 72 hours your LTV is not at or below 60%, CoinCorner will automatically liquidate sufficient collateral to bring LTV down to that level
- 80% LTV - your loan will be put into Default and CoinCorner will automatically liquidate sufficient collateral to bring LTV back down to 60%
In some instances a user may want to redeem some of their collateral manually, for example if the bitcoin price increases and brings the LTV of the loan down to a low level. A user can manually redeem some of the collateral to increase the LTV and free up some of the collateralised bitcoin to be added back to your available BTC balance.
To redeem you will need to enter the amount of bitcoin you are looking to liquidate in the Redeem amount box on screen. How this impacts the collateral and LTV of the loan will be displayed below.
To confirm the redemption click the Redeem button and the redeem amount will immediately be debited from the collateral and the loan information updated to show the new figures.
Have any questions? Get in touch!