Margin call FAQ
Celsius loans are backed by crypto, which is locked as “collateral”.
Your locked collateral value has to be maintained to an agreed value, in comparison to how much you’re borrowing.
For example, if you borrowed $1,000 you’ll need to have collateral valued at $2,000. Or an LTV (Loan to Value) of 50%.
When the value of your collateral drops, a margin call will automatically be triggered.
When a margin call is triggered on your loan, you'll receive an email notification and the easiest way to close the margin call is to add additional crypto as collateral.
All you need to do is make sure that you have enough crypto available in your Celsius wallet to bring your collateral value back to the agreed amount. When you do, reply to your margin call notification email, or contact email@example.com to let our team know.
How do I add collateral?
Once your coins are in your Celsius wallet, just contact the loans team (firstname.lastname@example.org) or reply to your margin call notification email and they’ll add the collateral for you
How much collateral do I need to add?
When a margin call is triggered, we need you to reduce your LTV back to the agreed LTV level.
For example, if have a 33% LTV, and your margin call is triggered at 65% - You need to reduce the LTV back down to 33%
You would have received an email notification showing how much collateral was needed when the margin call was triggered.
Depending on the market movements after the notification was sent, you might need to add more, or less collateral.
Can I add a different coin as collateral?
At the moment, we can only add the same crypto as originally locked as collateral.
For example, if your loan is BTC backed, we would need you to add more BTC.
My LTV is below 65%, is my margin call closed?
Once a margin call is triggered, you'll need to reduce your LTV back to the agreed value.
What happens to the additional crypto?
The additional crypto is locked as collateral on your loan. At the end of your loan term, once the loan is repaid, your collateral will be released back to you.
Can I close my loan instead?
Yes, if you don’t want to add additional collateral, and if you would prefer, you can choose to close your loan. Reply to your margin call notification email to request your loan closure, or contact email@example.com
Can I pay down on my loan instead?
Yes, if you aren't able to add more crypto and would prefer to reduce your loan amount, you can.
What happens when the market goes back up?
When your locked collateral is worth more than the agreed amount, we can release the excess collateral back to your Celsius wallet.
What happens if I don’t do anything?
If you don’t take any action, we may add additional collateral from the available funds in your Celsius wallet.
If you don’t have enough funds to do that, we may also liquidate collateral.
What does liquidation mean?
Liquidation of collateral is the sale of collateral. This something that we try our best to avoid and something that we only do as a last resort.