If the value of your collateral drops, your Loan-to-Value (LTV) ratio increases. APX Lending has built-in safeguards to protect both you and the platform when this happens.

Soft Margin Call: At 80% LTV

When your LTV rises to 80%, you enter what we call a soft margin call.

• This is a warning zone, not an automatic liquidation.

• You’ll receive email notifications every 6 hours reminding you of your current LTV.

• At this stage, you have three options:

1. Top Up Your Collateral

   • Deposit more BTC or ETH to lower your LTV.

   • Example: If your loan is $50,000 and your BTC collateral falls from $100,000 to $65,000 (LTV ~77%), adding $10,000 in BTC drops your LTV back to ~70%.

2. Repay Part of Your Loan

   • Paying back a portion of your loan also lowers LTV.

   • Example: If your LTV is 82%, repaying $5,000 of the loan could bring it back to ~75%.

3. Do Nothing

   • You can choose to wait and monitor your position.

   • However, if your LTV rises further to 90%, liquidation will be triggered.

Liquidation: At 90% LTV

If your loan reaches 90% LTV, liquidation is automatic.

• A portion of your collateral will be sold to restore your loan back to the original LTV at issuance.

• A 5% processing fee applies to the liquidated collateral, as outlined in your loan agreement.