What is the 85% Reset?

The 85% Reset is the third part of the 90/85 Standard. When a partial liquidation is triggered at 90% LTV, APX sells only enough collateral to bring your loan back down to 85% LTV, not a dollar more. We stop selling the moment your LTV reaches 85%.

How is the amount sold calculated?

We calculate the smallest possible sale that reduces both your loan balance and your collateral value together until the ratio between them reaches 85%. Because both numbers move at the same time, the result is a partial sale, not a full payout of your loan.

Can you give an example?

Assumptions: $100,000 collateral, $90,000 loan balance, 90% LTV (liquidation triggered).

• APX sells $33,333 of collateral.
• New loan balance: $90,000 - $33,333 = $56,667.
• New collateral value: $100,000 - $33,333 = $66,667.
• Resulting LTV: $56,667 / $66,667 = 85%.

You keep $66,667 of your original collateral position, instead of as little as $5,263 under a typical full-liquidation model.

What happens after the reset?

Your loan continues as normal at the new, lower balance. If your collateral value drops again and LTV climbs back to 90%, another partial liquidation will trigger and reset your LTV to 85% again. Topping up collateral or making a repayment any time your LTV approaches 80% is the best way to avoid a partial liquidation altogether.