A threshold event where collateral value has dropped close to liquidation, requiring the borrower to add collateral or reduce the loan.
A threshold event where collateral value has dropped close to liquidation, requiring the borrower to add collateral or reduce the loan. Lygos issues an informational at-risk alert at 80% LTV but has no mandatory margin-call step. Borrowers may choose to add Bitcoin collateral or make a partial repayment; automatic liquidation occurs at 90% LTV through the pre-signed DLC flow.
A margin call is a warning issued when a borrower's collateral value declines to a level that approaches the liquidation threshold. The borrower typically has a limited window to either add more collateral (topping up) or partially repay the loan to restore the LTV ratio to a safe level. In traditional finance, margin calls are common in margin trading and securities lending. In Bitcoin-backed lending, margin calls are triggered by drops in the BTC/USD price. Platforms differ in how much notice they provide and what options borrowers have to respond.
Lygos issues an informational at-risk alert at 80% LTV but has no mandatory margin-call step. Borrowers may choose to add Bitcoin collateral or make a partial repayment; automatic liquidation occurs at 90% LTV through the pre-signed DLC flow.
Margin call if BTC drops
38%
Liquidation if BTC drops
44%
Loading live BTC price... $64,000
| Lygos | Ledn | Nexo | Unchained | |
|---|---|---|---|---|
| LTV | 50–70% | 50% | 50% (BTC) | 50% (200% CTP) |
| Custody | Non-custodial (DLC) | Custodial (segregated) | Custodial | Collaborative multisig |
| Technology | Discreet Log Contracts (Bitcoin-native) | Centralized custody | Centralized custody | 2-of-3 multisig (manual) |
Understanding Margin Call is critical when comparing loan offers. This concept directly affects how much you pay, how much collateral you need, or what happens if market conditions change during your loan.
Starting at 10% APR, $0 origination fees, and DLC-secured collateral on the Bitcoin blockchain.