What happens if the value of my crypto collateral drops?

Loan-to-Value (LTV) is the ratio of your loan amount to your collateral's value. For example, a $30K loan on $50K in BTC equals 60% LTV. Lower LTV means lower risk and a larger margin call buffer.

Maximum starting LTV varies by collateral type — Bitcoin up to 60%, Ethereum up to 55%, Solana and XRP up to 45%, and Pax Gold (PAXG) and Tether Gold (XAUT) up to 75%. A lower starting LTV provides more room for market movements, although it does not eliminate liquidation risk.

LTV fluctuates as your collateral's market price moves. If your crypto appreciates, LTV decreases. If it drops, LTV increases. We track LTV in real time using a 60-second CoinMarketCap price feed.

Yes. You can add more collateral or make a partial principal repayment at any time to lower your LTV. Both actions reduce margin call risk.

A margin call is triggered when your LTV reaches the margin call threshold for your collateral type — 70% for BTC, 65% for ETH, 55% for SOL/XRP, and 85% for PAXG/XAUT. For Bitcoin, we send a warning at 65% LTV before the margin call threshold.

24 hours from the margin call to add collateral, partially repay, or request liquidation. An extension may be possible if approved, but a liquidation threshold breach overrides any extension.

You have three options — add more crypto collateral (fastest), make a partial principal repayment via USDC, wire, or ACH, or request a partial liquidation (typically a 2% fee, to the extent not prohibited by state law).

Yes. We send proactive notifications via email and in-app alerts at every LTV threshold so you have time to act before any action is required.

Partial liquidation only occurs after an unresolved margin call (24-hour cure window expires) or when LTV reaches the liquidation threshold for your collateral — 80% for BTC, 75% for ETH, 65% for SOL/XRP, and 90% for PAXG/XAUT. Reaching this threshold can trigger partial liquidation before the 24-hour cure window ends.

Arch aims to sell only the collateral required to restore your loan to its target LTV rather than liquidating your entire position. A liquidation fee may apply under your loan agreement.

Typically 2% of the liquidated amount, to the extent not prohibited by state law. The fee covers the cost of the liquidation transaction and is deducted from the proceeds.

You can reduce liquidation risk by choosing a lower starting LTV, monitoring your loan health, adding collateral or making partial repayments. These actions do not eliminate risk. Reaching the liquidation threshold can trigger partial liquidation immediately, even during the 24-hour cure window.