A margin call (also called a collateral call) occurs when the price of the cryptocurrency being used collateral for your SmartLOAN has fallen to a level that no longer supports the loan-to-value agreed upon when you signed your SmartLOAN agreement
Margin calls can occur during high volatility periods when the market price of crypto goes down. If the price of your collateral asset continues to fall, you may receive more than one collateral call from SmartFi.
You can avoid receiving collateral calls by keeping your SmartWALLET funded with your collateral asset.
To satisfy margin calls, you must deposit the amount requested to your SmartWALLET within 12 hours of the call being issued.
Failing to provide the necessary collateral when you get a margin call notification can result in the liquidation of your SmartLOAN and sale of your crypto collateral.