I'm curious if you know what happens if there's a significant drawdown. Does one need to add more collateral to avoid partial liquidation? Guessing so, but never seen it addressed
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Yeah typically the lender wants you to maintain a certain LTV (typically ~50%) if that goes up they will probably ask you to add more collateral and when a threshold is met and no additional collateral is added they liquidate the collateral to protect the loan
Yes margin call at 70% LTV with 24 hrs to bring collateral up to 60% and 80% causes liquidation. It’s a bad idea.