How Does Liquidation Work?
What happens when LTV reaches the liquidation threshold: which collateral is sold, how proceeds are applied, fees, and what remains yours.
Updated
Liquidation is a last resort. It happens only if your LTV reaches the liquidation threshold in your final terms and the position has not been restored.
What Happens
Arvexo sells only as much collateral as is needed to bring your LTV back within limits, or to repay the loan in full if the shortfall is too large. The proceeds are applied to your outstanding balance, interest and any liquidation fee stated in your terms. Any collateral that remains stays in your loan wallet and is released once the loan is settled.
Liquidation is a taxable event in many jurisdictions. Consider speaking with a tax adviser about how it may affect you.
