Margin Call

What is Margin Call?

A notification that the collateral value has dropped close to the liquidation threshold, requiring the borrower to add collateral or reduce the loan. Lygos provides clear margin call notifications with sufficient time to respond. You can add more Bitcoin collateral or make a partial repayment to bring your LTV back within range. Because all outcomes are pre-defined in the DLC, you always know exactly what BTC price triggers a margin call and what price triggers liquidation. There is no ambiguity.

Full Definition

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.

How Lygos Uses This

Lygos provides clear margin call notifications with sufficient time to respond. You can add more Bitcoin collateral or make a partial repayment to bring your LTV back within range. Because all outcomes are pre-defined in the DLC, you always know exactly what BTC price triggers a margin call and what price triggers liquidation. There is no ambiguity.

Margin Call Simulator

Full calculator

Starting LTV

20%50%70%

Current BTC price$100,000

Margin call at 75% LTV$66,667

Liquidation at 85% LTV$58,824

Margin call if BTC drops

33%

Liquidation if BTC drops

41%

Loading live BTC price... $100,000

How Lenders Compare

	Lygos	Ledn	Nexo	Unchained
LTV	50%	50%	50% (BTC)	50% (200% CTP)
Custody	Non-custodial (DLC)	Custodial	Custodial	Collaborative multisig
Technology	Discreet Log Contracts (Bitcoin-native)	Centralized custody	Centralized custody	2-of-3 multisig (manual)

Full comparison

Why this matters for borrowers

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.