I'm in the United States. I can't use CEL token. So if I wanted to for example, take $5K loan for 1% interest, with bitcoin as collateral, looks like the collateral is 1.08282 as of this time of writing for a LTV of 25%. I never took out a loan with crypto as collateral before since Blockfi's fees are crazy high compared to Celsius.
What LTV percentage will need to be reached before a margin call is called and risk liquidation? I listened to Alex's AMA and seems like Celsius actually reached out to their users about market volatility and risk of margin calls, requesting more collateral at that point, which is great.
Has anyone experienced a potential margin call and had to add more collateral? Was it easy?
Whats your loan length of time you taken for these type of loans? Reason why I ask this is just a subjective tally as a curious observation.
Im just trying to make sure I am able to mitigate risk of liquidation as I do have enough additional collateral for these loans, but just gives me anxiety about a first time loan with crypto.
All in all, this is a experiment for me and I want to try taking out a loan to see how the process goes for myself. Eventually if bitcoin does hit the hundreds of thousands to millions, etc, I would put up some bitcoin as collateral to buy a house for example to avoid these huge taxable events (potentially higher pending the election and possible long term capital gains tax laws of 40%?!?!) and instead, take advantage of low loan rates without selling my crypto the USA.
Thanks Celsians!
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