How to borrow, top-up, and recall excess crypto collateral
Note: We recently made a YouTube video on how to deposit crypto through our mobile app. You can view it here.
When you want to take out a loan on MyConstant, you need to put up cryptocurrency as collateral. Currently, we offer loans against 70+ different cryptos to give our customers as many options as possible. Follow the steps below and you’ll have a loan in minutes.
The first step in the loan process is to click on the borrow icon.
On the borrow page, you can enter the loan amount (in USD or Stablecoins) and collateral type, interest rate, loan term, and whether you want to receive your loan in USD or another cryptocurrency (this was formerly our ‘Crypto Credit’ product that has now been merged with our Borrow page).
Note: You can only take out a loan equal to 66% of the value of crypto you put up.
If you choose to receive your loan in USD, you can withdraw it in USD or a USD-backed stablecoin to an external wallet. Or, you can choose to receive your loan in a supported cryptocurrency. In this case, we use your USD loan to buy crypto on your behalf, finding you the best possible price across multiple exchanges.
When you take out a loan on MyConstant, we walk you through the process of transferring your crypto to our escrow partner, Prime Trust.
Copy the MyConstant wallet address into your crypto wallet or scan the QR code from your wallet app and send your funds to secure your loan. All transfers should be completed within minutes.
Your loan will appear in your MyConstant Account balance and you can repay it by depositing funds into your MyConstant account. We accept USD, and 70+ cryptocurrencies, or the equivalent value in collateral.
After you completely pay off your loan, all collateral will be sent back to your coin balance immediately, where you can withdraw it to your wallet of choice.
How to top up collateral
Crypto is volatile, so in order to ensure that investor principal stays secure, we must sell your collateral if it falls below 110% of the loan value plus interest to date.
A simple way to make sure you don’t lose your collateral is to enable Auto Top-up in your MyConstant accounts page under the loans tab at the bottom. This permits us to automatically withdraw crypto from your coin balance in the case of a flash crash to make sure your loan is not liquidated.
*Please note, however, that the auto top-up feature only works for multi-collateral loans. If your loan is isolated, you must manually go in and top-up.
We will notify you via email when your collateral falls to 125%, 120%, and 115% of the value, so that you have ample warning to top-up. There are two ways to top up your collateral.
- For isolated loans, go to your Accounts page and click the Top-up button under Loan Details.
- For multi-collateral loans, top-up at the coin balance page (seen below). Click Deposit to send more cryptocurrency to your Available balance. Then, you can click Top-up to move the token from your Available balance to your Collateral balance.
Learn more about various types of loans (isolated and multi-collateral) in our blog.
The second is to go to accounts and click the Coin Balance button.
You will be taken to a page listing all of our collateral partners and your current balance in MyConstant. Find the coin you are using as collateral for a loan and click Deposit.
For both loan types, you will see a screen with a MyConstant wallet address and a QR code. Copy / paste the address into your wallet or scan the QR code with your mobile wallet app to quickly transfer your collateral and save your loan from liquidation.
Recall excess collateral
Things aren’t always doom and gloom in the crypto world. Sometimes the value of your collateral goes up while it is escrowed for a loan. When this happens, we let you withdraw excess collateral so you can use as much of your funds as possible.
To recall excess collateral you will need to again go to your Accounts page and click the Loans tab at the bottom. Under the Matched category, you should see a button that says Recall Excess next to the Repay and Top Up buttons. Give it a click.
After you recall excess, you will see your available balance in the Coin Balance page. To withdraw to a personal wallet, click the Withdraw button next to the crypto in the menu and copy across your wallet address. The transfer time is one business day.
Note: Under new rules, you will only be able to recall excess once the collateral value rate exceeds the default CTV multiplied by 110%
Now you are ready to start borrowing on MyConstant. Remember, only borrow what you can afford to repay. Let us know if you need any help.
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