Margin Call

A margin call is a demand from your lender to either add more Bitcoin collateral or repay part of your loan — triggered when the value of your collateral falls below a specified threshold.

How margin calls work in Bitcoin lending

When you take a Bitcoin-backed loan, the lender monitors your LTV continuously. If Bitcoin's price drops and your LTV exceeds the lender's margin call threshold (typically 80–85%), you receive a margin call. You typically have 24–72 hours to respond, depending on the lender.

Your options when a margin call is triggered

1. Add more Bitcoin to your collateral — reduces your LTV back below the threshold 2. Repay part of the loan — reduces the loan balance, which reduces the LTV 3. Do nothing — the lender may liquidate some or all of your Bitcoin at the current price

Margin call vs. liquidation

A margin call is a warning. Liquidation is the consequence of ignoring it. Most lenders have a separate liquidation threshold (typically 90–95% LTV) at which they will sell your Bitcoin without further notice. The gap between margin call and liquidation threshold gives you time to act.

Products with no margin call

Bitcoin mortgages structured as conforming GSE-backed loans (e.g., Better + Coinbase) and qualify-with-crypto programs carry no margin call risk because your Bitcoin is not pledged as loan collateral.