CBL - How to Enable Liquidation Protection - Mobile – Figure Markets

This content is for informational purposes only and does not constitute financial advice.

Here are the step-by-step instructions for initiating and securing a Liquidation Protection Crypto-Backed Term Loan (CBL) through the mobile app.

Note: Liquidation Protection can only be added when signing up for a loan, not after a loan has been activated.

Liquidation protection is only available in CA, NY, FL, PA, AL, AK, GA, HI, MA, UT⁴

Step 1: Start the Application

Access Borrow Section: On the mobile app's Home Screen, tap the "Borrow" button (located at the bottom of the screen).
Start New Loan: Tap "Apply for another loan."
Select Term Loan: Select the Term Loan option to continue.

Step 2: Using the Loan Calculator

Enable Liquidation Protection: Enable the Liquidation Protection by selecting the box next to "Enable Liquidation Protection - Upfront 2% fee applies for Bitcoin and 4% for Ethereum"
Select Asset: Use the dropdown menu to designate the cryptocurrency (Bitcoin or Ethereum) you wish to pledge as collateral.
Enter Collateral Amount: Enter the amount of collateral you will commit. Note: This amount must be the number of coins, not a dollar value.
Enter Cash to Borrow: Enter the amount of cash you wish to borrow. The Liquidation Protection Loan is exclusively available for Loan-to-Value (LTV) ratios up to 50%, with an associated interest rate up to 8.91%(12.177% APR) for BTC and 8.91%(14.356% APR) for ETH.^1,2 The system will automatically display your available borrowing range (minimum to maximum), which is visible directly below the "Cash to Borrow" box.
Confirm Terms: Select the Confirm Terms option to continue.

Step 3: Review and Confirm Terms

Review Offer Terms: Verify your loan details, including the term length, cash to borrow, initial LTV, origination fee, APR, total loan amount, and required collateral. You will also be prompted to review our Electronic Communications Policy, Terms of Service, and Privacy Policy.
Submit Application: If you are ready to proceed, scroll to the bottom and click "Submit Application." If you need to adjust any of your details, simply click the back button in the top-left corner to return to the loan calculator.

Step 4: Review and Sign Contract

Review Contract: On the Review Contract screen, carefully read through your final loan documents.

For your convenience, you can also click "Download" on the contract screen, which will enable you to email, print, or save the contract for further review.
Agree to Terms: Once you have reviewed the documents and are satisfied with the terms, scroll to the bottom of the contract and click "Agree" to proceed.

Step 5: Send Collateral to Secure Funding

Access Wallet Address: You will be prompted to send in the required collateral on the Add Collateral screen. Copy the deposit wallet address by clicking "Copy Address."
- Send a Small Test Amount: You have the option to send a test amount first by clicking "Send a Small Test Amount".
Confirm Transfer: Once you have successfully sent the required collateral, click "I've sent collateral".
- Look out for confirmation: Once you click on "I've sent collateral" you will receive a confirmation that you will be notified once the collateral has been received. To exit, select "Got It".

The collateral should process within 24 hours, and you will be notified once the loan has been funded.

⁴A one-time, non-refundable Protection Fee is paid at loan origination to enroll in the Liquidation Protection Program, an optional service available for loans secured by certain digital assets. This service provides temporary forbearance from liquidation if your collateral value falls below the margin call threshold, subject to all terms and conditions of the Loan Agreement.
No Risk Transfer or Insurance: The Liquidation Protection Program is a service—not an insurance policy, derivative, or risk-transfer arrangement. The borrower does not acquire any ownership, rights, or interests in any hedge instrument that may be used by the platform. The Program simply delays liquidation for a fixed, predetermined period while the loan remains in good standing.
Program Limitations, Default, and Termination of Protection: Liquidation Protection does not eliminate all liquidation risk. Liquidation Protection applies only while the loan remains in good standing. The Program does not apply in the event of payment delinquency, default, or any other breach of the Loan Agreement. The Program immediately terminates if you fail to make a required payment when due or otherwise default under the Loan Agreement. Collateral may still be liquidated under those circumstances.
Borrower Responsibility: Participation in the Program does not alter your obligation to repay principal, accrued interest, or applicable fees in full. The collateral remains encumbered until the loan is repaid or satisfied. Borrowers are responsible for understanding all associated risks and loan terms before participating in the Program.
Interest Deferral Feature: By default, borrowers are opted into an interest-deferral feature, which allows interest to accrue and be added to principal with no monthly payment requirement. This feature is provided at no additional cost to the borrower. Borrowers may opt out of interest deferral at any time after origination and elect to make monthly interest payments at their discretion. Accrued interest continues to compound during the deferral period and is due upon repayment, refinance, or liquidation of the loan.
Loan Liquidation and Margin Requirements: The platform may impose additional collateral requirements, margin calls, or liquidation triggers in accordance with its risk management policies, during the term of participation in the Program. Liquidations will still occur if the loan becomes delinquent. Liquidation Protection applies only to price declines, not to missed payments, defaults, or violations of loan terms.
Borrower Obligations: You remain responsible for repayment of principal, accrued interest, and any applicable fees regardless of the performance of crypto or the value of the put hedge.
Tax and Regulatory Treatment: Borrowing against crypto may have tax, legal, or accounting implications depending on your jurisdiction. You are solely responsible for determining and reporting any tax obligations associated with this transaction. Neither the platform nor its affiliates provide tax, investment, or legal advice.
Counterparty and Custody Risks: crypto collateral and any associated hedge instruments may be held with third-party custodians, clearing brokers, or counterparties. Losses due to counterparty failure, market disruption, or cyber events may not be recoverable.
No FDIC or SIPC Insurance: Digital assets and loans secured by them are not insured by the Federal Deposit Insurance Corporation (FDIC), the Securities Investor Protection Corporation (SIPC), or any government agency.

Figure Lending LLC dba Figure 5200 77 Center Drive, Suite 400, Charlotte, NC 28217 819-6388. NMLS ID 1717824. For licensing information go to www.nmlsconsumeraccess.org

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Equal Opportunity Lender For general customer support, call (888) 819-6388 Monday - Friday, 6am - 9pm PT, Saturday - Sunday, 6am - 5pm PT (excluding holidays).

Equal Housing Opportunity

This site is not authorized by the New York State Department of Financial Services. No mortgage solicitation activity or loan applications for properties located in the State of New York can be facilitated through this site.

Digital currency is not legal tender, is not backed by the government, and BIA accounts are not subject to FDIC or SIPC protections.

Availability:
Crypto loans are offered to U.S. borrowers by Figure Lending LLC. This product is not available to U.S. residents of DC, ID, IL, KY, MD, MS, SD, TX, VT, or VA.
Crypto loans are offered through Figure Markets Credit LLC to residents of the state of New York and to international customers except in the following jurisdictions: Crimea (Ukraine), Donetsk (Ukraine), Luhansk (Ukraine), Afghanistan, Albania, Belarus, Central African Republic, Congo (the Democratic Republic), Cuba, Ethiopia, Haiti, Iran (Islamic Republic of), Iraq, Lebanon, Libya, Mali, Myanmar (Burma), Nicaragua, Nigeria, North Korea (Democratic People's Republic of), Pakistan, Palestine (State of), Russia, Somalia, South Sudan, Sudan, Syria, Ukraine, Venezuela, Yemen, or Zimbabwe.

Lender & Licensing:
Figure Markets Credit LLC. 650 S. Tryon Street, 8th Floor, Charlotte, NC 28202. (888) 926-6259. NMLS ID 2559612. For licensing information, go to www.nmlsconsumeraccess.org

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Investing in cryptocurrencies involves significant risks. Cryptocurrency trading is not available in NY. Please click here for risk disclosures on investing and trading in cryptocurrencies.

Figure Payments Corporation offers self-directed investors and traders cryptocurrency services. It is neither licensed with the SEC or the CFTC nor is it a Member of NFA. Figure Payments Corporation's NMLS ID number is 2033432, and is located at 100 West Liberty Street, Suite 600, Reno, NV., 89501. You can verify Figure Payments licensing status at the NMLS Consumer Access website. Click here for Figure Crypto's state license and regulatory disclosures.

Crypto Loans starts at a minimum of $5,000, subject to state and jurisdiction-specific legal limitations. Your loan amount will ultimately depend on the amount of collateral in your account and your eligibility will be determined by your state or jurisdiction of residence, credit profile, and other personal information available at the time of your application.

¹General minimum and maximum loan amounts may vary subject to state-specific legal limitations.

²Repayment Period (Minimum-Maximum): 12 months
Maximum APR: 12.62% APR (APR includes interest plus applicable fees such as the 1% origination fee). Available interest rates for Figure's Crypto-Backed Loan are 8.91% (9.999% APR) at 50% LTV or 11.50% (12.62% APR) up to 75%.
Representative Example (Total Cost): As an example, a borrower receives a Crypto Backed Loan at 50% LTV of $10,000 for a term of 12 months, with an interest rate of 8.91% and a 1% origination fee of $100, for an APR of 9.999%. In this example, the borrower will receive $10,000 and will make 12 monthly payments of $74.25. Rates will be higher for applications secured by assets with a higher LTV ratio. The Figure Crypto-Backed Loan has a 12 month interest-only repayment term and allows for a maximum initial LTV ratio of 75%. Interest rates change frequently so your exact interest rate will depend on the date you apply and may depend on many factors such as LTV ratio.

³Obtaining a crypto-backed loan generally does not trigger an upfront taxable event. Tax treatment may vary based on individual circumstances. Consult your tax advisor.

⁴Liquidation protection is only available in CA, NY, FL, PA, AL, AK, GA, HI, MA, UT. Liquidations will still occur if the loan becomes delinquent. More information about liquidation protection can be found here. The Figure Crypto Backed Loan (CBL) allows eligible users to borrow U.S. dollars secured by crypto collateral. The maximum loan-to-value (“LTV”) ratio is 50% at origination.

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