CBL-Understanding the Margin Call & Liquidation Process

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

At Figure Markets, we prioritize the security of your assets and the stability of your loan. Because cryptocurrency values are subject to market volatility, we use Loan-to-Value (LTV) thresholds to monitor the health of your collateral.

This article outlines how margin calls are triggered, how to "cure" them, and what happens in the event of a liquidation.

What is a Margin Call?

A Margin Call is a formal request for additional collateral or a principal payment. It is triggered when your LTV ratio rises toward or exceeds our accepted range, indicating that the market value of your collateral has decreased relative to your loan balance.

The Margin Call Curing Policy

When a margin call occurs, you are granted a 48-hour cure period to restore your LTV to a compliant level. However, please note that this window is contingent upon market stability. If the collateral value reaches the 90% Liquidation Threshold, the grace period is effectively voided. To protect the integrity of the position, a full liquidation will be triggered instantly to mitigate the risk of a deficit. We strongly encourage proactive monitoring of your LTV during this time.

How to Cure Your Loan:

1. Add Collateral: Deposit additional collateral that is specific to your loan.  Note:  it could be BTC/ETH or SOL.  

2. Make a Payment: Submit a principal payment via your dashboard or mobile app to reduce the loan balance.

3. Market Recovery: If the market price of your cryptocurrency increases and naturally brings your LTV below the required threshold within the 48-hour window, the margin call will be automatically cured.  Note:  Full Liquidation: If the market value continues to drop and hits the 90% Liquidation Threshold, the 48-hour grace period is nullified. A full liquidation will occur immediately to prevent the loan from becoming under-collateralized.

4. You have the choice to bring your loan back to the Initial Margin Call Cure LTV threshold, which builds in a larger buffer against market swings. Alternatively, maintaining a position closer to the limit offers less lead time to react if prices shift again.

Liquidation Events
We will notify you of any changes to your loan status via email and through your borrower dashboard or mobile app. These notifications include your current LTV, the amount required to cure the loan, and your deadline. Make sure notifications are enabled in your Figure Markets App. Failure to address a margin call may result in the sale of your collateral to satisfy the loan obligation.

• Partial Liquidation: If the loan is not cured within 48 hours, a partial liquidation may occur to bring the LTV back to a safe level, regardless of subsequent market recovery.

• Full Liquidation: If the market value continues to drop and hits the 90% Liquidation Threshold, the 48-hour grace period is nullified. A full liquidation will occur immediately to prevent the loan from becoming under-collateralized.

   

Disbursement of Residual Assets

In the event of a liquidation, Figure Markets may elect to liquidate the entire collateral position or only the portion required to satisfy the outstanding loan balance. Any residual assets—including USD (Domestic), USDC (International), or remaining digital collateral—will be returned as follows:

• Mobile-Originated Loans: Residual collateral will be automatically swept to your Figure Markets MPC wallet. This process typically occurs within a three-business-day window.

• Web-Originated Loans (Anchorage Custody): Within three business days, you will receive a formal request via email to designate a destination wallet address for your remaining assets. Once you have provided a verified address, the disbursement will generally be completed within 24 hours.

Threshold Schedules

Your specific thresholds depend on your loan's interest rate and initial liquidity level.

US Loans

8.91% (up to 9.99% APR)² Interest Rate Loans (Initial LTV up to 50%)

11.5% (up to 12.62% APR)² Interest Rate Loans (Initial LTV 51% – 75%)

International Loans

8.91% (up to 10.544% APR)⁵ Interest Rate Loans (Initial LTV up to 50%)

11.5% (up to 13.173% APR)⁵ Interest Rate Loans (Initial LTV 51% – 75%)

Stay Informed

We will notify you of any changes to your loan status via email and through your borrower dashboard or mobile app. These notifications include your current LTV, the specific amount required to cure the loan, and your deadline.

Make sure your notifications are enabled for your Figure Markets App.  

©2026 Figure Lending LLC

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.