If the value of the collateral assets decreases significantly, the borrower will be warned several times to manage her or his contract. The following solutions are available in INLOCK: adding more collateral to manage the collateralization level (LTV) or partially repaying the loan to increase collateralization level or as a last resort you can terminate the contract.
If the borrower fails to respond to the notifications, then there is a risk of the margin call. The margin call level is 105,1%, which means that the margin call will be performed when the USD value of the collateral is less than 105,1% of the loan debt. Reaching the margin call level results in a final and immediate termination of the collateral, and the associated fees will be automatically deducted. Furthermore, your collateral will be used to pay your loan back and in case of not being other collateral in the contract, your lending contract will automatically be closed.