Security management is a critical aspect of the loan lifecycle, ensuring that sufficient collateral is maintained to support the loan while allowing flexibility for users to manage their security assets. The two primary actions involved in security management are top-up security and withdraw security.
Top-Up Security
Topping up security allows end users to increase the security associated with their loans. This is often necessary to maintain the required Loan-to-Value Ratio (LVR) or to prevent the loan from reaching automatic repayment thresholds.
End users can add more security (e.g., BTC, ETH) to their loan at any time (as long as there are no pending actions, see Allowed Actions for more details).
API for security top up
- Use Preview top up security to preview the new loan security and LVR after the top up
- Use Request top up security to top up the security for the loan
Loan status update
Top-up security doesn't require approval. The loan status is updated once Block Earner receive the security in the main account.
Businesses have two options when requesting a security top-up:
- Send the security to the main account along with the request: The loan status (security amount and LVR) is updated near instantly.
- Queue the request and wait for the pre-reckoning report: The loan status is updated when the reckoning is completed.
Withdraw Security
Withdrawing security allows users to reduce the collateral associated with their loan, provided that the remaining security meets the required LVR.
End users can request a withdrawal of excess security if their LVR is below the maximum threshold(as long as there are no pending actions, see Allowed Actions for more details).
API for security withdrawal
- Use Preview security withdrawal to preview the loan status after the security withdrawal
- Use Initiate security withdrawal to initiate the security withdrawal for the loan
Loan status update
Withdraw security doesn't require approval. The loan status is updated after the request has been received how the user will only receive the crypto security after the next reckoning.
The loan object will have a new pendingWithdrawCollateralCryptoAmount