The cryptocurrency market is a highly volatile environment, which sees some coins drop and rise in price by more than 30% weekly. Most cryptocurrency investors buy digital assets to hold for the long term in hopes of seeing substantial gains in their investments. But the long-term is usually unpredictable, and situations can arise where liquidity is needed, and investors are forced to sell their investments short. In light of this, cryptocurrency-backed lending has gained popularity, offering an alternative to investors.
But when investors get crypto-backed loans, they are still unavoidably dependent on market volatility. Crypto-backed loans are issued based on a fixed cryptocurrency price, and if crypto prices fall, a margin call may occur. The loan provider may liquidate the investor’s cryptocurrency used as collateral to cover losses at this point.
Money-4 Limited has developed Auto Margin Call Management technology for the crypto-backed lending app Nebeus, allowing Nebeus to monitor crypto market volatility and automatically manage loan collateral in case of a margin call. Nebeus users who get crypto-backed loans can now select the Auto Margin Call Management option, and Nebeus’s platform will automatically add collateral to their loan when approaching a margin call by taking funds from their main Nebeus account.
Auto Margin Call Management is a fantastic option that gives complete peace of mind to investors who take out crypto-backed loans on Nebeus.
Source : https://www.newswire.com/news/money-4-limited-develops-breakthrough-auto-margin-call-management-21633299
- Money-4 Limited