I like the idea of the loan based on cryptos, but if the market in it's down trand and my bitcoin loses the value or i can’t repay my loan? I mean, do I lose all my crypto in this case?
In case if you can repay the loan in fiat you can make a request to Cereal to sell part of the deposit at the market price in the equivalent of the debt. If the collateral value drops by Cereal level, we send you a warning that the deposit funds are insufficient. In this case you can:
Increase deposit to the level required;
Pay off a part of the debt to comply with the deposit amount or repay the debt in full;
If the first two actions are not possible, sell part of the assets in the equivalent of the remaining debt
If the deposit loses its value till the lower limit of the credit risk, we initiate an automatic margin call. Cereal sells deposit at a market price in order to repay the principal.investors and the accrued interest. The remainder is sent back to the Borrower.
