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Documentation Index

Fetch the complete documentation index at: https://docs.roxom.com/llms.txt

Use this file to discover all available pages before exploring further.

Coming soon. The thresholds and mechanics described here apply to the Bitcoin-Backed Credit Line at launch.

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TL;DR

Loan-to-Value (LTV) is the ratio of your debt to the value of your BTC collateral. At 70% LTV the system sends a margin call email. At 80% LTV it runs a partial liquidation to bring LTV back to 65%, applying a 2% fee on the BTC sold. If the BTC that would be returned to you after covering the debt would be below USDT 200, the loan goes straight to full liquidation. If proceeds don’t cover the full debt in an extreme event, Roxom absorbs the shortfall. You are never left with residual debt.

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Quick facts

ItemValue
Margin call trigger70% LTV
Partial liquidation trigger80% LTV
Post-liquidation reset65% LTV
Liquidation fee2% on the BTC sold
Full liquidation triggerWhen the BTC returned to the user after covering the debt would be below USDT 200
AutomationFully automatic, non-appealable
Margin call notificationEmail
Residual debt for userNone. Roxom absorbs shortfall.

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What is LTV and why does it matter?

Loan-to-Value (LTV) is the ratio between your total debt and the real-time value of your collateral. If your BTC is worth USD 10,000 and your debt is USD 5,000, your LTV is 50%. If BTC price drops, LTV rises. If it rises too far, the system intervenes.

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What goes into total debt?

Total debt is more than the amount you originally borrowed. On every relevant event the system recalculates three components:
  1. Principal — The original loan amount. Decreases with every partial repayment or partial liquidation.
  2. Accrued interest — Added every 24 hours on the current total debt. This pushes LTV up even when BTC price doesn’t move.
  3. Repayments applied — Each payment reduces the debt: accrued interest first, then principal. LTV falls accordingly.

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LTV zones

LTVStatusSystem action
0% – 70%Safe zoneReal-time monitoring. No alerts.
70% – 80%Margin call zoneEmail notification sent. Loan stays active.
≥ 80%Liquidation zonePartial liquidation executed automatically.
The gap between the partial liquidation trigger (80%) and the reset (65%) is intentional. It prevents flip-flop during volatile price moves.

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How threshold prices are calculated

The system derives the exact BTC prices at which each threshold would be crossed and recalculates them on every change to debt or collateral (a repayment, an accrual, a top-up). 
margin_call_price = total_debt / (btc_collateral × 0.70)
liquidation_price = total_debt / (btc_collateral × 0.80)
The monitoring engine compares the live BTC price against these thresholds on every price tick. If the price falls below a threshold, the corresponding event is triggered.

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What happens if the BTC price drops?

LevelLTVActionReset
Margin call70%Email notification. Add collateral or repay.n/a
Partial liquidation80%System sells the minimum BTC needed to bring LTV to 65%, plus a 2% fee on the BTC sold.65%
Full liquidationWhen the BTC returned to the user after covering the debt would be below USDT 200Full loan closure.n/a

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How much time do I have between a margin call and liquidation?

Once a margin call is triggered at 70% LTV, the loan stays active and you can act (top-up or partial repayment) as long as the LTV stays below 80%. There is no fixed time window — the trigger is purely LTV-based. If the price keeps dropping and LTV reaches 80%, partial liquidation is executed automatically.

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Is liquidation automatic?

Yes. Fully automatic, with no human intervention. By accepting the Terms and Conditions, you irrevocably authorize Roxom to execute liquidation when thresholds are crossed. There is no appeal once executed. Automation removes the risk of delayed or discretionary intervention in 24/7 digital asset markets.

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Can I avoid liquidation?

Yes. You can:
  • Add BTC as a top-up.
  • Repay part of the loan to bring LTV below the threshold.
The system warns you at 70% to give you time to act.

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How much BTC is sold in a partial liquidation?

The system does not sell a fixed percentage. It sells the minimum amount needed to bring LTV back to 65%. The 2% fee is taken in BTC on top of the BTC sold to cover debt, so two amounts come out of the collateral: the BTC that covers the debt and the BTC that covers the fee.
With:
  • D = total debt at the moment of liquidation
  • C = BTC collateral
  • P = BTC price
  • B = BTC sold
  • f = 2% liquidation fee
The amount of BTC sold is:
B = (D − 0.65 × C × P) / (P × 0.337)
The constant 0.337 = 1 − 0.65 × 1.02 reflects the 65% target LTV combined with the 2% fee applied on the BTC sold.Remaining collateral after the liquidation:
C − B × (1 + f)
Remaining debt after the liquidation:
D − B × P

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What happens after a liquidation?

Proceeds are applied in this order:
  1. Accrued interest first.
  2. Then principal.
  3. The 2% liquidation fee is taken in BTC on the amount sold.
  4. Any remaining collateral is returned to the user.
If proceeds don’t cover the full debt, Roxom absorbs the shortfall. The user has no residual obligation after liquidation.
This content is for informational purposes only and does not constitute investment advice. Trading digital assets involves significant risk, including the potential loss of your entire investment. Please review our Risk Notice before trading.
Last modified on May 18, 2026