LTV, margin calls, and liquidation

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%, plus a 2% liquidation fee calculated on the BTC effectively liquidated and deducted from the liquidation proceeds. If after covering the debt the BTC that would be returned to you 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.

Quick facts

Item	Value
Margin call trigger	70% LTV
Partial liquidation trigger	80% LTV (exact; LTV is calculated without the fee)
Post-liquidation reset	65% LTV
Liquidation fee	2% of the BTC effectively liquidated, deducted from liquidation proceeds
Full liquidation trigger	When the BTC returned to the user after covering the debt would be below USDT 200
Automation	Fully automatic, non-appealable
Margin call notification	Email
Residual debt for user	None. Roxom absorbs shortfall.

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.

What goes into total debt?

Total debt is more than the amount you originally borrowed. On every relevant event the system recalculates three components:

Principal: The original loan amount. Decreases with every partial repayment or partial liquidation.
Accrued interest: Added every 24 hours on the current total debt. This pushes LTV up even when BTC price doesn’t move.
Repayments applied: Each payment reduces the debt: accrued interest first, then principal. LTV falls accordingly.

The liquidation fee is not included in the LTV calculation. The fee is calculated on the BTC effectively liquidated and deducted from the liquidation proceeds when the partial liquidation executes. This keeps the 80% trigger predictable and independent of fee mechanics.

LTV zones

LTV	Status	System action
0%-70%	Safe zone	Real-time monitoring. No alerts.
70%-80%	Margin call zone	Email notification sent. Loan stays active.
≥ 80%	Liquidation zone	Partial 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.

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.

Reference price

LTV is calculated using Roxom’s internal BTC price, the same BTC price you see across the Roxom platform. There is no separate “mark price” or external oracle for Loans, the price that drives your LTV, your margin call trigger, and your liquidation trigger is the BTC price shown in the Roxom UI.

What happens if the BTC price drops?

Level	LTV	Action	Reset
Margin call	70%	Email notification. Add collateral or repay.	n/a
Partial liquidation	80%	System sells the minimum BTC needed to bring LTV to 65%, and charges a 2% fee on the BTC liquidated, deducted from the liquidation proceeds.	65%
Full liquidation	When the BTC that would be returned to the user after covering the debt would be below USDT 200	Full loan closure.	n/a

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. There is no second notification between 70% and 80%; the margin call email is the single warning.

Is liquidation automatic and can it be stopped?

Yes, fully automatic, with no human intervention. By accepting the Terms and Conditions, you irrevocably authorize Roxom to execute liquidation when thresholds are crossed.

It cannot be paused, cancelled, or appealed once the LTV reaches the liquidation trigger.
It cannot be reversed if the BTC price recovers afterward. BTC sold during a partial liquidation is not returned to you, even if the market bounces back.

Automation removes the risk of delayed or discretionary intervention in 24/7 digital asset markets.

Can I avoid liquidation?

Yes. You can:

Add BTC as a top-up via Adjust → Increase Collateral.
Repay part of the loan via Repay to bring LTV below the threshold.

The system warns you at 70% to give you time to act.

How the 2% liquidation fee is calculated

The fee is 2% of the gross amount of BTC effectively liquidated and is deducted from the liquidation proceeds before they are applied to interest and principal. It is not a fee on your total debt. The LTV that triggers the liquidation does not include the fee.

liquidation_fee_btc = btc_liquidated × 0.02

In other words: for every BTC the system sells in a liquidation, 2% of that amount stays with Roxom as the fee, and the remaining 98% becomes the proceeds available to cover the debt. This is consistent with the Terms & Conditions (Section 10.2), where the fee covers the operational, execution, and slippage costs of the liquidation process.

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%, taking into account that only 98% of the sold BTC is applied to repay the debt (the other 2% is the liquidation fee).

Formula and variables

With:

C = BTC collateral at the moment of liquidation
D = total debt in USD (principal + accrued interest)
P = liquidation trigger price (BTC/USDT)
f = liquidation fee rate = 0.02
LTV_target = post-liquidation target LTV = 0.65
B = BTC liquidated (sold from collateral)

Mechanics

When B BTC are liquidated at price P, the gross USD proceeds are B × P. The liquidation fee is deducted from those proceeds:

Liquidation fee (BTC equivalent): B × f
Net proceeds applied to debt: B × P × (1 − f)

After the partial liquidation:

Remaining collateral: C − B
Remaining debt: D − B × P × (1 − f)

Target condition

The resulting LTV must equal 65%:

(D − B × P × (1 − f)) / ((C − B) × P) = LTV_target

Derivation

Solving for B:

B = (D − LTV_target × C × P) / (P × ((1 − f) − LTV_target))

With LTV_target = 0.65 and f = 0.02, (1 − f) − LTV_target = 0.33, so:

B = (D − 0.65 × C × P) / (P × 0.33)

Edge case

If (1 − f) − LTV_target ≤ 0, partial liquidation is mathematically impossible and the system executes a full liquidation instead. With current parameters (f = 0.02, LTV_target = 0.65) the denominator is positive (0.33), so this edge case never triggers under normal operation. It would only become an issue if LTV_target ≥ 1 − f = 98%.

Worked example

Scenario: 1 BTC collateral, USDT 45,000 total debt, liquidation trigger price USDT 60,000/BTC.

Variable	Value
`C` (collateral)	1 BTC
`D` (total debt)	45,000 USDT
`P` (liquidation price)	60,000 USDT/BTC
`f` (fee rate)	0.02
`LTV_target`	0.65

Applying the formula:

B = (45,000 − 0.65 × 1 × 60,000) / (60,000 × 0.33)
B = (45,000 − 39,000) / 19,800
B = 6,000 / 19,800
B ≈ 0.3030 BTC liquidated

Verification:

Component	Value
BTC liquidated (`B`)	0.3030 BTC
Liquidation fee (`B × f`)	0.00606 BTC
Net proceeds applied to debt (`B × P × (1 − f)`)	17,818 USDT
Remaining collateral (`C − B`)	0.6970 BTC
Remaining collateral value (USD)	41,818 USDT
Remaining debt (`D − B × P × (1 − f)`)	27,182 USDT
Resulting LTV	27,182 / 41,818 = 65.0% ✓

What happens after a liquidation?

Proceeds from the liquidated BTC are applied in this order:

The 2% liquidation fee on the BTC liquidated is deducted from the gross proceeds first.
Accrued interest is paid next.
Principal is paid after interest.
Any remaining collateral (BTC that was not liquidated) is returned to the user’s funding account.

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.

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LTV, margin calls, and liquidation

TL;DR

Quick facts

What is LTV and why does it matter?

What goes into total debt?

LTV zones

How threshold prices are calculated

Reference price

What happens if the BTC price drops?

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

Is liquidation automatic and can it be stopped?

Can I avoid liquidation?

How the 2% liquidation fee is calculated

How much BTC is sold in a partial liquidation?

Mechanics

Target condition

Derivation

Edge case

Worked example

What happens after a liquidation?

​TL;DR

​Quick facts

​What is LTV and why does it matter?

​What goes into total debt?

​LTV zones

​How threshold prices are calculated

​Reference price

​What happens if the BTC price drops?

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

​Is liquidation automatic and can it be stopped?

​Can I avoid liquidation?

​How the 2% liquidation fee is calculated

​How much BTC is sold in a partial liquidation?

​Mechanics

​Target condition

​Derivation

​Edge case

​Worked example

​What happens after a liquidation?

TL;DR

Quick facts

What is LTV and why does it matter?

What goes into total debt?

LTV zones

How threshold prices are calculated

Reference price

What happens if the BTC price drops?

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

Is liquidation automatic and can it be stopped?

Can I avoid liquidation?

How the 2% liquidation fee is calculated

How much BTC is sold in a partial liquidation?

Mechanics

Target condition

Derivation

Edge case

Worked example

What happens after a liquidation?