What happens if crypto prices drop?

[lingriiddd]

Interestingly, the mortgage terms typically remain unchanged even if your crypto collateral drops in value. Unlike margin loans, borrowers are not required to add more collateral if prices fall.

However, there is still risk. If you fail to make mortgage payments (usually after ~60 days), your pledged crypto can be liquidated. So while price volatility doesn’t trigger margin calls, defaulting on the loan can still cost you your assets.

[The_Walking_Dead]

No margin calls sounds nice… until liquidation hits later .

[Patapim]

Delayed risk is still risk....

[BrutalAge*gofast]

you don’t feel it… until you really feel it

[Capybara_Capybara]

crypto drops + missed payments = double pain

[059d96d16a]

looks safer than margin, but not risk-free

[d82ae58262]

volatility doesn’t trigger it, but life does

[9777089235]

this is more about cash flow risk than price risk

[BrutalAge*gofast]

people underestimate that 60-day window

[UndeadBeastMonkeykiller]

no margin call ≠ no consequences

[febe3f2e35]

timing matters more than price here

[0c4535c1a0]

you’re basically betting on your income stability

[ChewBeast]

one bad period and collateral is gone

[d82ae58262]

smart structure, but still unforgiving

[GummyBear]

feels calm on the surface, risky underneath