How Do I Close My Line of Credit from CoinRabbit?
Closing your line of credit on CoinRabbit can be done as soon as you repay your loan in full. Once all the terms have been satisfied, you must reach out to customer support and request to close your loan. If your LTV drops below a 45% margin, CoinRabbit will use part or all of your collateral to repay your loan and close it automatically.
CoinRabbit, like many other exchanges, allows verified traders on its platform to lend or borrow crypto. Crypto lending is relatively new, but growing in popularity as more traders use this to increase profits. How do you close your line of credit from CoinRabbit? You can learn more about CoinRabbit's lending platform by contacting customer service here, and below is how you can close your line of credit.
Closing Your Line of Credit
There are two ways your line of credit can be closed. First, if the collateral reaches the liquidation level, your collateral will be removed from the storage wallet to pay off the line of credit. At that point, your line of credit will be closed by CoinRabbit, and you will be required take out a new line of credit if you wish to continue borrowing.
Once collateral is liquidated, CoinRabbit will not return it to you. Therefore, the platform gives traders several notices when the collateral value is reaching the liquidation point. This allows users to increase their collateral deposit to avoid forfeiture.
The second way the line of credit can be closed is when you fully repay your loan, receive your collateral back in your account and request closure by contacting customer support here. Your collateral cannot be returned if you have an outstanding balance.
Additional Information About CoinRabbit Loans
There are things you need to know about your line of credit. Below is additional information about CoinRabbit loans:
- You must have a minimum 50% LTV (loan-to-value ratio) as collateral. This means if you borrow $2000, you must deposit $4000 as collateral. Collateral protects you and the lender from losses if crypto value drops or the borrower does not repay the loan.
- It is important to monitor your LTV throughout your loan term to make sure the ratio doesn't drop below 50%.
- When tokens used for collateral fall below 45%, the line of credit or loan can be called (meaning the lender demands repayment) leading to forfeiture of collateral. However, CoinRabbit does notify users via text or email when collateral is in jeopardy.
- Loans are peer-to-peer meaning currency for lending is provided by other traders.
- If you fully pay off your loan before 30 days from receiving it, you will be charged a $100 fee.
- The current APR on a CoinRabbit loan is roughly 14% interest.
Closing your line of credit on CoinRabbit is easy. Simply repay your loan in full, get your remaining collateral returned to you and reach out to customer support to close the loan. For more information or assistance, contact CoinRabbit customer support here.
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