What Happens If I Don't Pay Back My Loan from CoinRabbit?
CoinRabbit requires borrowers to submit collateral before approving a loan. When you cannot pay back your loan or your LTV drops below a certain threshold, some or all of your collateral will be used to repay your loan. However, CoinRabbit allows you to leave your loan open indefinitely, so you can keep your loan active until your circumstances improve.
You've taken out a loan on CoinRabbit, but then life happens and you find you are not able to pay it back. What happens if you don't pay back your loan from CoinRabbit? You can learn more about CoinRabbit loan repayment by contacting customer support here, and below are things you need to know about repaying your loan.
Important Things to Know About CoinRabbit Loans
All CoinRabbit loans are backed by collateral submitted when someone takes out a loan, but what happens to that collateral while the loan is open? CoinRabbit has three thresholds where borrowers will be notified if their loan to value (LTV) ratio drops, so they can add to their collateral holdings to avoid liquidation. These zones, designated by yellow, orange or red, alert the borrower their crypto is in jeopardy, allowing them to help head off liquidation.
If you do not increase your crypto amount when alerted by CoinRabbit, part or all of your collateral will be used to satisfy your loan. In other words, you risk losing your collateral when your LTV drops too low.
Another feature of CoinRabbit loans is the open term for repayment. Loans do not have to be repaid in a set timeframe, and interest accrued is not due until the loan is paid and collateral returned. Because of this open term, you can keep your loan open to rebuild assets, but make sure you have enough coins to maintain your LTV ratio.
You can contact customer support here at any time for assistance with your loan. If you cannot repay your loan, customer support can help you set up a repayment plan to protect your collateral.
Bottom Line
The bottom line is CoinRabbit has tried to make the crypto borrowing process as painless as possible. By offering flexible repayment terms and adding alerts to your account, you can head off liquidation and protect your collateral. Failure to repay your CoinRabbit loan can result in the forfeiture of your collateral.
CoinRabbit wants to help traders have a successful borrowing experience. For more information or assistance, contact CoinRabbit customer support here.
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