Thresholds & 24h Grace Window

Thresholds & 24h Grace Window

How We Measure It

LTV = Obligations / Discounted Collateral Value (USD).

• Obligations: Outstanding principal + accrued base APR + net accrued funding (if hedged) + pending execution costs.

• Collateral Value: 0FX × (oracle/TWAP) minus safety haircut (liquidity/volatility-aware).

Soft-Cap Thresholds (Start of Grace Window)

• USDT / USDC / BTC (WBTC) Loans (Hedged): Soft Cap: 40% LTV (Target 35%).

• ETH Loans: Soft Cap: 80% LTV (Target 70%).

Crossing the soft cap starts a 24h grace window.

What You Can Do Within 24h

• Add 0FX Collateral: Send to your per-position deposit address.

• Repay: Partial or full repayment in the same asset borrowed.

• Close Out: Request payoff quote; repay; we release collateral.

During the Window

• Monitoring continues; no size increases or new disbursements on that position.

• Restoring LTV below the target band clears the alert and closes the window.

Other Triggers That Can Start a Window

• Cumulative price-impact model predicting a worst-case unwind breaching the system cap.

• Oracle divergence/extreme volatility materially changing risk parameters.

Edge Cases

In rare “disorderly market” conditions, governance-approved safeguards may pause origination and accelerate de-risking across positions to remain inside the system impact cap. Notifications will be sent if such rules are invoked.