Having an open credit line in the dynamic crypto market, or even during stable market times, can sometimes be challenging. But, as always, Nexo is here to help. To make borrowing against your assets completely stress-free, we have created a brand new solution to help you further protect your assets from liquidations.
🆕 Unlock Fixed Terms
We’ve made an upgrade to our Automatic Collateral Transfer feature – Unlock Fixed Terms. When Unlock Fixed Terms is enabled and all FLEX Terms are already transferred from the Savings Wallet to the Credit Line Wallet, the system will automatically start unlocking Fixed Terms and collateralizing these assets to prevent automatic repayments.
With this feature you can:
- Maintain a healthy LTV during market volatility.
- Prevent liquidations by having otherwise locked assets automatically transferred to your Credit Line Wallet.
As soon as your LTV reaches 83%, Automatic Collateral Transfer will begin moving small amounts of assets in your Savings Wallet to your Credit Line Wallet to prevent automatic repayments. The feature will always prioritize assets in FLEX Terms, but if these are not enough to stabilize your LTV and Unlock Fixed Terms is enabled, the system will begin moving funds from your Fixed Terms.
To Enable Unlock Fixed Terms:
Simply, go to the Settings Tab of your Nexo account and the Enable button for Unlock Fixed Terms is located just under Automatic Collateral Transfer. Unlock Fixed Terms can’t be enabled if Automatic Collateral Transfer is disabled.
What About My Fixed Term Earnings?
If you enable Unlock Fixed Terms and your locked assets are collateralized during a market downturn, you’ll lose the interest you’ve accrued. However, the feature prioritizes Fixed Terms with the least amount earned, ensuring minimal losses in your Savings Wallet while preserving the funds in your Credit Line Wallet.
Here’s what will happen if you opt into Unlock Fixed Terms and the funds in your FLEX Terms are not enough to stabilize your LTV:
- The system will unlock the Fixed Term deposit with the least interest earned (in USD).*
- 100% of the accrued interest for this Fixed Term deposit will be deducted and only the initial balance will be unlocked and moved to Credit Line Wallet.
- All the assets in each Fixed Term deposit will be unlocked at once should the system need to collateralize part or all of the funds locked in this account.
*For example, if you have two BTC Fixed Terms, the system will automatically unlock the one with smaller accrued interest first. If the assets are enough to maintain the required LTV, your other Fixed Terms won't be unlocked.