When the collateral ratio falls below the minimum, the system can liquidate the loan. It closes the position and uses the collateral to cover the debt.
The loan no longer exists afterwards. You cannot add collateral or repay it anymore, because the system has already acted.
Collateral is used to cover the debt that was borrowed. What remains, if anything, and what extra costs apply, depends on the system.
There is no phone call and no grace period you can count on. The rules are in the code, and they apply when the ratio crosses the line. That is by design: nobody has to decide.
Once it happens, it cannot be undone. That is why the time before it matters, and why a warning at a higher level is useful.
Pulse Lifeline warns you at several levels above the minimum, so there is time to act before this point. Open Pulse Lifeline
Pulse Lifeline is in testing.
Last reviewed: 2026-11-02
#PulseChain #LiquidLoans #Powercity #INCD #PLS #HEX #crypto #iOS
This page gives general information and is not legal, financial or medical advice. [email protected]