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2021-04-27 Collateral Management Enhancements at the Portfolio Level

Loan Collateral Management Updates

We've launched 2 new features today relating to loan collateral management:

  • Collateral Release Configuration: Users now have the ability to dictate whether or not a Loan Portfolio will automatically trigger a release of collateral in the event of a Collateral Release Percentage breach.
  • Manual Update of Collateral Quantity at the Portfolio Level: Users can now manually change the amount of collateral held by the lender within a portfolio.

How they Work

Collateral Release Configuration

  • On the Loan Portfolio page ( → Loans → Loan Portfolios), go to Edit and a pop-up will appear:


  • There is a new configuration called "Ignore Collateral Releases?"
  • Here are the meanings of each configuration option:
    • Yes: The system will never automatically trigger a collateral release.
    • No: The system will always trigger a collateral release if conditions are met.
  • Click OK to save your configurations; the saved setting is active instantly.

Manual Release of Collateral at the portfolio level

  • Prior to this release, users could only manually change the collateral quantity held by the lender at the loan level, by altering the Collateral Quantity in the highlighted text box ( → Loans → click on Loan ID URL → Edit Loan Terms):



  • Now, users can perform a similar action at the portfolio level, by altering the Collateral Quantity in the highlighted text box ( → Loan Portfolio → click on Loan Portfolio ID URL → Edit):


  • Once that number is changed to ie, 1,705, 10 ETH will be sent from the lender to the borrower.
  • These 10 ETH will be dispersed on a Pro-Rata Basis amongst all the loans within the portfolio.


Pro-Rata means that loans are weighted differently based on the current loan value. So using a more simplified example, if you had 2 loans:

Loan Current Loan Value Pro-Rata Value (or "weight")
1 $100 (100 / 250) 40%
2 $150 (150 / 250) 60%
Total $250 100%


And the user made a change in collateral that was (-10) ETH compared to its previous value, (4) ETH would be taken from Loan 1 and moved to the borrower and (6) ETH would be taken from Loan 2.