Collateral & LTV Lifecycle

Valuation loop with margin-call cure window and terminal liquidation

Collateral & LTV Lifecycle Valuation loop with margin-call cure window and terminal liquidation 01 / Collateral phases 02 / Breach handling 03 / Terminal exit Pledged · asset assigned · Collateral phases · entry 01 Pledged asset assigned entry Valued · fresh mark · Collateral phases · price 02 Valued fresh mark price Healthy · LTV in range · Collateral phases · steady 03 Healthy LTV in range steady Released · loan repaid · Collateral phases · done 04 Released loan repaid done Margin Call · cure by deadline · Breach handling · timed Margin Call cure by deadline timed Liquidation · forced sell · Terminal exit · terminal Liquidation forced sell terminal LTV breach cured deadline miss Legend active state waiting terminal success failure / exit

Healthy Loop

  • • Pledge, mark, and re-value on a cadence
  • • LTV = outstanding debt over haircut-adjusted value
  • • Release only when the loan is repaid

Margin Call

  • • Breach opens a timed cure obligation
  • • Hysteresis band stops threshold flapping
  • • Cure returns the position to healthy

Liquidation

  • • Deadline miss or hard breach forces a sell
  • • Idempotent: enter the terminal state once
  • • Sell the minimum to restore the cure level

Lifecycle diagram • Built with Archify • Create yours ↗ • Hover to trace • R route • Click to focus • +/− zoom • M radar • [/] views • P play story • T theme • E export