How to protect your crypto-backed loan during global uncertainty
We at SALT want to take a moment to address the market volatility and global uncertainty stemming from COVID-19. We understand this level of uncertainty can be stressful and want to reaffirm that we’re taking the necessary steps to keep our employees and your assets safe.
Even as SALT employees have been asked to work from home for the foreseeable future, our support team will remain available 24/7. We’ve implemented our contingency plan for instances like this to ensure there will be no lapses in our customer service.
While we cannot predict what the market will do, we want to ensure you’re aware of the actions you can take NOW to protect your loan:
- Deposit additional collateral — by depositing additional collateral now, you can lower your loan-to-value ratio (LTV) so that your loan and your collateral are better positioned to withstand a large dip in the market.
- Add a stable cryptoasset — by adding stable assets like USDC, TUSD, or PAX or by adding gold-backed PAXG as collateral, you can offset market volatility and make your loan less susceptible to downward trends.
- Make an additional payment — by paying down an additional amount on your loan, you can bring your LTV down to help reduce risk of liquidation.
- Turn on notifications — if you have not already done so, we strongly encourage you to log into your account, go to your notification settings and turn on all notifications. Then log into your account via our mobile app to activate push notifications. This will help you stay up to date on the health of your loan in real time so that you can take immediate action as needed.
Taking any of the above steps will help protect your loan against market volatility. However, in the event of a severe market downturn like the one that took place on March 12, 2020, we want you to know your options for quickly restoring the health of your loan. Our blog post on what to expect when your collateral is on the decline offers additional details on how to manage your loan during a market downturn.*
Should you run into any issues please contact [email protected] or [email protected] and one of our team members will assist you. We’re here for you and happy to help.
And remember, in the midst of this global pandemic, your own health and safety should be your top priority.
*This content is meant to educate and inform but should not be taken as financial or investment advice. Trading and investing in cryptocurrencies (also called digital or virtual currencies, cryptoassets, altcoins and so on) involves substantial risk of loss and is not suitable for every investor.