Bitcoin Margin Call Calculator

A margin call is a notification from your lending platform that your loan-to-value (LTV) ratio has risen to a warning level. It's not liquidation—yet—but it's a demand to take action. **What triggers it**: Typically when LTV reaches 60-75%, depending on your platform's thresholds. **What it means**: Your collateral value has dropped relative to your loan. You're approaching liquidation territory. **What's required**: Usually you must either add more collateral or pay down part of your loan within a specified timeframe (24-72 hours typically). **What happens if you ignore it**: If you don't act and your LTV continues rising to the liquidation threshold, your collateral is automatically sold. Think of a margin call as your smoke alarm—it gives you time to prevent a fire, but only if you respond.

The margin call price is the Bitcoin price that pushes your LTV to the margin call threshold. **Formula**: Margin Call Price = Loan Amount ÷ (BTC Collateral × Margin Call LTV) **Example**: - Loan: $50,000 - Collateral: 1 BTC - Margin Call LTV: 70% - Margin Call Price: $50,000 ÷ (1 × 0.70) = $71,429 In this example, if Bitcoin drops to $71,429, you'd receive a margin call requiring action. **Compare to liquidation**: - Same loan with 80% liquidation LTV - Liquidation Price: $50,000 ÷ (1 × 0.80) = $62,500 You'd have a $71,429 to $62,500 range (~$9,000 or 12%) to take action between margin call and liquidation.

Understanding the difference between margin call and liquidation can save your Bitcoin: **Margin Call (Warning Stage)** - LTV threshold: Typically 60-75% - What happens: You receive a notification - Action required: Add collateral or pay down loan - Timeframe: Usually 24-72 hours to respond - Your Bitcoin: Still yours, but at risk **Liquidation (Point of No Return)** - LTV threshold: Typically 75-90% - What happens: Automatic collateral sale - Action required: None possible—it's automatic - Timeframe: Immediate when threshold is crossed - Your Bitcoin: Sold, often at worst possible price **The window between them is crucial**. A platform with margin call at 70% and liquidation at 80% gives you 10% price movement to take action. Use this time wisely.

The best margin call is one you never receive. Here's how to stay safe: **Start conservative**: Begin with 35-45% LTV instead of the maximum. The lower your starting point, the more Bitcoin must fall before triggering margin call. **Know your numbers**: Use our calculator to know exactly at what price you'll receive a margin call. Don't guess—know. **Set early alerts**: Don't wait for the platform's margin call at 70%. Set personal alerts at 50%, 55%, and 60% LTV using Margin Watch. **Keep reserves ready**: Have cash or additional Bitcoin available that you could deposit quickly if needed. **Monitor the market**: Major news events, ETF decisions, regulatory announcements—these can trigger rapid price movements. Be aware and prepared. **Have a written plan**: Decide now what you'll do at each LTV level. "At 55% LTV, I'll add 0.1 BTC. At 60%, I'll pay down $10,000." Remove emotion from the equation.

If you receive a margin call, don't panic—but do act quickly: **Step 1: Verify the situation** Check current BTC price and confirm your LTV. Sometimes alerts have delays—your situation may be better (or worse) than the notification suggests. **Step 2: Assess your options** - Can you add more Bitcoin collateral? - Can you make a partial loan payment? - Do you have stablecoins to convert and pay? **Step 3: Calculate what's needed** Our calculator shows exactly how much collateral to add OR how much to pay down to reach your target LTV. **Step 4: Act within the timeframe** Most platforms give 24-72 hours. Don't wait until the last minute—Bitcoin could drop further. **Step 5: Update your strategy** After resolving the margin call, reassess. Should you maintain a more conservative position going forward? **Remember**: A margin call isn't failure—it's the system working as designed to give you a chance to protect your collateral.