What happens if I default on my loan?Last Updated: March 31, 2019
In the case of a default, your collateral is used to repay the loan and the accrued interest. Any remaining collateral after repayment is transferred to your trading account.
Example: For a $100 ETH loan backed by $150 OMG collateral at 2% premium — in case of a default, $102 worth of OMG would be used to repay the loan and the remaining OMG worth $48 would be transferred to your trading account. Price fluctuations would change these calculations and are handled by the contract.