The effective loan-to-value (LTV) ratio changes according to real-time market movements. If market prices move such that the effective LTV at the time of the loan drawdown deviates significantly from the initial LTV, you will see a slippage notice upon loan confirmation. Slippage notices serve as a protective measure to avoid underestimation or overestimation of the required Collateral deposit.

If the effective LTV has deviated 5% or more from the intended LTV upon loan confirmation, the request to drawdown the loan will be rejected and you will receive a slippage notice (example below). You can tap Retry to borrow with the latest composite index price.

On the other hand, if the effective LTV deviation is within 5% of the intended LTV upon loan confirmation, you will still be able to draw down the loan based on the terms indicated in the loan confirmation. Once the loan is drawn down, it becomes active and the LTV will be monitored and adjusted under our customary practices discussed here.

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