Introducing Unlock Collateral: Flexibility for Your Crypto Assets

We're excited to share a feature that gives you more control over your collateral: Unlock Collateral.

When your Loan-to-Value (LTV) ratio drops low enough, you can now unlock excess collateral and move it back to your available balance.

This feature has been especially useful during recent market movements, when many clients added extra collateral or paid down their loans. Now you can reclaim that collateral directly through your dashboard.

How It Works

Eligibility Requirements

You can unlock collateral when your LTV ratio is at least 10% below your loan's maximum initial LTV:

• BTC, ETH, SOL: Unlock available at 40% LTV or lower (max initial LTV at 50%)

• XRP, LTC: Unlock available at 30% LTV or lower (max at 40%)

• XLM, ADA, HBAR: Unlock available at 23% LTV or lower (max at 33%)

• DOGE: Unlock available at 15% LTV or lower (max at 25%)

These are the same thresholds as our Upsize feature.

How to Unlock Your Collateral

The process is simple and takes just a few steps:

Step 1: Check Your Eligibility

First, log in to your Lantern dashboard and navigate to the loan you want to manage. Look for the current LTV ratio—if it's low enough based on your asset type, the "Unlock Collateral" button will be active.

Hover over the Unlock Collateral button to see your specific asset’s eligibility threshold.

Step 2: Choose Your Unlock Amount

Click "Unlock Collateral" and enter the amount you want to unlock. You can use the "Max" button to unlock the maximum available amount while keeping your LTV at the safe threshold.

You'll see a real-time preview of:

• Your new collateral amount

• Your new LTV ratio

• Updated risk thresholds (margin call and liquidation levels)

Step 3: Review and Submit

Review your loan summary carefully:

• Original vs. new collateral amounts

• Your new LTV percentage

• Updated interest and risk thresholds

Once everything looks good, click "Submit" to complete the unlock.

Step 4: Access Your Funds

After submitting, you'll see a confirmation message: "Collateral unlocked successfully. You should now see your collateral in your available balance."

Your unlocked collateral will appear in your available balance within your Lantern account.

Note: Available balance updates immediately

Step 5: Withdraw to Your Wallet (Optional)

If you want to move the funds to an external wallet:

1. Click "Withdraw" in the top navigation of your Loans dashboard page

2. Select the asset you unlocked

3. Enter your destination wallet address

4. Specify the amount to withdraw

5. Submit your withdrawal request

Please triple-check your wallet address before submitting.

Why Use Unlock Collateral?

• Capital efficiency: Access liquidity when your collateral appreciates

• Start a new loan: The available balance can be used as collateral towards another loan too.

• Greater flexibility: Adapt to changing market conditions without contacting support

• Self-service convenience: Manage your collateral on your schedule, 24/7

• Risk management: Adjust your position as markets evolve

Questions?

If you have any questions about unlocking collateral or need assistance, our team is here to help:

• Email: [email protected]

• Text: (415) 365-0100

Ready to unlock your collateral? Log in to your dashboard and check if your loans qualify.

This feature is available for all active loans. Your loan must meet the minimum LTV requirements to unlock collateral. All withdrawals are subject to our standard security and verification procedures.