What happens if I don’t repay my Nexo loan?

This information comes directly from Nexo's help center

As long as you maintain a balanced Loan-to-Value ratio or have an “Available Funds from Credit Line” with Nexo, you don’t need to make any repayments. However, if the assets decrease significantly in value, you will receive a warning, stating that you should either deposit more crypto assets to your Nexo account or repay part of your loan to prevent partial automatic loan repayments.

If a borrower does neither of the above, the Nexo blockchain oracle will initiate a partial automatic loan repayment process by selling portions of the deposited crypto assets in order to rebalance the Loan-to-Value ratio.

Sell market orders are made at the market price on leading cryptocurrency exchanges. The funds received back from the exchange will be instantly applied towards your outstanding loan balancе.

The total value of your crypto assets and the minimum amount which will trigger the small automatic loan repayments can be seen at any time below of all your crypto positions in your Nexo account.


Source: What happens if I don’t repay my Nexo loan?
August 23, 2022
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