If the price of your collateral asset has increased in value and is higher than when you first took out your loan, then you may be eligible to refinance your loan to access more USD. The amount of crypto you have posted with BlockFi will stay the same, and you would be able to receive more USD for the value of the assets posted.
In most cases you will be eligible to have a portion of your collateral returned.
- If you took out a $10,000 USD at 50% LTV loan when the price of BTC was $6,000 and the price of BTC doubled to $12,000, you would be able to double the size of your loan to $20,000. In this instance, you could submit a new loan application for $20,000, and the additional $10,000 in proceeds would be funded directly to you. If there is any excess collateral left over then that can be returned to your Wallet, or posted as collateral as additional loan security.
Note: If your loan is not maturing within 30 days then you may ONLY refinance your loan when the LTV decreases by 15% or more from your originating LTV (e.g., if you originated your loan at 50% LTV, you can refinance when your LTV drops to 35% or below). Additionally, the net new funding amount MUST be >$10K in order to be eligible to refinance.
If you would like to inquire about refinancing your loan please submit a support ticket HERE.
To read about the potential benefits of refinancing your loan please click HERE. For more information about refinances eligibility please click HERE.