- The bond will be liquidated when its LTV reaches 80%.
LTV = (Total sold unit * Issue Price*100) / Collateral * Collateral TWAP price
For example: You sell 1000 bond units at the issue price = 0.65 BUSD and mortgage 10000 POSI at the rate POSI/BUSD=0.1 LTV = (1000*0.65*100)/(10000*0.1)=65%
- The bond will be liquidated if the issuers do not repay before the maturity date.
- The system will distribute the issuer’s collateral to the holder as a percentage of holding.