When collateral falls, LTV increases. If this happens, customers need to supplement additional collateral.
If LTV increase reaches the warning threshold, Matrixport system will inform the customers to supplement collateral. Then, if customers fail to add collateral, the position will be liquidated.
For some products, the position is liquidated 24 hrs after LTV triggers the warning threshold. In other scenarios, the position can be liquidated if collateral prices fall sharply so that LTV triggers the liquidation threshold.