Loans are issued at a Loan to Value (LTV) ratio of 50%. If the collateral value falls to LTV 65% or stays above 50% for more than three days, a margin call is made. The customer is requested to provide additional collateral to bring the loan back to an LTV of 50%. When the LTV reaches 75% or stays above 65% for more than three days, the customer is requested to add liquidity to bring the LTV back down, and they are warned that if the LTV reaches 85%, they will be liquidated. If the LTV reaches 85%, a liquidation event happens where the collateral is converted to USD stable coins equivalent to fiat loan plus 5%. The balance of the collateral is transferred back to the customer, and the smart contract is completed. The customers keep the fiat they borrowed.