Loan management for digital-asset lenders

In a derivatives book both legs move. In a lending book the principal is fixed and accrues while the collateral floats — which is exactly why a lending book deteriorates on a flat day, and why accrued interest is a column here rather than a footnote. Risk also runs the other way: LTV is debt over collateral, so lower is safer, the inverse of coverage everywhere else on the platform. Both figures are computed directly rather than derived from each other, because inverting one loses the haircut treatment.

• Fixed principal with continuous accrual, shown beside floating collateral value
• LTV against market value, and against value after haircuts — the gap is the haircut
• Maturity is real: an open-ended facility reads "open", never as a date
• Initial, call and liquidation thresholds per loan, validated to be in order

Pledged loan collateral is valued at the same marks and the same tiered haircut ladders as margin collateral, through one shared implementation. An LTV on the loan book and a figure on the collateral pages cannot disagree — which matters, because that is precisely the number a borrower disputes.

Loans are bucketed from a week out to beyond six months, with overdue and open-ended facilities reported outside the ladder — an overdue loan is a failed one rather than a short-dated one, and an open-ended facility is callable but unscheduled rather than long-dated. The peak refinancing window is scanned day by day, because a bucketed view hides a spike that straddles a boundary: thirty million on day 29 and thirty million on day 31 looks like two moderate buckets and is one very bad month.

Interest accrues continuously, so a payment crystallises everything owed to that instant before it settles anything — settling without crystallising would silently write off the interest earned since the last payment. Interest is paid before principal, the near-universal facility order. Neither can be overpaid, because a payment above the obligation is a typo far more often than a real overpayment, and a negative balance is permanent once written.

Breach detection is edge-triggered per loan and per level, so a slide from call into liquidation raises again — those are different instructions to a desk, not a repeat of the same one. The alert carries the top-up amount: "add $385,722" is actionable where "LTV is 71.6%" is not. An unsecured loan gets no LTV at all rather than a zero, and sorts to the top of the work list, because no LTV is not no risk.