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Kraken-linked lender can instantly liquidate 479 pledged Bitcoin
A Bitcoin price at or below a disclosed 120% coverage level would let the lender liquidate immediately without a collateral call or notice, with a 1% liquidation fee on sale proceeds.
CryptoSlate reports that a Kraken-affiliated lender, Payward Interactive, holds a Bitcoin-secured exposure to USBC that includes 479 pledged Bitcoin, tied to a price-dependent collateral framework disclosed in the company’s Aug. 7 Form 10-Q.
According to the filing, USBC increased its Payward Interactive-backed loan to $18 million in late July, and the facility terms require an initial 150% margin ratio. The document says that at a disclosed 130% call ratio, the lender may issue a collateral-call notice, which can require additional collateral or partial repayment within 24 hours, followed by bringing the ratio back to 150%.
The same filing also outlines an immediate liquidation trigger at a 120% coverage level, using illustrative inputs from July 31, and says Payward Interactive has sole discretion to liquidate right away without issuing a call if that threshold is met. The reported calculations imply liquidation ability around $45,093.95 per Bitcoin and state the direct remedy carries a fee equal to 1% of collateral-sale proceeds.
CryptoSlate adds that USBC reported no collateral call, mandatory repayment, or liquidation had occurred as of July 31, and that the exposure has increased since June, when USBC disclosed a $15 million balance secured by 336 Bitcoin. The filing also notes that the applicable spot reference used in the master loan agreement means the price level is not a permanent contractual trigger and can change with spot and other inputs.
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