Wirex offers users the option to borrow cryptocurrency through Wirex Credit. While this can be a useful tool for those looking to make investments or purchases without selling their digital assets, there are risks involved.
The liquidation of your Wirex Credit line can occur due to two factors. The first is "liquidation by risk," and the second factor is "liquidation by maturity".
Liquidation by risk occurs when the value of digital assets used as collateral drops significantly, and the loan-to-value ratio reaches the liquidation level.
| Collateral Currency | Loan Currency | Liquidation LTV percent |
| AAVE | DAI, NXUSD, USDT, USDC | 65% |
| ADA | DAI, NXUSD, USDT, USDC | 70% |
| ALGO | DAI, NXUSD, USDT, USDC | 70% |
| APE | NXUSD | 40% |
| AVAX | DAI, NXUSD, USDT, USDC | 70% |
| AXS | NXUSD | 40% |
| BTC | DAI, NXUSD, USDT, USDC | 75% |
| COMP | DAI, NXUSD, USDT, USDC | 65% |
| DOGE | NXUSD | 40% |
| DOT | DAI, NXUSD, USDT, USDC | 70% |
| ETH | DAI, NXUSD, USDT, USDC | 75% |
| LINK | DAI, NXUSD, USDT, USDC | 65% |
| LTC | NXUSD | 60% |
| MATIC | DAI, NXUSD, USDT, USDC | 70% |
| MKR | DAI, NXUSD, USDT, USDC | 65% |
| 1INCH | DAI, NXUSD, USDT, USDC | 65% |
| SHIB | NXUSD | 40% |
| SOL | DAI, NXUSD, USDT, USDC | 70% |
| TRX | DAI, NXUSD, USDT, USDC | 70% |
| UNI | DAI, NXUSD, USDT, USDC | 65% |
| WXT | NXUSD | 40% |
| XLM | NXUSD | 60% |
| XRP | NXUSD | 60% |
| YFI | DAI, NXUSD, USDT, USDC | 65% |
Liquidation by maturity happens when the credit is not repaid by the maturity date, leading to liquidation.
In both scenarios, Wirex will retain your collateral amount and the credit line will be closed.
To avoid your Wirex Credit line being liquidated, it is essential to monitor the value of the collateral and your Wirex Credit balance regularly. Additionally, only borrowing what can be affordably repaid is crucial to mitigate the risk of liquidation. By being vigilant and cautious, borrowers can avoid the potential consequences of Wirex Credit line liquidation.