If your collateral has increased, such that your loan LTV is below the margin recall threshold, you can upsize your loan to bring the LTV back to the maximum allowed LTV amount.
For instance, if you have a Bitcoin Loan below 50% LTV, you can upsize your loan amount back to 60% by drawing additional cash.
How does my outstanding interest get handled?
If you have not paid the monthly payment yet or if you have paid less than the pro-rated amount due, then Arch can deduct the remaining monthly payment amount due from the loan disbursement.
If you have paid more than the pro-rated amount, the excess amount will be credited against your first statement on the upsized loan.
Note that once you upsize your loan, you will now have statements due on that date every month going forward. For example, if your initial loan had a statement due on the 20th of every month and you decide to upsize on the 15th, then you will now have your payments due on the 15th of every month thereafter.
An example is as follows:
You’ve taken out an interest-only $100,000 loan on October 31st, 2024 at a 15% interest rate. As a result, on the last day of every month, you owe $1,250. The price of BTC goes up and you decide to upsize on Nov 15th, 2024.
Your monthly payment of $1,250 is due on Nov 30th, but instead of paying the full amount you will only need to pay half of it. If you have not paid your interest, it will be deducted from your upsized disbursement. If you have already paid the full $1,250, then the extra $625 will be credited to your first statement on the loan upsize.
Given the upsize has occurred on Nov 15th, your monthly interest payment on the upsized loan amount will be due on the 15th of every month going forward.
How do I upsize my loan?
Upsizing your loan takes just a few clicks. Simply navigate to your dashboard and select "start upsize loan application":
You will then be able to configure the upsize similarly to how you configured your original loan. The "What is your desired new loan amount" will automatically populate with the largest possible new loan size. The incremental loan amount will be displayed on the right-hand side.
