Maintaining LTV. (a) In order to avoid Event of LTV Default, it is on the Borrower to ensure that the LTV Ratio is at all times equal or less than Liquidation LTV.
(b) To reduce the LTV Ratio, Borrower may, from time to time, transfer and deposit additional Collateral into the Escrow environment subject to and following the instructions reasonably given by or through the Platform, including, but not limited to, using the dedicated software tool (app) provided by the Platform.
(c) For the avoidance of doubt:
(i) in the calculation formula of LTV Xxxxx, the Amount due parameter is always a fixed number, irrespective of eventual partial repayment;
(ii) any additional Bitcoin or any portion thereof shall be deemed as Collateral under this Agreement (and thus shall, without limitation, enter into the calculation of LTV Ratio) only if and upon the moment when, with regards to this additional collateral, all the conditions under Xxxxxx XX.(c) of the Collateral escrow rules are met;
(iii) failure to ensure that LTV Xxxxx would not exceed Liquidation LTV leads to legal effects stipulated in this Agreement which, as acknowledged and agreed by Parties, represent the sole and adequate remedy (thus excluding, most notably, liability for damages).
(x) Xxxxxxxx acknowledges and agrees that:
(i) occurrence of LTV Ratio exceeding Liquidation LTV:
(A) before the full repayment of Amount due is considered an Event of default [Clause 5.1] triggering repayment by Collateral [Clause 5.2];
(B) may, according to Collateral escrow rules, in some cases lead to the transfer of the Collateral from Escrow to Liquidation address (as defined in the Collateral escrow rules) even after the full repayment of Amount due;
(ii) Event of LTV Default occurs in the very moment TV Ratio exceeds Liquidation LTV;
(iii) Event of LTV Default may not be cured (i.e. once LTV Ratio exceeds Liquidation LTV, any subsequent lowering of LTV Ratio by additional Collateral or rise of Market BTC price shall, for the purposes of this Agreement, have no significance and be completely disregarded).
(e) Lender shall have no obligation whatsoever (e.g. to remind, give notice or otherwise ask the Borrower to avoid impending Event of LTV Default) with respect to Clause 4.6(a) hereof.
