Kraken holds the instant liquidation switch on a crypto firm’s 479 Bitcoin if price drops to $45,094

USBC increased a Bitcoin-backed loan to $18 million in late July. That created a price-dependent risk: the company could have to add collateral or repay debt within 24 hours. Using the filing’s July 31 inputs, the disclosed 130% call ratio equates to an illustrative Bitcoin price near $48,852.The company is developing a tokenized-deposit offering. In its Aug. 7 Form 10-Q, it said a fourth draw of $3 million on July 28 raised the balance under its Payward Interactive facility from $15 million. USBC had pledged 479 Bitcoin worth about $30.1 million as of July 31. The filing reported a 59.8% loan-to-value ratio.Payward Interactive, a Kraken-affiliated entity, is the lender. Affiliate Payward Financial, branded Kraken Financial, holds the Bitcoin as custodian for the lender.The exposure has grown since June, when USBC disclosed a $15 million balance secured by 336 Bitcoin. The August filing therefore updates both sides of the risk: more debt and more encumbered Bitcoin.The call and liquidation linesUSBC’s facility requires an initial margin ratio of 150%. At or below the disclosed 130% call ratio, Payward Interactive may issue a collateral-call notice. The notice can require additional...