Communications
Approved channels All communications in connection with Collateral Management Services are made over email:- General communication: admin-collateralmanagement@anchorage.com
- Notices, urgent items, or operations submissions: collateralmanagement@anchorage.com
Key terminology
Participants
- Pledgor: The borrower or counterparty who provides digital assets as collateral to secure an obligation.
- Secured Party: The institution or lender who provides credit and receives collateral from a Pledgor.
- Collateral Manager: Third-party role fulfilled by Anchorage Digital, combining the Custodian (holding assets) and the collateral manager (monitoring risk).
Transaction components
- Exposure: The outstanding transaction or obligation being secured, such as a loan or repo.
- Collateral Package: The collection of assets pledged by a Pledgor to secure an Exposure. This is the primary object for monitoring.
- Risk Metrics (LTV): The critical metric measuring the ratio of the Exposure to the weighted value of the collateral. The system calculates LTV in near real-time.
States
The current condition of a Collateral Package, determined by its LTV against predefined thresholds.- Healthy: Collateral levels do not require action — LTV falls between the margin return and margin call thresholds.
- Margin Return: Pledgor is eligible for a return of collateral. Action taken upon entering this state: None or Sweep.
- Margin Call: Pledgor is required to top up collateral within the defined cure period to bring the LTV back to the return-to-LTV level. If the cure period expires before a valid top-up is received, action taken: None, Full, Partial, or Sweep.
- Critical: Unless Cure Period Protection is configured and the cure period has not expired, the system immediately takes action: None, Full Liquidation, Partial Liquidation, or Sweep.
Actions
A pre-configured, automated response the system executes when a Collateral Package enters a specific state.- None: Notify both parties.
- Full Liquidation: Full liquidation of collateral and repayment of the loan, reducing both Exposure and collateral value to zero.
- Partial Liquidation: Partial liquidation of collateral and partial repayment of the loan in the amount that brings the LTV back to a healthy state.
- Sweep: Move the entire collateral balance to the Secured Party, reducing both Exposure and collateral value to zero.
Concepts and inputs
- Cure Period: A configurable grace period (in hours) following a margin call, during which a Pledgor can deposit additional collateral to resolve a shortfall before a default action is taken.
- Return-to-LTV: A specific LTV target a Collateral Package must reach to return to a Healthy state after a non-healthy state change. If the price of an asset changes during transit, the quantity sent may be insufficient to cure the state by the time it is received.
- Warning Level: Each LTV threshold can have a warning level configured inside the relevant threshold. Upon breach, Anchorage Digital notifies both parties that the threshold is approaching.
- Operation: A record in the system’s transaction log indicating a change in a collateral balance (e.g.,
TOP_UP) or an Exposure balance (e.g.,PAY_DOWN).
Transaction lifecycle
- Setup & configuration: The Secured Party and Pledgor execute bilateral transaction agreements and provide transaction details and risk parameters to Anchorage Digital, including LTV thresholds, eligible assets, cure periods, and predefined actions.
- Funding: The Pledgor deposits the required collateral into their segregated vault/wallet at the designated Anchorage Digital custodian. The Secured Party funds the loan/Exposure and notifies the Anchorage Digital Collateral Management team.
- Monitoring: The system begins 24/7 automated monitoring, calculating LTV in near real-time.
- Threshold events: If the LTV breaches a configured threshold, the system automatically takes the predefined action — warning notification, margin call, critical liquidation, or margin return.
- Resolution & reporting: If a margin call occurs, the Pledgor submits a
TOP_UPoperation to deposit additional collateral and satisfy the return-to-LTV requirement. If the margin call is not cured or a critical threshold is breached, Anchorage Digital coordinates collateral liquidation via its trading desks. Participants have continuous access to package status via API and dashboard.
Asset pricing for valuation
The Atlas Collateral Management system uses four primary parameters to determine real-time asset valuation within a Collateral Package. These settings define the data pipeline and logic used to calculate the LTV ratio. If the price source becomes unavailable or Anchorage Digital reasonably determines that prices are unreliable due to low or inconsistent trading volumes or other factors, Anchorage Digital may use an alternative source at its reasonable sole discretion. Price Source Provider The upstream data aggregator or oracle used to fetch market data. Amberdata is used for centralized exchange (CEX) market data aggregation; Chainlink is used for decentralized, on-chain price feeds. Price Source The exact venue or data feed queried from the selected provider. Most major exchanges are supported. Back-up Pricing If a primary price source becomes unavailable or diverges from the prevailing market price, the system automatically transitions to a backup feed from a reputable commercial provider. Pricing Type The specific metric extracted from the Price Source’s order book or trade history to establish the asset’s current system value: Bid (highest outstanding buy order), Ask (lowest outstanding sell order), Mid (median between Bid and Ask), Last (price of the most recently matched trade), or Default (used for Chainlink and index data feeds). Asset Weight A numerical parameter that applies a risk discount (haircut) to the calculated market value of an asset before it is aggregated into the total Collateral Package value. Configurable from 0% to 100%. For example, if an asset’s spot price is 800 of value per unit for LTV calculations.Operations management
Operations modify the balances of the Collateral Package and/or the Exposure. Anchorage Digital automatically books operations it is aware of, such as additional collateral deposits and collateral returns. For operations Anchorage Digital may not be aware of — such as a lender sending fiat loan principal to the borrower through traditional rails — the appropriate party must notify Anchorage Digital via API or an authorized email address.Collateral operations
| Operation | Effect | Description |
|---|---|---|
INITIAL_DEPOSIT | Increases collateral balance | First collateral deposit. |
TOP_UP | Increases collateral balance | Adds collateral, often in response to a margin call. |
MARGIN_RETURN | Decreases collateral balance | Excess collateral returned to the Pledgor. |
CLOSE_RETURN | Reduces collateral to zero | Full collateral return at the conclusion of a lending arrangement. |
REHYPE_OUT / REHYPE_IN | Logs rehypothecation | Records when collateral has been rehypothecated out of or returned to its original custody account. |
GAS_FEE | Records on-chain costs | Captures costs for on-chain withdrawal or deposit related to collateral operations. |
Exposure operations
| Operation | Effect | Description |
|---|---|---|
INITIAL_FUNDING | Increases Exposure | Initial loan amount. |
PAY_UP | Increases Exposure | Upsize in the loan. |
PAY_DOWN | Decreases Exposure | Partial loan repayment. |
INTEREST_ACCRUAL | Increases Exposure | Accounts for accrued interest. |
INTEREST_PAYDOWN | Decreases Exposure | Accrued interest payment. |
CLOSE | Decreases Exposure to zero | Full repayment. |
GAS_FEE | Records on-chain costs | Captures costs for on-chain withdrawal or deposit related to Exposure operations. |
Liquidation operations (system-generated)
| Operation | Description |
|---|---|
FULL_LIQUIDATION | Reduces both Exposure and collateral to zero after a complete sale of collateral. |
PARTIAL_LIQUIDATION | Reduces Exposure and collateral by the amount needed to bring the LTV back to a healthy state. |
SWEEP | Transfers the entire collateral balance to the Secured Party, reducing both balances to zero. |
Liquidations monitoring & management
Anchorage Digital provides liquidation capabilities through the Atlas platform, designed to protect the Secured Party’s interests through real-time monitoring and rapid execution. Monitoring and triggering The platform features 24/7 monitoring with real-time price updates for all collateralized assets. Alerts for warnings, margin calls, returns, and critical states are sent in real-time via email and API to both parties and the Anchorage Digital team. Redundant SMS, voice, and email alerts ensure immediate awareness and execution. Order management and liquidity Multiple liquidation orders are handled on a first-in, first-out (FIFO) basis, determined by the exact timestamp the liquidation was triggered. Anchorage Digital aggregates liquidity from major market makers and trades against the best available price unless otherwise agreed.Participant email configuration
Three distinct email lists are configured per participant to direct communications to the appropriate stakeholders.| Email list | Field | Purpose |
|---|---|---|
| Notification | notice_emails | High-priority, time-sensitive alerts and formal notices — including margin calls, cure period expirations, and default notices. |
| Reporting | reporting_emails | Standard periodic reporting, such as daily or monthly collateral valuation summaries. |
| Configuration | configuration_emails | Authorized addresses permitted to provide ad-hoc instructions or submit CSV files to update thresholds, assets, or participant details. |
Email and webhook notifications
The collateral management system sends email notices to the Secured Party and Pledgor for specific events, subject to internal logic that prevents alert fatigue.- Warning levels: Warning LTV thresholds can be configured inside the margin call and critical state thresholds. Warnings are sent at most once every 24 hours.
- State transitions: An email is sent immediately upon transition to Healthy, Margin Return, Margin Call, or Critical state. These emails include current LTV, thresholds, return-to-LTV targets, suggested action amounts, and cure period deadlines.
- Cure period expiry: A notification is sent upon cure period expiry detailing the impending action (Full Liquidation, Partial Liquidation, or Sweep).
- Webhooks: Webhook notifications can be configured for state transitions, providing the same real-time information and metadata as email notifications.