The 90/85 Standard shifts the mechanics of loan recovery. When a borrower hits an 80% Loan-to-Value (LTV) ratio, APX initiates a notification process without mandatory cure periods. If the LTV reaches the 90% threshold, the firm triggers a partial liquidation, stopping immediately once the loan-to-value ratio is restored to 85%. By capping the sale of collateral at this level and removing liquidation fees, the company seeks to turn a protective measure into a less punitive experience for the borrower.
APX Lending Debuts 90/85 Standard to Minimize Crypto Collateral Loss
Toronto-based APX Lending is reshaping digital-asset credit by introducing the 90/85 Standard, a liquidation model that eliminates fees and restricts collateral sales during market downturns. The policy aims to protect Bitcoin holders from the aggressive sell-offs common in traditional crypto-backed lending, allowing borrowers to retain more of their underlying assets.
Founder and CEO Andrei Poliakov argues that current industry models often prioritize lender profits over asset retention. In a standard liquidation scenario, a borrower with $100,000 in collateral and a $90,000 loan might lose nearly their entire position. Under the new APX framework, that same borrower would retain $66,667 in collateral, leaving a balance of $56,667. This structure reflects a broader strategy at the 2023-founded firm to position itself as a regulated alternative in the digital-asset space, ensuring that liquidation events do not become revenue drivers.
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