If the market value of your pledged securities falls significantly during the term of your loan, it can potentially trigger a "maintenance call." In such a scenario, the lender may require you to take specific actions.
To meet a maintenance call, you might need to:
Deposit Additional Collateral or Cash: You can add securities or cash to your collateral account.
Pay Down the Loan: You can also choose to pay down a portion of the outstanding debt to reduce the amount of leverage you’ve taken. You can choose to sell some of the securities in your collateral account to raise the necessary cash to make a payment.
You must address a maintenance call promptly, within a set time frame that will be communicated to you by the Measured team. Failing to meet the maintenance call requirements could result in the lender taking action to mitigate their risk, which might involve selling securities in your pledged account and resulting in a taxable event and/or trading fees.