Key Takeaways: CoinRabbit’s Loan Restoration Feature
- In most crypto lending platforms, liquidation marks the end of a loan: the collateral is sold, the position is closed, and you have to start again.
- Loan Restoration feature offers another option. Your collateral is returned to the loan and the loan reopens, allowing you to recover your position after a period of adverse market conditions.
- Loan Restoration was previously available through our support team, but the process required contacting support, waiting for a calculation, and sending the required funds manually. It worked, but it was not as accessible or convenient as we wanted it to be.
- Now, the process is built into the platform. Open the liquidated loan, review the amounts on a single screen, confirm, and the loan is restored.
The market falls, your margin call is triggered, and the collateral is sold to cover the outstanding debt. It is a familiar sequence in crypto lending, and the outcome is usually treated as final. The collateral is gone, the position is closed, and what you believed about the asset no longer changes the outcome.
We never believed this had to be the only outcome. Loan Restoration is our answer to that.
What Loan Restoration Feature Does
Loan Restoration gives you a way to recover a position after liquidation. The collateral is returned to the loan, the loan reopens under its original terms, and your account continues from where the liquidation left off. Instead of losing the position permanently, you can return to the same loan and continue managing it as before.
The goal is simple: give you another path when market conditions have moved against you. If you still believe in the assets you were holding and want to keep the position, you now have a way to bring it back.
Why We Rebuilt It
Restoring a liquidated loan is not new at CoinRabbit. What is new with this release is the way the process is built into the product.
Previously, restoring a loan required working directly with our support team. The process was handled manually, with the restoration terms calculated individually before the loan could be reopened.
We wanted to make that experience more seamless without changing the underlying process. The calculation now happens directly in the platform, with restoration available from the same page where the liquidation occurred. You can review the required amount, confirm the restoration, and return to the position in just a few steps.
The result is a more direct way to access Loan Restoration, with the same process and terms available through the product itself.
Where to Start: Your Liquidated Crypto Loan
Log in and open Loans from the left-hand menu, then select the liquidated loan you want to restore. The loan page shows the collateral, loan amount, and liquidation date, with the Recover button in the top-right corner.
Step 2: Review the Restoration Amounts
Click Recover, and the platform calculates the required amounts for you. Everything you need to review is presented clearly on a single screen.
| Line | What it means |
| Outstanding debt | The amount that clears the liquidated loan |
| Recovery fee | The service fee for the restoration |
| Increase amount | Extra collateral value so the reopened loan starts at a safe distance from a margin call |
| Total required | Everything above, added up |
Next, choose where the funds will come from: your CoinRabbit wallet or an external wallet. The screen also shows the new margin call for the restored loan, so you can review the terms of the position before confirming.
Step 3: Confirm
Two checkboxes appear above the confirmation button. The first acknowledges that the final rate may change while the restoration is being processed. The second confirms your acceptance of the loan recovery terms. Check both boxes, select Confirm, and the process is complete.
Step 4: Restoration in Progress
A status screen confirms that your restoration is being processed. It shows the deposit amount, the wallet it came from, and the margin call at which the loan will reopen.
Step 5: Your Crypto Loan Is Back
The final screen confirms the restoration and provides a direct link to the loan. Open it to view the restored position and its updated terms.
More From Our Research
For more context, start with Liquidation and How to Keep It Under Control. It explains how margin calls work and what you can do to manage your position before liquidation occurs. Our guide to rehypothecation in crypto lending explains why collateral on CoinRabbit remains accounted for and available to be restored, rather than being lent out elsewhere.
What If My Crypto Loan Was Larger Than $20,000?
Loans above $20,000 are restored on the same terms, with a dedicated manager assigned to your case. Contact our Support team, and we will confirm the conditions that apply to your position and complete the restoration.
Final Thoughts
A liquidation can feel like a door closing. Loan Restoration gives you a way to open it again.
Your position can be restored, your collateral is never lent to anyone else, and one bad week does not have to decide what happens to your holdings. If you have a liquidated loan in your account, open it and select Recover. The same option is available across crypto loans for every supported asset.
The information provided in this article is for educational and informational purposes only and should not be construed as financial advice. Cryptocurrency investments carry a high level of risk, and it is essential to conduct thorough research and consult with a qualified financial advisor before making any investment decisions. The views and opinions expressed in this article are those of the author and do not necessarily reflect the official policy or position of any financial institution or organization. We do not take responsibility for the platforms we recommend. Always invest responsibly and consider your individual financial situation before making investment choices.
Last Updated on September 23, 2026 by Dan Marsh
