Refinancing allows borrowers to extend a fixed-rate loan into a new term without repaying and reopening the position. Refinancing is useful for maintaining exposure without interruption and locking in a new fixed rate before the current term expires.

Loopscale supports both automatic and manual refinancing:

  • Auto-refinance: Enabled by default and managed by Loopscale’s auto-refinance engine
  • Manual refinance: Optional and helpful for locking in specific rates or terms

​
Auto-Refinance

Loopscale’s auto-refinance engine ensures that most loans continue without disruption. As your loan approaches maturity, the engine:

  • Searches for compatible lending offers in the same market
  • If found, rolls the loan into a new 1-day fixed-rate term
  • Automatically repays the original lender and opens the new loan using the same collateral

This process can repeat indefinitely, as long as your loan remains healthy and interest accrual doesn’t push the position into liquidation.

​
What If No Match Is Found?

Healthy loans with strong collateralization are highly unlikely to default due to failed refinancing. The auto-refinance engine is designed to prioritize continuity and in nearly all cases, healthy loans will successfully auto-refinance. That said, borrowers should still monitor collateral value. Refinancing does not prevent liquidation due to price-based liquidations.

If no matching lender is available when your loan expires:

  • A 48-hour grace period begins
  • During this period, your loan accrues interest at the same rate
  • You can manually repay or manually refinance to avoid liquidation

If the loan remains unpaid after the grace period, your position may be partially liquidated to cover the outstanding debt. Learn about how liquidations work here

​
Manual Refinance

You can refinance your loan manually at any time, even before it expires. Manual refinancing is useful when you want to lock in a longer or more favorable term and prefer to control the rate and timing directly

To manually refinance:

  1. Visit the Portfolio page
  2. Select your active loan
  3. Choose Refinance
  4. Review available lending offers and confirm the new term

The manual refinance pays off your existing loan and immediately opens a new one using the same collateral.