Abstract: A multisig digital asset wallet stores collateral for a loan between a borrower and a lender. The borrower and lender agree to loan terms including collateralization requirements. Over the course of the loan repayment period, a Loan-to-Value (LTV) ratio between the digital asset collateral and the loan principal balance will change due to fluctuations in the market exchange value of the digital asset and a declining loan principal balance due to regular loan repayments by the borrower. If the LTV exceeds the collateral requirements by an overage amount, then the borrower may sign a transaction and request signatures from other participants to withdraw funds from the multisig collateral wallet. If the LTV fails to satisfy the collateral requirements, participants may spend funds from the multisig collateral wallet to improve the LTV, catch up after a missed payment by the borrower, or pay down the loan principal.

Abstract: A blockchain oracle manages loans collateralized by a digital asset. Lenders and borrowers agree to loan terms that include digital asset collateral held in a multisig wallet for which various parties hold private keys. If collateral requirements are not met by the loan such as when a Loan-to-Value ratio satisfies a margin call condition, the oracle may transmit warnings to loan participants and may initiate liquidation of the digital asset collateral to remove the margin call condition. The oracle may exist on a blockchain initialized with loan agreement information. The oracle may determine whether margin call and liquidation conditions are satisfied by updating an internal state by obtaining and/or receiving information regarding the status of the loan, the digital asset collateral, and liquidation locations on-chain, by receiving status transactions, and/or by requesting the information directly.