to credit line to free up my ETH..now unable to move any of them to savings wallet. What could possibly go wrong?
You can only withdraw any excess collateral you might have. If you can not withdraw it means you don’t have any excess collateral and your LTV is higher than what your collateral assets allow.
But how is that possible? I just added a considerable amount of ADA - about 10% of my outstanding loan considering ADA has 30% LTV
As a reminder ETH has 50% LTV and ADA has 30% LTV. So swapping out ETH collateral with ADA will not work very well.
True. Realised that and hence tried to move ADA back to savings. And it won't let me even do that
This is because your collateral assets has gone down in price since you opened the loan, meaning your LTV is higher than what you are allowed to borrow. For example if your only collateral is ETH then you can borrow up to 50% of that, but if ETH falls and makes you LTV 60% then even adding more ETH (or ADA) to make the LTV go back to 50% will not allow you to withdraw collateral.
I thought Nexo does the moving automatically whenever the LTV falls..so when I move something into creditline shouldnt it always be excess collateral?
No. They only move collateral if it is needed to prevent liquidation (if you have that option enabled in settings) or to open a new loan.
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