It’s simple! You post crypto (BTC, ETH, LTC or PAXG) as collateral, and you can borrow USD or stablecoins (USDC, GUSD, PAX) against it. It is a great way to unlock capital without having to sell your assets and incur a taxable event. The amount of USD you can borrow depends on the amount of collateral you post against the loan, and which LTV (Loan to Value Ratio) you choose. Our loans are all structured as 12 month, interest only loans and incur an origination fee of 2% due when the loan is paid back in full.
Please see the example below for a US/Domestic who is client taking a $10,000 loan (Interest-only loans require you to pay just the interest on the loan balance for your monthly payments. However, clients are able to pay down part of their loan principal at any time. This will also reduce the interest you will pay in future months!)
- 50% LTV @ 9.75% Interest rate - requires ~$20k in crypto as collateral
- 35% LTV @ 7.9% Interest rate - requires ~$29k in crypto as collateral
- 20% LTV* @ 4.5% Interest rate - requires ~$50k in crypto as collateral
- 50% LTV @ 12.5% Interest rate - requires ~$20k in crypto as collateral
- 35% LTV @ 10.44% Interest rate - requires ~$29k in crypto as collateral
- 20% LTV* @ 6.73% Interest rate - requires ~$50k in crypto as collateral
*20% LTV option only applicable for BTC-backed loans with max funding of $20,000