How Does Crypto Lending Work?
Crypto Lending offers cash loans to Canadian cryptocurrency investors who provide Bitcoin as collateral.
* At launch, we will only be accepting bitcoin as collateral. We have plans to support additional cryptocurrencies in the future.
Bitcoin Collateralized Loans
We offer flexible loan terms. Apply for a personal loan today and keep your cryptocurrency for future gains.
Benefits of Crypto-Backed Loans
Crypto Lending gives you the liquidity you want from your cryptoassets
Here is an Example
So you want to unlock your digital wealth? Assuming the price of Bitcoin is $10,000 CAD and you want to borrow $5,000, here is how the loan would look.
Pricing is illustrative and does not constitute an offer. Other fees may apply.
Tell Me More About LTV & Margin Calls
A loan's LTV (loan-to-value) ratio determines the amount of crypto collateral you need to post in order to obtain a loan. In general, collateralized loans require customers to give the lender an asset, in our case bitcoin (BTC). We hold your asset until your loan is paid off, then it's returned to you.
Throughout the life of the loan, our platform continuously monitors the value of your collateral. A "Margin Call" occurs when the collateral value falls below the set LTV ratio based on the outstanding principal of the loan.
We recommend a low LTV not just for the lower interest rates, but to ensure that we would never be required to execute a Margin Call if the value of your crypto falls dramatically.
FREQUENTLY ASKED QUESTIONS
Yes. The cryptocurrency that you use as collateral still belongs to you. We simply hold your collateral in our secure cold storage vault during the life of the loan. When you complete your loan agreement, your collateral is returned to you.
If the value of your cryptocurrency rises, you don't have to do anything. Once your outstanding loan is repaid in full, you will receive your collateral back and you retain its market value.
If the value of your cryptocurrency falls on the other hand and breaches the agreed upon loan-to-value (LTV) threshold, a "margin call" will be triggered. You will be given an opportunity to either; add additional collateral, or make an additional principal payment, bringing your LTV below set threshold.
Crypto Lending uses 100% cold storage ensuring that your crypto assets remain secure. Your private keys will never be stored on our website.
No, we do not perform a credit check when you apply for a loan through Crypto Lending. We do not report loans to any third parties.
Yes. You can pay your outstanding balance in full at any time with no prepayment penalties.