Where should I transfer BTC collateral?
After your loan application is approved, the cryptocurrency wallet address will be displayed in your user profile. Please follow further instructions in your user profile.
I have sent collateral to the wrong address. What should I do?
We would kindly ask you to double check all addresses before making any payments, as BTC transfers cannot be canceled.
Will I still own my assets after transferring them to your address?
From the legal perspective you will still be treated as the owner of the collateral even though the collateral will be kept in CryptoLoan’s BTC wallet. The legal consequences of crypto currency collateral are the same as for possessory pledge.
What happens if the market value of my collateral changes?
Due to BCT/EUR exchange rate fluctuations, the value of transferred loan may change over time. If the collateral value reaches 60% loan-to-value (LTV) threshold, CryptoLoan will notify the borrower, but if its value reaches 90% loan-to-value (LTV) threshold, CryptoLoan is entitled to sell the full amount of your collateral to cover the loan amount and any outstanding principal. You will always be able to monitor the value of your collateral in your user profile. If the collateral is sold for higher amount than borrower outstanding liabilities towards the lender, the difference will be sent to the Borrower’s personal account.
How do I meet a margin call?
A margin call can be met by making a payment to reduce the outstanding loan balance.
How will I be notified of a margin call?
You will be notified via notification in your user profile, via email and text message.
In what other cases it may be necessary to sell the collateral?
Transferred collateral may be sold in such cases:
- If the BCT/EUR exchange rate is affected by fluctuations and BTC value drops reaching 90% loan-to-value (LTV) threshold,
- If the collateral value drops reaching 90% loan-to-value (LTV) threshold due to delayed payments and outstanding liabilities.
For what purposes will CryptoLoan use my collateral?
The collateral will be used to secure the repayment of granted loan.
Where will CryptoLoan store my collateral during the term of the loan?
For storage purposes CryptoLoan uses a combination of techniques to ensure that your funds are safely and securely stored.