Understanding Offer Terms

I Want To (Offer Type)

Select whether you want to Borrow money or Invest/Lend money. This determines your role in the transaction:

• •Borrow: You are seeking a loan and will provide Bitcoin as collateral
• •Invest: You are providing capital to earn interest on loans

Loan Type (Repayment Type)

Choose between two repayment structures:

• •Monthly Coupons: Pay interest monthly, with principal repaid at the end of the loan term
• •EMI (Equal Monthly Installments): Fixed monthly payments that include both principal and interest

Loan Amount

The total amount of money you want to borrow or lend, denominated in your local currency (e.g., INR, USD). This is the principal amount that will be used to calculate interest and repayment schedules.

Collateral Amount

The amount of Bitcoin (BTC) required as collateral for the loan. This is automatically calculated based on the loan amount, current Bitcoin price, and LTV ratio. The collateral amount is displayed with up to 8 decimal places for precision. This Bitcoin is held as security and may be liquidated if the loan-to-value ratio exceeds certain thresholds.

APR (Annual Percentage Rate)

The yearly interest rate for the loan, expressed as a percentage. This is the annualized cost of borrowing, including interest charges. The APR can be set between 0% and 20%, adjustable in increments of 0.25%. The APR directly affects your monthly interest rate (calculated as APR ÷ 12) and total interest amount over the loan term.

Tenure (Loan Duration)

The duration of the loan in months. You can select a tenure between 1 and 60 months (1 month to 5 years). This determines how long you have to repay the loan and affects the total interest amount. Longer tenures typically result in higher total interest payments but lower monthly payments.

LTV (Loan-to-Value)

The Loan-to-Value ratio represents the percentage of the loan amount relative to the collateral value. It can be set between 20% and 60%, rounded to the nearest 5% increment (e.g., 20%, 25%, 30%, etc.). A lower LTV provides more security for lenders, while a higher LTV allows borrowers to access more funds. The LTV is used to calculate the required collateral amount.

First Notice LTV (%)

The LTV threshold (0-100%) at which the first notification is sent to the borrower. When the actual LTV reaches this level due to Bitcoin price fluctuations, the borrower receives an alert to add more collateral or reduce the loan amount. This is typically set below the liquidation threshold to provide early warning.

Second Notice LTV (%)

The LTV threshold (0-100%) at which a second, more urgent warning notification is sent. This serves as an escalated alert when the collateral value continues to drop and the borrower has not yet responded to the first notice. The second notice typically indicates that liquidation is approaching.

Final Notice LTV (%)

The LTV threshold (0-100%) at which the final warning notification is sent before liquidation is initiated. This is the last opportunity for the borrower to add collateral or repay the loan before automatic liquidation procedures begin. The final notice LTV is typically set just below the liquidation threshold.

Collateral Notification (minutes)

The time in minutes before sending a notification when the collateral value drops below the specified LTV thresholds. This gives borrowers advance warning to take corrective action before liquidation procedures begin.

Liquidation Response Time (minutes)

The time in minutes the borrower has to respond after receiving a liquidation warning. During this period, the borrower can add collateral, partially repay the loan, or take other actions to bring the LTV back to acceptable levels. If no action is taken within this timeframe, liquidation may be initiated.

Force Liquidation (minutes)

The time in minutes after which liquidation is automatically executed if the borrower has not taken corrective action. Once this time expires, the collateral (Bitcoin) is automatically liquidated to repay the loan, protecting the lender from further losses.

Bitcoin Public Address

Your Bitcoin address where loan funds will be received. This is automatically populated from your user profile and is typically disabled for editing to ensure security. This address is used for receiving the loan amount (for borrowers) or for collateral management (for lenders).