The average period of giving loans and releasing collaterals is 5-10 minutes, depending on how fast we receive your deposit
The current state of the network and the network fee size can influence the period of us receiving collaterals. Make sure to set an appropriate network fee so that the transaction is confirmed as fast as possible.
We carefully keep it under control for the whole period of time. Although, if the rate of the collateral currency reaches the liquidation level, the collateral will be automatically liquidated and the loan will be closed. It is impossible to return the collateral after liquidation – that’s why we will notify you multiple times when the current rate approaches the liquidation price.
After your collateral deposit transaction is successfully confirmed, we process your funds through our partner LYOTRADE’s risk management system. After the check, we initiate the loan payout transaction to the wallet you’ve entered when creating the loan. After your funds have reached you, your loan becomes active for as long as you’d like. All the APR you’ll accumulate is to be paid at the moment of collateral release.
At the moment, we support more than 50 assets for collateral deposits including: BTC (Bitcoin), ETH (Ethereum), BCH (Bitcoin Cash), Nano (XNO), DOGE, DGB (Digibyte), XMR (Monero), FIRO, XPR (Ripple) and ETH based tokens such as ENJ, LINK, MKR etc. As for loan currencies, we offer Tether USDT (on different network), BUSD, and USDC. Moreover, we constantly expand our list of available assets.
All the funds are stored in special wallets, and private keys are put in a secure storage that can be accessed only by several IP addresses and through a VPN connection. Private keys for all the wallets are renewed every month. The risk control system checks all wallets’ balances every second.
We welcome any feedback on the product and suggestions from our customers. If you want us to add another asset to the list of the assets available for loans/collaterals, email us to [email protected] or create ticket at support.lyotrade.com and we will do our best to add it ASAP.
You are to define your level of trust to the project. The service was launched with the support of LYOTRADE & DIGICOMS BANK, the companies that have been known to be credible for years. If you need to make sure the service is safe and easy to use, you can always try it with a small collateral. We are constantly taking steps to make the service more credible!
Right now, we don’t have a maximum cap for loans – our liquidity provider allows us to make sure you can loan as much as you’d like. Minimal loan amounts vary by currency – the minimal amount for BTC collateral is 80 USDT for BTC and 30 USDT for ETH and BCH collaterals.
Right now, our loan-to-value, or LTV, is set at 50% – that means that we give you 50% of the collateral value as a loan. This allows us to minimize your risks and protect you from stark volatility of your collateral price.
We are open to your feedback about our LTV and are planning on adding an option to set your own LTV in the future.
We work at a 50% loan-to-value ratio: if your collateral is 1 Bitcoin and it costs $60,000, you will get $30,000 in Tether. Why only 50%? At the 50% LTV, we guarantee we don’t sell your collateral before its price drops by 50%. If our LTV were 90%, we would give you a $54k loan for your $60k, but if the Bitcoin price dropped to $54k, we’d sell it. This is not safe. Low LTV secures your collateral from liquidation.
Our interest rate is one of the lowest on the market. More than that, there are no requirements to store our token to get better Loan conditions like many of our competitors do. All the conditions are transparent from the start. If you have thoughts on how we could offer you better service — feel free to contact our support 24/7. We will find a loan solution that fits you best.
When you repay the loan, we will return you the same amount of cryptocurrency as deposited. If your collateral size is 1 BTC, you will get back 1 BTC irrespective of its current market price. This is the fundamental value we provide: you can get some money now as a loan while your main long-term investment in crypto stays with you and keeps bringing you profits.
Crypto deposits allow you to avoid the risks completely, especially when the crypto market looks uncertain or volatility has significantly increased. No matter the crypto market movement, crypto deposits allow you to earn steadily. Unlike trading cryptocurrencies, crypto deposits do not require you being a cryptocurrency expert. The funds are not frozen for a certain amount of time and are available for withdrawal anytime. The whole process is as easy as that: open a deposit and start earning exactly that day. Finally, while working quite similarly with traditional banking deposits crypto deposits provide you with significantly higher rates.