FAQs

FAQs
How quickly can I get a crypto loan? How quickly will you refund me the collateral?
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.
What is your APR and how is it calculated?
The annual percentage rate depends on the selected loan currencies and ranges from 12% to 16%. The interest is calculated monthly from the time the loan was taken and is included in the repayment amount.
What if the collateral’s currency rate changes after I get a crypto backed loan?
The collateral’s currency rate doesn’t affect the amount of the loan buyback at the time of closing. You will receive the exact amount of collateral for the exact amount you loaned (+ accumulated APR)
What can happen with my collateral?
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.
What happens when I deposit my collateral to LYOTRADE?
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.
What assets does LYOTRADE support?
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.
How do you store my collateral?
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.
How can I get my collateral back?
You can get you collateral back anytime. In order to do that, you have to make your loan’s repayment. It consists of the amount loaned and the accumulated APR counted monthly during your loan’s period.
I want to deposit an asset that you don’t support yet. What do I do?
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.
How risky is LYOTRADE?
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!
What is liquidation price?
The liquidation price, or LP, is the collateral’s asset value at which we have to liquidate your loan. This amount is calculated due to us being able to compensate the issued loan if the collateral’s value drops in price significantly.
What are the limits for loans on your platform?
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.
What’s your LTV?
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.
How is the collateral calculated?
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.
Can I close my loan at any time?
Yes, there are no restrictions. You can close your loan in a month, a year, or even tomorrow and we’ll return your collateral with no questions. Note that for loans shorter than 30 days, there’s an extra closing $100 fee.
Can I have multiple loans?
Sure, you can have multiple loans with different or the same collateral. You will track them as separate loans. When it comes to the repayment, interest and fees are charged for each loan separately.
I have a better rate offered by a competitor. Can you match it?
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.
Where can I see the details about my loan(s)?
At the top of the page, click “Track my loan”. Sign in with your phone number and see your loan data: the size of your deposit and the loan, the repayment amount, and the price chart showing how far your collateral is from the liquidation price.
What happens if the market goes up and my collateral is worth more?
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.
Win against volatility without risks
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.
Last modified 7mo ago