User:
What are the requirements to the user to obtain a bitcoin-backed loan on Biterest?
Support service:
Biterest respects the privacy and does not require any personal information from the users. To register, you need to specify only your email. You can receive loans immediately after registration on Biterest without verifying your identity.
User:
Why do I need a bitcoin-backed loan?
Support service:
On Biterest, you borrow money while your bitcoin is stored as collateral. Thus, in order to cash out Bitcoin, you do not need to sell it. Your bitcoin keeps belonging to you and grows in price following the growth of the BTC rate. You can repay the loan at any time and get your collateral back in full.
User:
What cryptocurrencies can be used as collateral?
Support service:
On Biterest, all the loans are backed only by Bitcoin (BTC).
User:
What is the minimum collateral amount?
Support service:
The minimum collateral amount is 20% more than the amount of the requested loan. For example, if your borrow 1000 USD, then your collateral has to be at least equivalent to 1200 USD.
User:
How shall I provide collateral?
Support service:
Click the “Top up balance” button on the “Instant loan” page. Send the required bitcoin amount to the Bitcoin address indicated in the window. The top-up amount will appear on your Biterest account balance after 3 confirmations of the transaction in the Bitcoin blockchain. As soon as your balance will be replenished, your loan limit increases.
User:
Can I change the amount of the collateral on my account balance after receiving a loan?
Support service:
You can either add extra bitcoin to your balance in order to increase your collateral or withdraw the excess bitcoin from your balance. Please note that the level of LTV in your account will increase after withdrawals and decrease after replenishes.
User:
What is LTV?
Support service:
LTV is the ratio of your used loan limit (USD) to the current collateral value on your Biterest account balance (USD). Your initial LTV is 83% if the provided collateral is only 20% higher than the loan amount.
User:
What will happen if the LTV in my account reaches 90%?
Support service:
The higher the LTV is, the higher the risk of Margin Call is. By default, at LTV 80%, we will notify you to add additional collateral or repay partly the loan in order to lower your LTV level. If the LTV reaches 90%, Margin Call will occur and we will have to liquidate your collateral in order to pay off your debt.
User:
What influences the increase of LTV?
Support service:
LTV increases in three cases:
1) upon obtaining a loan;
2) upon withdrawing bitcoin from the account balance;
3) when Bitcoin’s price decreases.
User:
How to reduce the risk of Margin Call?
Support service:
If the risk of Margin Call increases, you should partly repay your loan or provide additional collateral by replenishing your account balance. It is recommended to keep the LTV level at around 50% in order to protect yourself against a sharp drop in Bitcoin price.
User:
Is it possible to set up notifications about the risk of Margin Call?
Support service:
By default, email notifications about the risk of Margin Call are dispatched every 3 hours as soon as the LTV level exceeds 80%. On the “Notifications” page, you can manage the settings to decrease or increase the LTV level and the frequency of the notifications.
User:
What currencies can I get a loan in?
Support service:
Regardless of the currency in which you receive the money, your used loan limit is always fixed in dollars (USD). You can receive funds in any of the following currencies: Tether (USDT), Bitcoin (BTC), Ethereum (ETH).
User:
What is the Biterest commission for obtaining a loan?
Support service:
Biterest does not charge any fees either for receiving loans or withdrawing Bitcoin from the balance.
User:
How long will it take to receive the loan?
Support service:
The maximum time for issuing a loan after making a loan request is 8 hours. After the money is sent to you, the status of your loan request on the “Transaction History” page will change to “Done”. If you have not received money within 3 hours after the loan was sent, please contact Biterest support to clarify the circumstances.
User:
How is the interest calculated on the loan?
Support service:
After the loan is issued, the interest will be automatically accrued for the first 14 days of the loan. Starting from the 15th day, interest will be calculated daily, in the amount of 0.033% of the loan. The accrued interest is taken into the used loan limit, but there is no interest capitalization (in other words, no interest is accrued on interest).
User:
How to repay the loan?
Support service:
To repay the loan, click the “Repay a loan” button on the “Instant loan” page. You can redeem the loan instantly with Bitcoin from your account balance or send the cryptocurrency to the specified address by yourself. The available currencies are Tether (USDT), Bitcoin (BTC), Ethereum (ETH). After repayment, your loan limit will increase and your LTV will decrease.
User:
Can I partly repay the loan?
Support service:
It is available to pay off the loan partly or in full. In the case of partial repayment, the accrued interest will be paid first, then the loan body.
User:
How to pay off the interest on the loan?
Support service:
The methods to repay the interest are the same as to repay the loan. The interest accrued for the previous month has to be repaid by the 4th day of 00:00 GMT of the current month. If you do not pay off the accrued interest by yourself, they will be automatically debited from your account balance. Three days before the due date, you will receive an email reminder.
User:
Is there a minimum loan term (period)?
Support service:
There is no minimum loan term on Biterest. You can repay the loan at any time. Please note that upon repayment, the amount of interest will be paid first, because the interest is calculated for the first 14 days immediately after the loan is issued.
User:
What is the minimum amount of Bitcoin I can withdraw from my balance?
Support service:
The minimum withdrawal amount is equivalent to $50.00. If your available withdrawal balance is less than $50.00, you can withdraw it in full.
User:
How to withdraw Bitcoin from the Biterest account balance?
Support service:
You can withdraw Bitcoin from your balance at any time unless it is currently used as the required collateral for an outstanding loan. Biterest does not charge any withdrawal fees. Click the “Withdraw bitcoin” button on the “Instant loan” page. Enter the amount of BTC you want to withdraw and your BTC address. For security reasons, withdrawal time can be up to 8 hours because the collateral is stored in a cold wallet.
User:
Can I withdraw Bitcoin from Biterest account balance if I have an outstanding loan?
Support service:
Yes, you can withdraw Bitcoin from your balance without repaying the loan. The main requirement is that the amount on your balance must be higher than the minimum required collateral. For example, there is 1500 USD on your balance and your used loan limit is 1000 USD. Since the amount of the required collateral has to be at least 1200 USD (1000 + 20%), you can withdraw 300 USD.
User:
If the Bitcoin’s price increases, can I withdraw the excess collateral from my Biterest balance?
Support service:
Yes, the higher the BTC rate is, the more bitcoin can be withdrawn from the balance without repaying the loan.
User:
What measures are available to protect my Biterest account?
Support service:
For additional protection from phishing, please enable two-factor authentication on the “Settings” page. You will need to enter a code every time if you log into your account, create a loan request, withdraw Bitcoin from your balance.
If the authorization to your Biterest account does not match the parameters of the previous one, you will be notified by email. By default, the system compares the country and the web client. On the “Settings” page, you can see your login history and change the parameters of the notifications.
In case you find an authorization that does not belong to you, immediately block access to your account, create a new password, and contact Biterest support. Until the circumstances are clarified, all operations, except loan repayments, will be suspended.
How to get a loan in 3 three steps:
