Attention! The Biterest administration has the right to make changes to the current rules of Biterest. Last updated on 1 September, 2020.
1. The types of borrowing on Biterest
There are two types of lending services on Biterest – borrowing on Biterest credit line and lending and borrowing on Biterest Marketplace. The services are available in the corresponding sections of the platform.
The Biterest credit line allows the Borrower to receive an instant bitcoin-backed loan on the Biterest platform. The approval process is automated. Biterest approves applications within the Borrower’s available loan limit.
The Biterest Marketplace service allows Biterest users to make loan transactions directly with each other (Peer-to-Peer). The Biterest Marketplace has differences in lending methods:
- The Lenders market allows lenders to publish loan offers. The borrower who has accepted the offer may indicate further information on the loan and create a loan application from the offers. The Lender must transfer the money to the Borrower no later than specified in the payment window.
- The Borrower’s Market allows borrowers to publish loan applications on their own terms. The acceptance of loan applications depends only on the attractiveness of the loan terms to Lenders.
The Borrower and the Lender may use any of the lending methods on the Biterest Marketplace to complete credit transactions.
The further loan terms are only about the Biterest credit line service To familiarise yourself with the mechanics of the Biterest Marketplace, read the rules at https://markets.biterest.com/en/support/3/1
2. Lending on Biterest crypto-backed credit line
2.1. Balance top-up and loan limit
In order to receive a bitcoin-backed loan on Biterest, the Borrower must top up their account balance with Bitcoin. The bitcoin on the balance will be used as collateral for obtaining a loan as well as for full or partial repayment of the loan. The borrower can top up balance for any amount.
The account balance on Biterest crypto-backed credit line is different from the account balance on Biterest Marketplace. Each type of the balances can only be used within a specific service and within the framework of its mechanics. The funds are not transferred between the balances.
In order to top up your balance on Biterest crypto-backed credit line, click the Top up balance button. In the window that opens, a Bitcoin address will be available for you to send the necessary amount of Bitcoin to.
You can track the progress of funds transfer on the Transaction history page. The amount will appear on your balance after 3 confirmations of the transaction in the Bitcoin network.
Biterest account balance is a special account for storing your bitcoin as collateral and determining the size of your loan limit. You can send bitcoin to your balance in any quantity.
Loan limit is the maximum loan amount in USD that is available for borrowing by the Borrower. The size of the loan limit depends on the amount of bitcoin on the balance and their market value at a particular moment.
To obtain a loan, the minimum required balance level should be 120% of the loan amount. You can withdraw bitcoin which is above this level from your balance at any time.
The Instant loan page displays the current status of the account balance in BTC and in USD at the current Bitcoin rate. When the balance changes, the displayed amount changes accordingly.
2.2.The Loan Terms
Credits received as part of Biterest crypto-backed credit line do not have a mandatory repayment term. You pay only for the actual days of using the loan until it is fully repaid.
The interest rate is 12% per annum or 0.033% per day. After the loan is issued, the interest will be automatically accrued for the first 14 days of the loan. Starting from the 15th day of the loan, interest will be calculated daily, in the amount of 0.033% of the loan amount.
The accrued interest is taken into account in the used loan limit and it reduces the amount of funds available to the Borrower within their loan limit.
When repaying a loan, accrued interest is automatically repaid first.
2.3. Creating a loan application
To obtain a loan secured with Bitcoin, the Borrower needs to fill out the form on the Instant Loan page and provide the following information:
- Loan amount in USD. Indicate the desired amount within the loan limit.
- Amount in the currency to receive. Choose the appropriate currency to receive a loan. The field displays the loan amount in the currency of receipt at the current Biterest exchange rate. To get a loan, Bitcoin, Etherium, Tether are available.
- The required amount of collateral. The field displays the amount of bitcoin which is required as a security deposit on the balance to receive the requested loan amount in USD.
- In the Payment information section, select the appropriate type of payment depending on the selected currency. Indicate your details for receiving funds.
Upon applying for a loan in Bitcoin, it is also available to receive funds not only to the Bitcoin address, but deposit a loan to the own Biterest account balance.
To send a request for a loan, click the Apply for a loan button. In the window that opens, verify the accuracy of the specified details of your loan request and confirm the application for a loan.
You can track the progress of the application on the Transaction history page. If within three hours after issuing a loan the funds do not arrive at your details, please contact Biterest support on the Help page.
If we are unable to send funds due to inaccurate details, or if the additional information is required from you, an appropriate warning will be displayed on the Transaction History page. If you receive a notification about a problem with sending funds, please contact Biterest support on the Help page.
2.4. Loan repayment
You can repay the loan in whole or in part. When repaying a loan, accrued interest will be paid off first, and then – the loan body.
To repay a loan, click the Repay a loan button. In the window that opens, select a loan repayment method:
- Redeem from the account balance – Allows you to use available funds on the account balance to repay. Payment is made with bitcoin which is stored on the account balance. Payment from the account balance will be made immediately.
- Cryptocurrency redemption – Allows you to use cryptocurrency (Bitcoin, Etherium, Tether) to repay your loan.
Payments in cryptocurrency are approved after the Biterest administrator confirms that the funds have been received. You can track the status of repayment on the Transaction history page.
If the Biterest administration is unable to confirm the receipt of funds, or you need additional information to make a payment, you will receive a warning on the Transaction history page. If you receive a notification about a problem with depositing funds, please contact Biterest Support on the Help page.
2.5. The withdrawal of bitcoin from the account balance
To withdraw Bitcoin from the balance, click the Withdraw bitcoin button. In the window that opens, enter the Bitcoin address to which you want to receive bitcoins from the balance, and specify the amount of withdrawal. Next, check the entered Bitcoin address and confirm the request for withdrawal of funds.
You can withdraw funds from the balance in whole or in part. Only after the whole repayment, it is possible to withdraw the entire amount of bitcoin from the balance.
The minimum withdrawal amount from the account balance cannot be less than 50 USD. If your available balance is less than 50 USD, you can withdraw your entire balance.
You can always repay the loan in part and withdraw the amount that exceeds the required collateral for the current loan (120% of the amount of the current loan).
You will not be able to withdraw bitcoin from the balance in case of Margin Call occurrence, since your balance will be liquidated to pay off your debt.
After the withdrawal of bitcoin from the balance, the amount of available loan limit will automatically decrease. If the loan is valid, the risk of Margin Call will increase.
You can track the status of the request withdrawal from the account balance on the Transaction history page.
If you receive a notification about a problem with the withdrawal of funds from the balance, please contact Biterest support on the Help page.
2.6. Margin Call
Margin Call is a situation in which the account balance is automatically liquidated to pay off the borrower’s debt on the loan.
Margin Call occurs when LTV (Loan to Value ratio) exceeds 90%. This is due to a decrease in the bitcoin price, when the market value of the account balance becomes lower than to the amount of the used loan limit + 10%.
Indicators of the market value of Bitcoin and the value of the account balance at which Margin Call occurs are always available on the Instant loan page.
Topping up the account balance or repaying a loan increase the amount of available funds on the balance and reduce the risk of Margin Call.
When Margin Call occurs, the debt of the Borrower is repaid by bitcoin from the account balance.
3. General situation
3.1 Currency of loans
All loans on Biterest are fixed in USD (US Dollar).
The borrower has the right to receive a loan in an alternative to US dollar loan currency. The currency is selected by the borrower by filling out a loan form. The borrower receives funds in the selected currency at the US dollar rate. The borrower can repay the loan in any currency and in any of the available ways: from the account balance and cryptocurrency in terms of the US dollar exchange rate at the time of loan repayment.
The borrower assumes all risks associated with changes in the currency exchange rate.
3.2 Biterest application