Loan terms of Biterest crypto-backed credit line

10 February 2020
Read: 4 min

Welcome to Biterest! Open the credit line to receive instant USD loans against your Bitcoin.

It is possible to receive a loan only backed by collateral. To provide collateral, top up your account balance with Bitcoin.

You can send any quantity of Bitcoin to your balance. The loan limit calculation is based on your current account balance.

You can withdraw bitcoin without repaying the loan, if there is more bitcoin on your balance than is currently required for the collateral.

In order to “unfreeze” your collateral, you need to repay your loan. If your current balance amount is more than 20% higher than your used loan limit, you can withdraw an excess Bitcoin from your balance without repaying the loan.

In order to receive a loan, your account balance must be at least 20% more than the requested loan amount.

Loan limit is the maximum amount of funds that can be loaned at the current account balance.

Used loan limit is the amount of funds that are currently using in a loan.

Available reflects the amount of funds that you can receive in a loan within the current loan limit.

The loan amount is fixed in US dollars (USD), regardless of the currency of receipt.

Currently the loan can be sent to you in the following currencies: Bitcoin (BTC), Ethereum (ETH), Tether (USDT).

Loans on Biterest crypto-credit line do not have a mandatory repayment term. You pay only for the actual loan days, from the moment of issuing to repayment.

The annual interest rate is 12%. After the loan is issued, the interest will be automatically accrued for the first 14 days. Starting from the 15th day, interest will be calculated daily, in the amount of 0.033% of the loan.

The interest on the loan is recorded in the used loan limit, but there is no interest capitalization (in other words, no interest is accrued on interest). If the amount of accrued interest per day is less than 0.01 USD, they will be automatically rounded up to 0.01 USD.

You should repay the accrued interest on your loan for the past month by the 4th day 00:00 GMT of the current month. If you do not repay the accrued interest by yourself, they will be automatically withdrawn from your account balance. Three days before the automatic repayment date, you will receive a reminder by email.

You can repay the loan partly or in full at any time. There is no minimum loan period. In a case of the partial repayment of the used loan limit, each payment covers the accrued interest first, and anything left is applied to the principal.

You can repay the loan with Bitcoin (BTC), Ethereum (ETH), Tether (USDT) and immediately from your account balance.

LTV (loan-to-value ratio) is calculated by dividing your used loan limit by the current value of bitcoin stored on your balance.

Margin Call occurs when your LTV reaches 90%. In this situation, your loan is automatically repaid using the bitcoin from your balance.

You can control the risk of Margin Call occurrence. To reduce the risk of Margin Call, additionally top up your account balance or make a partial loan repayment. On the “Notifications” page, you can manage the settings to decrease or increase the LTV level and the frequency of the notifications.

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