FAQ

Lendbit is a crypto lending platform that allows users to borrow fiat currency by using their crypto assets as collateral.
Simply lock your crypto assets in our secure platform to receive a loan in fiat currency directly to your bank account.
Repay the loan with flexible repayment options, and once paid off, your collateral becomes available again.

We accept a wide range of cryptocurrencies as collateral, including but not limited to Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), Usdt Tether, and more.
Our platform is designed to provide flexibility, so you can use the crypto assets you're most comfortable with as collateral.

Yes, your collateral is safe with Lendbit. We employ industry-leading security measures to ensure the safety and integrity of your assets.
Our platform utilizes advanced encryption techniques and follows best practices in cybersecurity to protect your collateral at all times.

Loans from Lendbit can vary depending on various factors, including your country of residence and the amount of collateral provided.
However, we strive to provide a quick and seamless loan experience, with many users receiving funds within a business day of approval.

The Loan To Value (LTV) ratio is a key concept in the world of lending, including crypto-backed loans.
In the context of crypto-backed loans, the LTV ratio indicates the percentage of the loan amount relative to the value of the borrower's cryptocurrency assets used as collateral.

For example, if a borrower offers $10,000 worth of Bitcoin as collateral for a loan of $6,000, the LTV ratio would be 60%.

Volatile Assets:

Volatile assets are cryptocurrencies whose price can move upwards or downwards at any moment like Bitcoin, Ethereum, e.t.c.
Initial LTV is set to 60% when you select a volatile asset as collateral. That means your loan will be 60% of your collateral value.

For example, if a borrower wants a loan of $6,000 and they select Bitcoin as collateral, they'll be required to send $10,000 worth of Bitcoin

Stable Assets:

Stable assets are cryptocurrencies whose prices are pegged to the US Dollar like USDT, BUSD, USDC, e.t.c.
Initial LTV is set to 80% when you select a stable asset as collateral. That means your loan will be 80% of your collateral value.

For example, if a borrower wants a loan of $8,000 and they select USDT as collateral, they'll be required to send $10,000 worth of USDT

Loans incur daily interest rates as low as 0.114%, which amounts to approximately 0.8% per week.
Interest begins to accrue one hour after the loan is issued and is calculated every 30 minutes.

The Initial LTV represents the starting ratio of your loan amount to the value of your collateral. For example, if you use Bitcoin (BTC) as collateral, the Loanable Amount (USDT) divided by the Collateral Amount (USDT) must be ≤ 60%. This ensures your loan is secured with a reasonable buffer.

The Margin Call LTV is a threshold at which you'll receive a notification to add more collateral. If your Loaned Amount with Interest (USDT) divided by the Collateral Amount (USDT) reaches ≥ 70%, you must act to maintain your position and avoid further risks.
You'll be notified on 3 occassions (within 6 hours) to take action.

If your LTV reaches the Liquidation Level (≥ 85%), auto-liquidation of your collateral will be triggered. This means your collateral will be sold automatically to repay your loan and accrued interest and any balance will be refunded to your wallet.
To prevent forced liquidation, it's crucial to monitor your LTV and adjust your collateral as needed.

To avoid auto-liquidation, you should:

1. Monitor your LTV regularly through your Lendbit dashboard as you will also be notified if your LTV status changes.
2. Add more collateral if your LTV approaches the Margin Call level (70%).
3. Repay part of your loan to reduce the outstanding amount.

After the loan term expires, a 2-hour grace period is granted. Once this period ends, the loan interest rate increases by 10%, and auto-liquidation is triggered if the LTV exceeds the marginal threshold.

Yes, if auto-liquidation is triggered, your collateral will be sold to repay your debt, and release balance back to you if theres any.