LendaBit | Frequently Asked Questions (FAQ)

Why use the LendaBit platform?

The platform has been designed to remove all unnecessary steps from the lending process, thus more attractive terms and conditions to both lenders and borrowers. The customer interface and data processing behind it are structured so as to support prompt and secure transactions. Normally, making a loan or lending should require just a few clicks.

By using the LendaBit services, you unlock the value of your cryptocurrencies in an easy and straightforward process that benefits every platform participant.

How does a LendaBit.com loan work?

LendaBit connects lenders and borrowers by matching their financial demands on our platform and helping them strike deals. Prospective borrowers and lenders place Loan Requests and Loan Offers and indicate the loan parameters they prefer: interest rate, term, loan amount, etc. Interest rate is fixed at a level that should be attractive for risk-free lending to both lenders and borrowers. All loans are secured by crypto collateral and the value of pledged collateral is closely maintained to ensure full risk coverage at all times. Collateral remains property of the borrower and is promptly returned upon loan repayment.

How are different Loan Wizard, Loan Offer, Loan Request and Loan Pool?

Loan Wizard makes access to crypto loans simpler, faster and trustworthy. Only 5 clicks — and you have your loan solution to cover your needs! Loan Offers are made by lenders who indicate details of their lending proposition like loan amount, loan term, loan cryptocurrency, interest rate, etc. The offers may be accepted by borrowers as soon as they provide sufficient crypto collateral. Loan Requests are made by borrowers who indicate details of their borrowing requirement like loan amount, loan term, loan cryptocurrency, interest rate, etc. The requests may be accepted by lenders who have provided sufficient deposit to make the loan. Loan Pool is a pool of standardized Loan Offers for quick access and search by borrowers. Once a qualified borrower accepts a Loan Offer, or a qualified lender accepts a Loan Request, the deal between them is struck and the loan is made.

Are LendaBit.com loans secured?

LendaBit loans are secured by crypto collateral provided by borrowers. The crypto collateral value is monitored on an ongoing basis to make sure the loan amount is covered by crypto collateral at all times. Borrowers are requested to add crypto to their collateral if its value decreases.

What is the interest rate on the loans?

Borrowers and lenders set interest rates on their own when they make Loan Requests and Loan Offers. The interest rate is the cost to pay on a loan for the borrower.

How is the interest on loans calculated?

Interest is calculated based on the formula: Daily Interest = (Loan Amount × Interest Rate) / 360, where 360 is used for the number of days in the year no matter what the actual number (365 or 366) is.

What is an LTV ratio?

Loan-To-Value (LTV) ratio is a percentage calculation that helps measure the ratio of a loan to the value of pledged collateral. In order to calculate the initial LTV ratio, it is necessary to sum up the amount of a loan and interest, then divide into the amount of pledged collateral and finally multiply by 100.

How quickly can the loan be made?

Lenders are ready to make loans as soon as they have registered on the platform and provided a deposit. Borrowers are ready to apply for loans as soon as they have registered on the platform and provided crypto collateral. Normally, this will require just a few clicks.

What are the minimum and maximum loan amounts?

The minimum and maximum loan amounts can be viewed at Loan Terms and Benchmarks and there you will find a complete and comprehensive list of all rates and fees.

What are the minimum and maximum lending periods?

The minimum and maximum lending periods are 1 day and 3 years accordingly.

What is collateral?

Collateral is an asset(s) that a borrower pledges as security for loan repayment to a lender. Collateral is needed to protect the lender from various financial risks including, but not limited to, borrower’s failure to repay the loan, market volatility or default, among other things.

In which cryptocurrencies are loans available?

Please visit Loan Terms and Benchmarks and there you will find a complete and comprehensive list of available loan cryptocurrencies. If you have interest in a specific currency, please advise us details at info@lendabit.com.

Can loans be made in another crypto, other than cryptocurrency of collateral?

At this point, we only offer crypto versus crypto loans that are high in demand. However, we will promptly respond to any emerging demand from the community of lenders and borrowers. If you are interested in specific crypto versus crypto loans, please advise us details at info@lendabit.com

Are any fees charged by LendaBit.com?

LendaBit.com charges a system fee according to the applicable rates provided in Loan Terms and Benchmarks, payable by lenders and borrowers.

In which countries are LendaBit.com services available?

LendaBit.com P2P lending services are available around the globe to anyone who has access to our online platform. The list of restricted jurisdictions can be viewed here.

Where can we see the details of our loans?

You can view your loan details in section "ACTIVE DEALS" of your LendaBit account.

Which mobile devices and OSs does LendaBit.com support?

LendaBit operates through its website platform, and therefore can be easily accessed both on desktop and mobile devices.

What is Tether (USDT)?

Tether is a blockchain-based platform designed to facilitate the use of fiat currencies in a digital manner. Its native cryptocurrency (USDT) is a stablecoin issued on the Bitcoin blockchain through the Omni Layer protocol. It can be issued via the Omni Layer (OMNI), Ethereum (ETH20), EOS (EOS) or TRON (TRC20) protocols. LendaBit.com currently supports USDT (OMNI) only. It is pegged to traditional fiat currencies (1:1 ratio). It is globally used for lending/borrowing, storing and trading on crypto exchanges due to reliability, transparency, low transaction fees, speed and wide acceptance.