If you're considering using Bit2Me Loan, this FAQ section provides the essential information you need. Here you'll find details on accepted cryptocurrencies as collateral, applicable interest rates, and available discounts through Space Center to optimize your loan.
Table of contents:
- Which cryptocurrencies can I get a loan in, and which are accepted as collateral?
- What is the applicable interest rate for Bit2Me Loan?
- How can I get a discount on the applicable interest rate?
- What is the minimum and maximum amount I can borrow?
- Is it possible to have more than one cryptocurrency loan at a time?
- What is the maturity period for Bit2Me Loan?
- How long does loan approval and reception take?
- Do I remain the owner of the cryptocurrencies used as collateral?
- Do I have to pay taxes for taking out a cryptocurrency loan?
- During the life of a loan, can the interest vary or is it fixed?
Which cryptocurrencies can I get a loan in, and which are accepted as collateral?
When applying for a loan with Bit2Me Loan, you can choose to receive funds in one of the following stablecoins: EURC, USDC.
As collateral for your loan, Bit2Me accepts the following cryptocurrencies: Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP).
Each of these cryptocurrencies you provide as collateral has a Loan-to-Value (LTV) of 50%. This means that, for example, if you deposit 1 BTC as collateral, you can request a loan for an amount equivalent to 50% of the current value of that BTC.
What is the applicable interest rate for Bit2Me Loan?
The applicable interest rate for Bit2Me Loan is 17.50% for EURC and 15.50% for USDC. However, there are bonuses based on the user's level within Space Center:
Space Center Level | Bonus on Starting Rate % |
Level 0 | 0.00% |
Level 1 | 6.27% |
Level 2 | 12.53% |
Level 3 | 18.80% |
Level 4 | 25.07% |
Level 5 | 31.33% |
Level 6 | 37.60% |
Level 7 | 43.87% |
How can I get a discount on the applicable interest rate?
By acquiring the Bit2Me utility token (B2M) and increasing your level within Space Center. Space Center is the level and benefits system for Bit2Me users and B2M holders. Complete missions, earn points, and get greater benefits. You can buy B2M here.
What is the minimum and maximum amount I can borrow?
The minimum amount is set at 100 stablecoin units, and the maximum is 1 million units.
For larger operations, you can contact our team of specialists via our website by clicking here.
Is it possible to have more than one cryptocurrency loan at a time?
Yes, as long as you have the necessary cryptocurrencies to use as collateral. However, Bit2Me recommends not using all available cryptocurrencies as collateral.
What is the maturity period for Bit2Me Loan?
Bit2Me Loan is flexible; it adapts to all needs, allowing you to select the collateral, the loan denomination, and with no fixed term. Repay it whenever and however you want.
How long does loan approval and reception take?
Approval is instant and immediately available due to overcollateralization.
Do I remain the owner of the cryptocurrencies used as collateral?
Yes, you do not lose ownership of the cryptocurrencies under any circumstances, except in the event of a liquidation of the operation. The liquidation of an operation or the "LTV price execution" will be set by default at 85% of the principal value. That is, when the ratio between the principal and the collateral reaches 85% (principal value 85 over a collateral value of 100). Or, to put it another way, when the collateral reaches the point of representing 117.65% of the value of the borrowed principal.
Liquidation will incur a liquidation fee (derived from the management and sale of collateral at the current market price): 2% of the outstanding principal, with a minimum of €100 in the equivalent value of the crypto deposited as collateral.
Do I have to pay taxes for taking out a cryptocurrency loan?
Granting a loan with cryptocurrencies or using them as collateral may have tax implications depending on the regulations of each country. Bit2Me does not offer tax advice; each user must analyze their situation and, if they wish, can rely on the Tax service.
During the life of a loan, can the interest vary or is it fixed?
The final interest rate of your loan is dynamic and can vary depending on your level in Space Center.
The interest you pay is directly linked to the bonuses offered by your user level. Therefore, if your Space Center level changes during the loan's validity (either by leveling up or down), the system will daily recalculate the remaining interest, applying the new bonus percentage corresponding to your current status.
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