If you're considering using Bit2Me Loan, this frequently asked questions section provides you with the essential information you need. Here you'll find details on accepted cryptocurrencies for 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 in Bit2Me Loan?
- How can I get a discount on the applicable interest?
- 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 it take for loan approval and reception?
- Do I still own the cryptocurrencies used as collateral?
- Do I have to pay taxes for taking out a cryptocurrency loan?
- Can the interest rate vary or is it fixed during the life of a loan?
Which cryptocurrencies can I get a loan in, and which are accepted as collateral?
When requesting a loan with Bit2Me Loan, you can choose which of the following stablecoins you want to receive the funds in: EURC, USDC.
As collateral for you to receive the loan, Bit2Me accepts the following cryptocurrencies: Bitcoin (BTC), Ethereum (ETH), Solana (SOL) 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 a value equivalent to 50% of the current value of that BTC.
What is the applicable interest in Bit2Me Loan?
The applicable interest for Bit2Me Loan is 18% for EURC and 16% for USDC. However, there are bonuses based on the user's Space Center level:
Space Center Level | Bonus on base 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?
By acquiring Bit2Me's 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, receive 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 at 1 million units.
For higher amounts, you can contact our team of specialists through our website by clicking here.
Is it possible to have more than one cryptocurrency loan at a time?
Yes, provided 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, adapting to all needs, by selecting the collateral, the loan denomination, and with no fixed term. Repay it whenever and however you wish.
How long does it take for loan approval and reception?
Approval is instant and funds are available immediately due to over-collateralization.
Do I still own the cryptocurrencies used as collateral?
Yes, you do not lose ownership of the cryptocurrencies under any circumstances, except in the event of liquidation. Loan liquidation or "LTV price execution" will be set by default at 85% of the principal value. This means when the ratio between the principal and the collateral reaches 85% (principal value of 85 against a collateral value of 100). Or, to put it another way, when the collateral reaches a point where it represents 117.65% of the principal loan value.
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?
Taking out a cryptocurrency loan or using cryptocurrencies as collateral may have tax implications depending on each country's regulations. Bit2Me does not provide tax advice; each user must analyze their situation and, if desired, can use the Tax service.
Can the interest rate vary or is it fixed during the life of a loan?
The final interest rate of your loan is dynamic and may vary depending on your Space Center level.
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 term (either because you move up or down a level), the system will recalculate daily the remaining interest by applying the new bonus percentage corresponding to your current status.
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