ProductInterest dueInterest payment methodsPrincipal duePrincipal payment methods
Term loanMonthly or at maturity• Cash balance
• Bitcoin collateral
• Bitcoin balance (only for monthly interest payments)
• Linked bank account (only for monthly interest payments)		12 months after opening, unless refinanced• Cash balance
• Linked bank or wire transfer
• Bitcoin collateral
• Bitcoin balance
Line of creditBilled on the 1st and due on the 15th unless paid early or rolled over• Line of credit
• Cash balance
• Bitcoin balance
• Linked bank account		No due date• Cash balance
• Direct deposit
• Bitcoin collateral upon closure
• Bitcoin balance upon closure

For payments made from your bitcoin balance, trading fees apply. For payments made with bitcoin collateral, a 0.79% fee applies to personal accounts opened in all states where borrowing is available, except for Texas, Montana, Michigan, Missouri, Minnesota, or Washington. Paying with bitcoin may have tax implications.

How to repay principal

You can pay down at maturity from any payment method or at any time from your cash balance. There are no prepayment penalties. Lowering the outstanding balance due at maturity:

Say you open a payment-at-maturity loan for $10,000 at an 11.25% Annual Percentage Rate (APR). With no early repayments, you would pay $1,125 in interest at the end of the term. If you repay $2,000 after 6 months, interest would continue to accrue on the $8,000 until the end of the term, for a total of $1,012.50 at maturity.

Repaying 100% of your principal early does not automatically close your loan or line of credit. You must formally close it to recover all of your bitcoin collateral.

How to pay off a loan with a bank transfer (ACH) or wire transfer

You can initiate loan closure using a pending cash balance or an in-flight bank or wire transfer. Either way, interest stops accruing as soon as you initiate the deposit, and the loan closes when the deposit clears.

While the payoff is pending:

  • The loan is still subject to margin calls and liquidation.
  • If the loan reaches maturity, the 10-day overdue grace period starts.
  • If the deposit doesn't go through, your loan stays open, and interest resumes from that point forward.
  • If you deposit more than necessary to close off your loan, the remainder is added to your cash balance.
  • You can cancel the pending closure, which reopens your loan. Any in-flight funds, such as a wire you already sent, will still be credited to your cash balance.

If you pay by bank transfer, the deposit may take up to 10 days to clear. If you pay by wire transfer:

  • Include the unique memo shown with your wire instructions and send the exact payoff amount.
  • A wire for more than the payoff still closes the loan, with the excess credited to your cash balance.
  • A wire for less does not close the loan. The full amount is credited to your cash balance, your loan stays open with interest resuming from that point forward, and you can make a partial repayment from that balance and then wire the remaining payoff amount to close.
  • The wire must be credited within 4 calendar days, or the closure does not go through.

How to pay interest

You can change the interest and principal payment method at any time. You can’t split an interest payment between methods.

If you roll interest into your line of credit principal, you must use another payment method at least once every rolling 12 months. Otherwise, interest accrued in the 12th month is charged to your cash balance. If using your line of credit would raise the loan-to-value (LTV) ratio to 70%, or you are already in a margin call, your cash balance is charged instead.

What happens if a payment fails

Interest or maturity payments may fail due to insufficient cash or bitcoin balance, a disconnected or invalid linked bank account, or a reached deposit limit. If you experience repeated issues, contact support.

If you miss a payment, you have a 10-day grace period. After that, we’ll liquidate enough bitcoin collateral to cover the overdue amount.