| Product | Interest due | Interest payment methods | Principal due | Principal payment methods |
|---|---|---|---|---|
| Term loan | Monthly or at maturity | • Cash balance • bitcoin collateral • bitcoin balance (only for monthly interest payments) | 12 months after opening, unless refinanced | • Cash balance • bitcoin collateral |
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:
- Improves your loan-to-value (LTV) ratio, potentially unlocking some of your collateral.
- Lowers your margin call and liquidation price thresholds.
- Reduces your daily interest accrual going forward.
Say you open a payment-at-maturity loan for 10.000 USDT at a 14% Annual Percentage Rate (APR). With no early repayments, you would pay 1.400 USDT in interest at the end of the term. By repaying 2.000 USDT after 6 months, interest would continue to accrue on the 8.000 USDT until the end of the term, for a total of 1.260 USDT at maturity.
Repaying 100% of your principal early does not automatically close your loan. You must formally close it to recover all of your bitcoin collateral.
How to pay interest
You can change the interest and principal payment method at any time. You can’t split interest payment between methods.
What happens if a payment fails
Interest or maturity payments may fail due to insufficient cash or bitcoin balance. 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.