| 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) • Linked bank account (only for monthly interest payments) | 12 months after opening, unless refinanced | • Cash balance • Linked bank or wire transfer • bitcoin collateral |
| Line of credit | Billed 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 |
For payments made in bitcoin, 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:
- 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 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. By repaying $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
If you choose either of the two methods while closing your loan, interest stops accruing as soon as you initiate the deposit, and the loan closes when the deposit clears. While the deposit 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 does not go through, your loan stays open, with interest resuming from that point forward.
- If you deposit more than necessary to close off your loan, the remainder is added 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 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.