How-to-use: Bitcoin-backed loans

[@xynaka]

Btc loan is the future 🎉. Will use ledn again soon. I was an user of ledn. So far the most credible

[@cob302v8]

If the annual interest rate is say 10% per annum, and I wish to pay the loan back in full after 3 months, am I still liable for the full 10% interest, or would the interest be pro-rated for a 3 month period only, namely then at 2.5% in reality?

[@LednInc]

Ledn Loans can be repaid at any time before the maturity date without penalty. Interest is charged on a daily basis so users only accumulate interest for the days that they have the open loan. More info: help.ledn.io/hc/en-us/articles/4404246609431-When-are-payments-due Please check out our help center for other Loan FAQs or contact [e-mail] for customized assistance with your account.

[@jennysoapdish4502]

Do borrowers need to make monthly payments or simply pay off the loan whenever they want with 12 months?

[@LednInc]

No monthly payments. Pay off the loan when you want. If your LTV is in good standing, you're eligible for auto renew at the 12 month mark.

[@juliandiaz9367]

Are mortgages available for non-USA customers?

[@LednInc]

Hi - thanks for the question. Please reach out to [e-mail] and we can address your specifics

[@cob302v8]

If I use auto top feature to add more BTC from my saving account when LTV reaches 70%, what happens when LTV returns to 50%? Will the additional BTC top up taken from my BTC savings account, be automatically returned to said BTC savings account?

[@LednInc]

We have a "loan rebalancing feature" that allows users to redeem excess collateral when their LTV hits 30%. When a loan is eligible, you'll see a "Redeem collateral" button in the LTV column of your "Active Loans" tab. For more info: help.ledn.io/hc/en-us/articles/15079575683095-How-to-redeem-excess-collateral#:~:text=To%20address%20this%2C%20we're,your%20LTV%20dips%20below%2030%25.&text=Both%20B2X%20and%20Dollar%20Loans,have%20an%20LTV%20below%2030%25.

[@cob302v8]

Thanks but this makes little logical sense. The standard conditions are 50% LTV, so then it makes sense to rebalance any excess collateral when this figure is reached, vs 30% LTV. Otherwise, I have excess collateral tied up. If you auto top up at 70% LTV, then logically you should return excess collateral to the BTC savings account when LTV returns to 50%. This is illogical and unfair

[@jes0lis]

Aren't the gains taxable?

[@jackblack1097]

There are no gains, you only take a loan and repay it back. You never sold your bitcoin. It is a big difference. It is basically as you take loan on your home, you never have to pay tax on that either

[@Jay-be3um]

What happens when the value of BTC is considerably less than when you took out the loan?

[@LednInc]

When the BTC collateral value in US dollars drops, your loan’s LTV ratio increases. If value drops significantly, we will ask you to deposit more collateral into the collateral address of your loan, or pay down all of your outstanding loan balance. We strongly encourage all our clients to enable our Auto Top Up feature to avoid unplanned liquidations. More here: help.ledn.io/hc/en-us/articles/4407501691415-What-happens-if-the-value-of-BTC-or-ETH-significantly-decreases

[@locotest22]

Can lets say pay 1/3 of the loan after some time or the payment must be in full?

[@LednInc]

help.ledn.io/hc/en-us/articles/4404246609431-When-are-payments-due

[@ivankowalski5009]

The link doesn't answer your question. I'd like to know the answer to this also.