- I. General conditions
- II. Conditions for borrowers
- III. Conditions for lenders
- IV. Technical framework
- V. Privacy, contract termination, liability
- VI. Other conditions
I. General conditions
1. Scope of these terms, conclusion of the contract
1.4 LendaBit does not offer any advisory or consulting services nor in investment or in taxation or legal issues or escrow services. LendaBit does not provide financial services. LendaBit is only a website (marketplace) to mediate loans between investors and borrowers. This means that it is in user’s own responsibility if a bitcoin or another cryptocurrency secured USDT loan is a suitable contract for them subject to their personal general and financial circumstances.
2.1 The use of the LendaBit is only possible after a registration and client identify/verification according to AMC/KYC policies. At registration the user has to state an email address as a username and choose a password. You can also register using your social network account. The LendaBit provides 2FA (double-factor authorization) for it’s users via Google Authenticator that implements two-step verification service. Authenticator provides a six- to eight-digit one-time password which users must provide in addition to their username and password to log in. The users may use or decline to use 2FA on their own discretion.
2.2 Before users can get or fund USDT loans they need to fulfil registration. To complete the registration, the client has to comply with identify/verification according to AMC/KYC policies and state the following information:
- First and Last name;
- Date of birth;
- Phone number;
- ID document type and number, issue and expiration date, country of issue;
Our identity verification procedure requires the customer during the registering to provide us with:
- not expired ID document (e.g., national ID or international passport or driver licence) – first page with photo.
- proof of address (e.g., a certified tenancy agreement or a bank statement with address and name mentioned (issued not more than 3 months ago) or a utility or electricity bill with address and name mentioned (issued not more than 3 months ago) or tax return or council tax with address and name mentioned (issued not more than 3 months ago) or other official document with current resident address and full name).
The customer should provide us with the scan copy of abovementioned documents AND a “selfie” photo of him(her)self holding one of ID document (mentioned in “a” above) and a sheet of paper with the inscription “LendaBit” and the current date. Once the registration and identity verification procedure is complete and confirmed by us, the customer can use LendaBit.
The Lendabit has a right to reject any person on registering on www.lendabit.com and using related services according to AML/KYC policies. The LendaBit may from time to time temporarily reject customers from some countries/territories. This can be because of legal issues or AML policies or technical reasons or other temporary reason. The current list of such countries/territories can be seen here.
2.3 The rights from this contract and the personal area are not transferable. Users are required to keep their password secret and to change the password immediately if there is a certain likelihood that third parties might have access to the password. LendaBit will never ask users for their password, neither by email nor by telephone. Therefore users will never reveal their password by phone or by email, even if an email or telephone call makes the impression to be coming from LendaBit.
2.4 During the registration users are required to state correct and complete information about themselves. This data is stored in the personal area which is only accessible by the user.
2.5 Users inform LendaBit immediately about any changes of the stated data. This especially applies to contact information.
2.6 Users may change their personal information at any time. In case to do it users should send an e-mail to the customer service department, so this can be sorted out for users.
3. Functioning and use of the marketplace
3.1 Users can act as a borrower and/or as a lender on the marketplace LendaBit. Borrowers users can use borrowed USDT and lenders user can lend USDT to borrowers and thereby earn an interest income on these USDT. All USDT loans on LendaBit must be bitcoin-secured (with a bitcoin collateral).
3.2 LendaBit runs the marketplace to broker the conclusion of bitcoin secured USDT loan contracts. In addition to that LendaBit offers user additional paid services that are related to such different roles of LendaBit:
- as a provider of the technical platform of the marketplace;
- as a service provider for the conclusion and administration of bitcoin secured USDT loans as well;
- as a provider of additional paid services.
4. General rules for borrowers and lenders
4.1 To protect the privacy of all users, both borrowers and lenders generally remain anonymous to each other.
4.2 The user receives a personal identification number from LendaBit ('user ID'), by which borrowers and lenders are identifiable for LendaBit. LendaBit will disclose the identity of the respective counterparty if a party requests this in written form and if the party proves that the disclosure is necessary for the enforcement of rights and/or protectable interests versus the user or versus third parties.
4.3 Users can look up their data in their personal area which is only accessible to them.
4.4 To make the closure of bitcoin secured USDT loan contracts as convenient as possible all loans are standardized and contain this minimum set of information:
- deal ID;
- the amount of lent USDT (loan amount);
- fee for the use of USDT expressed as a per annum (p.a.) interest rate of the outstanding principal loan amount (payable in USDT);
- the term of the USDT loan;
- the payment dates;
- the amount of bitcoins collateral;
- the conditions of closure;
- other information.
5. General conditions for the use of the marketplace
5.1 The marketplace is offered by LendaBit exclusively to private individuals. The marketplace can only be used by registered users on their own account. Borrowed USDT can be used for private and for business purposes or for freelance job activities.
5.2 Moreover, LendaBit only grants access to users who
- are contractually capable (have full legal capacity (competence) without restrictions);
- have stated the minimum required information about them during the registration;
Private individuals must further possess unlimited legal capacity to gain access to the marketplace.
6. Bitcoin and USDT account
6.1 LendaBit sets up an account for bitcoins for all users (bitcoin account'). The use of the marketplace as a borrower may require additional verification.
6.2 The bitcoin account is required for the administration of bitcoin secured USDT loans and is a prerequisite for the participation in the marketplace. The following points apply in respect to the bitcoin account:
- The funding of the account with bitcoins can be done by digital transfer to this account: the required bitcoin address is displayed to users in their personal area;
- As soon as users (borrowers) have placed an application (ask) for a USDT loan, their bitcoin account the respective amount will be debited ('reserved bitcoins'). If a USDT loan contract is closed properly and in terms, the reserved bitcoins are credited back to the bitcoin account of the borrower;
- Bitcoins that are not reserved bitcoins can be withdrawn by the user to another bitcoin address at any time;
- The user doesn't pay any fee for the bitcoin account;
- LendaBit will not take possession or ownership of the bitcoins of its users.
6.3 LendaBit sets up an account for USDT for all users (‘USDT account'). The use of the marketplace as a lender may require additional verification.
6.4 The USDT account is required for the administration of bitcoin secured USDT loans and is a prerequisite for the participation in the marketplace. The following points apply in respect to the USDT account:
- The funding of the account with USDT can be done by digital transfer to this account: the required USDT address is displayed to users in their personal section;
- As soon as users (lenders) have placed a bid to a bitcoin secured USDT loan, their USDT account the respective amount will be debited ('reserved USDT') and transferred to the borrower USDT account after the loan contract is concluded. The redemption of a loan is made by crediting to the USDT account of the lender;
- USDTs that are not lent and are not reserved can be withdrawn by the user to another USDT address at any time.
- The user doesn't pay any fee for the USDT account.
- LendaBit will not take possession or ownership of the USDT or bitcoins of its users except cases mentioned in article 15.
II. Conditions for borrowers
7. Loan amount
The amount of USDTs that a borrower can borrow is limited – depending on the amount and current evaluation of collateral – bitcoins. LendaBit also has a right to limit the loan amount due to its AML policy. The USDT loan amount can consist of whole USDTs or can have decimals with a denomination of 0.01. The current minimum loan amount and the currently available denomination is available at Loan terms and benchmarks
8. Borrowing of USDTs
8.1 Users apply for a publication of their Loan requests on the LendaBit as borrowers.
8.2 With the publication of the loan request on the marketplace the user as a borrower asks other users for a bid and the Loan request. There are three ways to create a loan deal for the borrower:
- to make Loan request at Loan Pool sub-page (where loan offers are made by the LendaBit automatically);
- to create it’s own Loan request (with self-made terms);
- to accept other’s LendaBit client Loan offer.
Thereby information about the borrower like the rating, history etc. and anonymous information about financial circumstances are published.
8.3 The borrower is responsible for the published content and is bound to not publish or make available any illegal or immoral content, to allude to such content or link to such content. If LendaBit learns about a breach of this rule, the content will be removed.
8.4 The contract for a bitcoin secured USDT loan between the borrower and the lender(s) concludes after a) the lender accepts the bid (loan request) for the whole amount asked or b) the lender accepts the bid (loan request) partly and the borrower confirms such amount.
8.5 The minimum amount for a USDTs loan can be viewed at Loan terms and benchmarks.
8.6 With the concluding of a bitcoin secured USDT loan contract LendaBit is entitled to crediting the borrower account in USDT from the lender’s account. Also LendaBit is entitled for an origination fee according to current terms. The current origination fee values can be viewed at Loan terms and benchmarks.
7. The current status of a loan request as well as already funded loans and other needed data can be viewed at personal area.
9. Repayment of a USDT loan
9.1 When a borrower's loan request was funded a payment schedule may be displayed at personal area if such schedule is applied according to the terms as agreed between the borrower and the lender(s). Borrowers ensure that their USDT account is sufficiently funded at repayment dates. LendaBit automatically transacts repayments from the borrower's account and credits the payment to the lender(s). LendaBit has the right to disclose the identity of the borrower to lenders if collection efforts should not be successful.
9.2 If a borrower does not repay his loan, or does not repay as scheduled in his payment plan, or if he is overdue for an installment, or repays partially for more than 1(one) day, the ‘foreclosure’ takes place. It means that the loan contract terminates by means of ‘foreclosure’. It means that the loan contract terminates by means of crediting the lender’s account with the all the amount of reserved bitcoins regardless of the outstanding balance.
9.3 No further action or liabilities under the specific loan contract may take place after such ‘foreclosure’.
III. Conditions for lenders
10. Lending of USDTs
10.1 The user as a lender can bid for a loan contract at Loan Pool. The lent USDTs have to be free of third-party rights. There are three ways to create a loan offer for the lender:
- to make Loan offer at Loan Pool sub-page (where loan offers/requests are made by the LendaBit automatically);
- to create it’s own Loan offer (with self-made terms);
- to accept other’s LendaBit client Loan request.
10.2 For accept a Loan request or to make a Loan offer the USDT account of the lender needs to be sufficiently funded with USDTs.
11. Processing of the repayment
11.1 LendaBit processes the repayment of the loan, the interest payments and possible compensation payments by order and power of authority of the lender users.
11.2 The administration of the loan is exclusively done by LendaBit. This means that lenders will not contact borrowers for the purpose of collection and will not have repayments made to themselves directly. This renunciation is revocable by the user only for important reasons.
11.3 The repayment of loans is conducted by debiting the USDT account of the borrower and directly crediting the USDT account of the lender.
11.4 In the case of partial repayments the received USDTs will be allocated to the principal loan amount first and then to interest payments.
11.5 If a borrower does not repay his loan, or does not repay as scheduled in his payment plan, or if he is overdue for an installment, or repays partially for more than 1(one) day, the ‘foreclosure’ takes place. It means that the loan contract terminates by means of ‘foreclosure’. It means that the loan contract terminates by means of crediting the lender’s account with the all the amount of reserved bitcoins regardless of the outstanding balance.
11.6 No further action or liabilities under the specific loan contract may take place after such ‘foreclosure’.
12. Rates and Fees
LendaBit will charge it’s clients for the use of LendaBit only in cryptocurrency by means of debiting the client’s accounts in Bitcoin/USDT. The amount of fees and types of fees applicable is set and calculated according to the rates & fees section on the LendaBit sub-page Loan terms and benchmarks.
13. Notification in case of defaulted payments
It is the borrower’s liability to check in the account whether a payment was successful or default.
IV. Technical framework
14.1 The marketplace is made available under the current state of technology. The use of the marketplace assumes that users have access to technical means that are necessary to access the marketplace (a computer, an internet connection etc.). LendaBit has the right to further develop the service environment constantly.
14.2 LendaBit only submits data within the personal section of the marketplace by an encrypted connection but has no influence on the transfer of data via the internet itself. LendaBit secures its systems against unauthorized access to secured data. An absolute protection against attacks by hackers however is not possible at the current state of technology and LendaBit does not liable if such happens.
14.3 LendaBit strives to make the marketplace accessible at any time within technological and economical reason. However, it is not always possible and you agree with that. Especially maintenance, security and capacity reasons as well as events that are beyond the control of LendaBit (disruptions of public communication networks, power outages or similar incidents) can lead to short term disruptions or to a temporary shutdown of the marketplace. LendaBit does not assume any liability for circumstances that are beyond the control of LendaBit. The access to the marketplace also depends on the technological equipment of the user and the data transmission through the internet by third parties.
14.4 LendaBit provides its services based on the current technical status of the internet and the current technological, legal and commercial surrounding conditions for its use. LendaBit is not obligated to increase the scope of its services, even if this was possible due to technological developments of the internet.
14.5 LendaBit reserves the right to change the services offered on the marketplace.
15. Compensation, fees
15.1 The access and use of the LendaBit marketplace is charged according to terms are displayed at Loan terms and benchmarks.
15.2 The borrowers as well as lenders authorize the LendaBit to debit their accounts in USDTs or in Bitcoins for charging LendaBit compensation and fees according to current rates and fees. This means that LendaBit has an irrevocable right to change the ownership of USDTs and/or Bitcoins which are stored on customers account to its own favour when any compensation or fee to the LendaBit is applied.
V. Privacy, contract termination, liability
17. Duration, cancellation
17.2 The cancellation by the user has to be completed in written form and needs to be addressed to LendaBit via email to [email protected]. The cancellation by LendaBit is made in written form and needs to be addressed to the Email submitted during the registration.
17.3 If the user is a borrower, such a cancellation only becomes valid the earliest after all loans are repaid including interest.
17.4 If the user is a lender, such a cancellation only becomes valid the earliest when the loans granted by this user are completely repaid which is at maturity.
17.5 In case of a cancellation LendaBit can exclude the user from concluding new loan contracts immediately, so that the use of the marketplace is restricted to the processing of already existing loans.
17.6 The right to cancellation due to important reasons remains untouched by the previous regulations.
17.7 After the cancellation becomes effective LendaBit will delete data about contracts five years later.
18. Liability limitation regarding the use of the marketplace
18.1 LendaBit is not liable for the risk that a borrower does not repay principal and interest or in case of a third party fraud.
18.2 LendaBit does not consult or advise lenders in the decision to grant loans. It is solely the lender's decision if and at to which amount grants loans via the marketplace.
18.3 LendaBit is not liable for any tax duties of customers.
18.4 Other Liability issues are mentioned in "Disclaimer and Consent".
VI. Other conditions
19. Final clause
19.1 Should a regulation from these terms be ineffective or should it become ineffective, the effectiveness of the remaining regulations remains unaffected. In the course of a contract adjustment LendaBit will replace the ineffective rule with an effective rule that comes economically closest to the ineffective rule in a legal way.