Frequently Asked Questions

Why use the LendaBit.com platform?
The platform has been designed to remove all unnecessary steps from the lending process, thus more attractive terms and conditions to both lenders and borrowers. The customer interface and data processing behind it are structured so as to support prompt and secure transactions. Normally, making a loan or lending should require just a few clicks.
By using the LendaBit.com services, you unlock the value of your cryptocurrencies in an easy and straightforward process that benefits every platform participant.
How does a LendaBit.com loan work?
LendaBit.com connects lenders and borrowers by matching their financial demands on our platform and helping them strike deals. Prospective borrowers and lenders place Loan Requests and Loan Offers and indicate the loan parameters they prefer: interest rate, term, loan amount, etc. Interest rate is fixed at a level that should be attractive for risk-free lending to both lenders and borrowers. All loans are secured by crypto collateral and the value of pledged collateral is closely maintained to ensure full risk coverage at all times. Collateral remains property of the borrower and is promptly returned upon loan repayment.
How are different Loan Wizard, Loan Offer, Loan Request and Loan Pool?
Loan Wizard makes access to crypto loans simpler, faster and trustworthy. Only 5 clicks — and you have your loan solution to cover your needs! Loan Offers are made by lenders who indicate details of their lending proposition like loan amount, loan term, loan cryptocurrency, interest rate, etc. The offers may be accepted by borrowers as soon as they provide sufficient crypto collateral. Loan Requests are made by borrowers who indicate details of their borrowing requirement like loan amount, loan term, loan cryptocurrency, interest rate, etc. The requests may be accepted by lenders who have provided sufficient deposit to make the loan. Loan Pool is a pool of standardized Loan Offers for quick access and search by borrowers. Once a qualified borrower accepts a Loan Offer, or a qualified lender accepts a Loan Request, the deal between them is struck and the loan is made.
Are LendaBit.com loans secured?
LendaBit.com loans are secured by crypto collateral provided by borrowers. The crypto collateral value is monitored on an ongoing basis to make sure the loan amount is covered by crypto collateral at all times. Borrowers are requested to add crypto to their collateral if its value decreases.
What is the interest rate on the loans?
Borrowers and lenders set interest rates on their own when they make Loan Requests and Loan Offers. The interest rate is the cost to pay on a loan for the borrower.
How is the interest on loans calculated?
Interest is calculated based on the formula: Daily Interest = (Loan Amount × Interest Rate) / 360, where 360 is used for the number of days in the year no matter what the actual number (365 or 366) is.
What is an LTV ratio?
Loan-To-Value (LTV) ratio is a percentage calculation that helps measure the ratio of a loan to the value of pledged collateral. In order to calculate the initial LTV ratio, it is necessary to sum up the amount of a loan and interest, then divide into the amount of pledged collateral and finally multiply by 100.
How quickly can the loan be made?
Lenders are ready to make loans as soon as they have registered on the platform and provided a deposit. Borrowers are ready to apply for loans as soon as they have registered on the platform and provided crypto collateral. Normally, this will require just a few clicks.
What are the minimum and maximum loan amounts?
The minimum and maximum loan amounts can be viewed at Loan Terms and Benchmarks and there you will find a complete and comprehensive list of all rates and fees.
What are the minimum and maximum lending periods?
The minimum and maximum lending periods are 1 day and 3 years accordingly.
In which cryptocurrencies are loans available?
Please visit Loan Terms and Benchmarks and there you will find a complete and comprehensive list of available loan cryptocurrencies. If you have interest in a specific currency, please advise us details at [email protected].
What is collateral?
Collateral is an asset(s) that a borrower pledges as security for loan repayment to a lender. Collateral is needed to protect the lender from various financial risks including, but not limited to, borrower’s failure to repay the loan, market volatility or default, among other things.
Can loans be made in another crypto, other than cryptocurrency of collateral?
At this point, we only offer crypto versus crypto loans that are high in demand. However, we will promptly respond to any emerging demand from the community of lenders and borrowers. If you are interested in specific crypto versus crypto loans, please advise us details at [email protected]
Are any fees charged by LendaBit.com?
LendaBit.com charges a system fee according to the applicable rates provided in Loan Terms and Benchmarks, payable by lenders and borrowers.
In which countries are LendaBit.com services available?
LendaBit.com P2P lending services are available around the globe to anyone who has access to our online platform. The list of restricted jurisdictions can be viewed here.
Where can we see the details of our loans?
You can view your loan details in section "ACTIVE DEALS" of your LendaBit.com account.
Which mobile devices and OSs does LendaBit.com support?
LendaBit.com operates through its website platform, and therefore can be easily accessed both on desktop and mobile devices.
What is Tether (USDT)?
Tether is a blockchain-based platform designed to facilitate the use of fiat currencies in a digital manner. Its native cryptocurrency (USDT) is a stablecoin issued on the Bitcoin blockchain through the Omni Layer protocol. It can be issued via the Omni Layer (OMNI), Ethereum (ETH20), EOS (EOS) or TRON (TRC20) protocols. LendaBit.com currently supports USDT (OMNI) only. It is pegged to traditional fiat currencies (1:1 ratio). It is globally used for lending/borrowing, storing and trading on crypto exchanges due to reliability, transparency, low transaction fees, speed and wide acceptance.
Is online lending secure?
Online P2P lending secured by crypto collateral ensures that there are always funds available to repay the lender.
Is my account protected against malicious attacks?
LendaBit.com provides a platform that enables secure P2P lending services that are most protected against malicious attacks. However, users should remember to make sure at all times that they remain on our platform, namely:
1) check that they have accessed our website that reads exactly lendabit.com;
2) check that they have received an email from our email address that reads exactly [email protected].
Please be cautious when clicking hyperlinks. Remember also that LendaBit.com will never ask you to provide your passwords via email.
Can crypto transactions be canceled?
Unfortunately, blockchain-based crypto transactions cannot be canceled or altered due to the nature of their protocols. Please double check all details including addresses before making payments.
How does LendaBit.com use lenders' and borrowers' data?
LendaBit.com keeps the lenders' and the borrowers' data, as well as the data of any individuals or businesses visiting our website, confidential, secure and private. The platform may use the collected information to improve our product proposition or customer service, or provide information and updates to our customers regarding our services.
Who can become a lender?
Any individual or entity willing to lend crypto to borrowers and earn interest.
Which lending options can I choose?
A lender can choose among several options:
1) Make an individual Loan Offer indicating loan amount, loan term, currency of the loan. The offer should be accepted by a qualified borrower and secured by crypto collateral to become a loan.
2) Include a Loan Offer into the Loan Pool indicating loan amount, loan term, currency of the loan, and wait until the offer is accepted by a qualified borrower.
3) Accept a Loan Request placed by a qualified borrower in the system. As soon as the request is accepted, the loan is made on the terms requested by the borrower.
How do I deposit and withdraw funds from the system?
Funds are deposited to a wallet address provided by us for your LendaBit.com account during your registration. You can withdraw funds to any wallet address of your choice in the specific currency of this wallet.
How do I obtain and operate with cryptocurrencies?
You can obtain cryptocurrencies for fiat using the services of our partners:
* kraken.com
* tether.to
* bittrex.com
* exmo.com
* remitano.com
or any other crypto exchange. You can then send cryptocurrencies from the wallet you set up with the exchange, to the LendaBit.com wallet address that we provide.
To convert back from crypto to fiat, you send cryptocurrencies from your LendaBit.com wallet address to your exchange wallet address, and can withdraw fiat after the exchange
How do I pay the system fee?
When a loan is made, the lender is charged a system fee on the loan amount according to the applicable rates specified in Loan Terms and Benchmarks.
How often will I receive interest?
The entire interest amount is received at the end of the loan term.
When can I withdraw interest and loan amount?
You can withdraw both interest and loan amount after the loan has been repaid.
How long does it take to receive the withdrawn funds?
Withdrawn funds will arrive within 24 hours from withdrawal request.
Where can I see my withdrawal information?
You can see all withdrawal information and other details of your loan in the Wallet tab of your LendaBit.com account.
What happens if the borrower fails to repay my loan?
If the borrower fails to repay, your loan will be repaid with the funds obtained from transfer of the borrower's collateral.
What do I receive if the borrower repays ahead of the loan term?
If the borrower prepays, the lender will receive the full interest amount for the entire loan period ꟷ same as if the loan was prepaid at maturity.
Who can be a borrower? What are borrower requirements?
Any individuals or entities willing to apply for a loan and pledge crypto as collateral can become borrowers. There are no upfront borrower requirements except for providing collateral. No credit checks are performed and no credit scores are assigned.
How and how quickly can I withdraw my loan?
As soon as the loan is made, the funds are available for withdrawal. You can withdraw cryptocurrencies to your wallet address using the services of one of our partners.
How often do I have to pay interest?
There are no regular interest payments. You will have to pay interest only once, at the end of the loan term.
How do I make my loan payment?
To repay the loan, deposit the required cryptocurrency amount (loan amount and interest) to your account wallet at LendaBit.com.
How do I convert cryptocurrencies to fiat, or obtain cryptocurrencies for repayment?
You can convert cryptocurrencies to fiat using the services of our partners:
* kraken.com
* tether.to
* bittrex.com
* exmo.com
* remitano.com
or any other exchange operating with cryptocurrencies. You can then withdraw fiat from the wallet you set up with the exchange, to any wallet you prefer.
To obtain cryptocurrencies for repayment, you can place fiat to your exchange wallet, convert the required amount, and transfer it to your LendaBit.com wallet address.
How do I deposit and withdraw funds from the system?
Funds are deposited to a wallet address provided by us for your LendaBit.com account during your registration. You can withdraw funds to any wallet address of your choice in the specific currency of this wallet.
How long does it take to receive the withdrawn funds?
Withdrawn cryptocurrencies will arrive within 24 hours from withdrawal request.
How do I pay the system fee?
When a loan is made, the borrower is charged a system fee on the loan amount according to the applicable rates specified in Loan Terms and Benchmarks.
Can I change the loan terms?
No, you cannot change the loan terms. Loan terms are agreed upon by the borrower and the lender before the loan is made and cannot be modified afterwards.
What happens if I fail to repay my loan?
Should you fail to repay the loan, collateral shall be transferred to the lender in full amount (excluding Collateral Transfer Fee).
Can I take out more than one loan at a time?
Yes, you can. Once you provide sufficient collateral, you can take out further loans.
Can I prepay the loan?
You can prepay. However, you will pay full interest amount for the entire loan term.
What is AML/KYC policy?
Anti-Money Laundering (AML) and Know Your Customer (KYC) Policies are designated to prevent and mitigate possible risks of us being involved in any kind of illegal activity, namely: money laundering, terrorist financing, drug and human trafficking, proliferation of weapons of mass destruction, corruption and bribery and to take action in case of any form of suspicious activity of our customers.
AML/KYC Policy covers the following matters:
-Compliance Officer;
-Risk Assessment;
-Identify Verification procedures;
-Monitoring Transactions.
Who is Compliance Officer?
The Compliance Officer is the person, duly authorized by us, whose duty is to ensure the effective implementation and enforcement of the AML/KYC Policy. It is the Compliance Officer's responsibility to supervise all aspects of our anti-money laundering and counter-terrorist financing.
What verification procedures should I follow?
Our identity verification procedure requires the customer during registration to provide us with such documents according to AML/KYC Policy:
a) Identity Document;
b) Proof of address;
c) “Selfie."
What is Identity Document?
Identity document is a valid, reliable and independent source document with the following information: full name, date of birth, customer's photo, identity document serial number and issue date. The customer is free to provide one of the following types of documents:
National ID card (both sides) or national passport;
International passport;
Driver license (both sides).
Please note that we accept documents as proof of your identity only if all the information in it is provided with Latin transliteration.
What does Proof of Address mean?
Proof of Address is a document confirming the customer's residence and contains full name, address and shall be issued not more than 3 months ago. You are free to provide one of the following documents:
Certified tenancy agreement or a bank statement;
Utility or electricity bill;
Tax return or council tax;
Other official document with current residence address and your full name.
Please note that we accept documents as proof of address only if all the information in it is provided with Latin transliteration.
What kind of Selfie should I do?
You should make a photo of yourself holding a sheet of paper with the inscription “LendaBit.com” and the current date. Your face and inscription should be clearly seen.
Will my personal data be safe and secure?
Yes, customer's identification information will be collected, stored and protected strictly in accordance with our Privacy Policy and related regulations.
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Why is collateral provided?
Collateral is provided to assure the lender that loans get repaid under any circumstances. This has its benefits for the borrower, too. If, for any reason, the borrower lacks funds to repay the loan, they may simply wait until their collateral is transferred, and their loan repaid.
How much collateral is required?
Generally, crypto collateral coverage should meet the Initial LTV ratio (50%), which is calculated by the formula: (Loan Amount + Interest)/Total Value of Collateral × 100. However, the Initial LTV ratio can be personally adjusted during loan arrangements. Additionally, you can make use of online P2P Calculator, which can be easily located on the main LendaBit.com webpage. It is a handy instrument for automated calculations, which gives concise visuals to help determine all necessary variables. For instance, you need a 1000 USDT loan for a period of 1 month. The collateral amount is being instantly calculated, namely 0.35412101 in BTC or 12.28206527 in ETH.
Which cryptocurrencies are acceptable as collateral?
BTC, ETH and USDT (OMNI).
Do I still own my collateral? Can I withdraw it?
The borrower still owns pledged crypto collateral. However, you can withdraw crypto collateral only after it is released upon the loan repayment.
What address do I send my crypto collateral to?
Crypto collateral is deposited to a wallet address provided by us for your LendaBit.com account during your registration.
How is my collateral stored for the duration of the loan?
At LendaBit.com, all cryptocurrency wallets support multi-signature functionality for ultra-safe and secure cold storage of pledged crypto collateral.
What happens if the market value of the collateral changes substantially?
If the collateral value rises, the borrower can withdraw the amount that exceeds the requirement. If the collateral value decreases, the borrower should add crypto to pledged collateral.
What is a Margin Call?
Margin Call is an automated notification generated by the system requesting the borrower to top up pledged crypto collateral. The notification is sent by the internal LendaBit.com messaging system and by email.
How am I notified of a Margin Call?
The notification will be sent by the internal LendaBit.com messaging system and by email.
How do I manage a Margin Call?
You can choose between these options:
1) Add crypto to collateral you pledged for the loan;
2) Repay the entire loan amount and thus release your crypto collateral.
What happens if the crypto collateral forks while it is tied up in a loan?
Forks will not affect loans unless the collateral value is substantially changed. If the collateral value decreases, the borrower will be requested to increase collateral.
What happens when my collateral is transferred?
Pledged collateral will be transferred in full amount to the lender's account, of which both the borrower and the lender will be notified. The lender can use these funds as loan repayment.