- 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
”INITIUM LIMITED”, C.Reg. No: 2745042, address: Fl. 2A1-A7, Pahsang Industrial Bldg., 16 Sun On Str., Tuen Mun, N.T, HONG KONG (hereinafter also referred to as “we” or “LendaBit.com”) is the provider responsible for this website and its subpages (hereinafter also referred to as “LendaBit.com”). LendaBit.com uses this website to mediate loans between lenders and borrowers.
1.4 LendaBit.com does not offer any advisory or consulting services nor in investment or in taxation or legal issues or escrow services. LendaBit.com does not provide financial services. LendaBit.com does not provide any ICO (Initial Coin Offering) or related services, does not engage in any virtual (crypto) coin mining, does not trade (exchange) any virtual (crypto) coins. LendaBit.com is only a website (lending platform) to mediate loans between lenders and borrowers. This means that it is in user’s own responsibility if a crypto-secured loan is a suitable contract for them subject to their personal, general and financial circumstances.
2.2 Before users can get or fund crypto-secured loans they need to fulfil registration. To complete the registration process and get verified, the client has to comply with identity verification rules according to AML/KYC Policy and state the following information:
- First Name and Last Name;
- Date of birth;
- Phone number;
- ZIP/Postal code;
- ID document type and number, issue and expiration date, country of issue;
Our identity verification procedure requires the customer during the registration to provide us with:
- not expired ID document (e.g., national ID or international passport or driver's license) – first page with photo.
- proof of address (e.g., a certified tenancy agreement or a bank statement with address and full name mentioned (issued within the last 3 months) or a utility or electricity bill with address and full name mentioned (issued within the last 3 months) or tax return or council tax with address and full name mentioned (issued within the last 3 months) or other official document with current residential address and full name).
The user should provide us with the scan copies of the abovementioned documents AND a “selfie” photo of him(her)self holding a sheet of paper with the inscription “LendaBit.com” and the current date. Once the registration and identity verification procedure are finalized and confirmed by us, the user can fully use the LendaBit.com services.
LendaBit.com has a right to reject any person on registering on the website and using related services according to AML/KYC Policy. LendaBit.com may from time to time temporarily reject customers from some countries/territories. This can be because of legal issues or AML Policy 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.com 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.com.
2.4 During the registration users are required to state correct and complete information about themselves. This data is stored in their personal area which is only accessible by the user.
2.5 Users inform LendaBit.com 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 Care Team, so this can be sorted out for users.
3. Functioning and use of the lending platform
3.1 Users can act as a borrower and/or as a lender on P2P lending platform LendaBit.com. Borrowers users can use borrowed cryptocurrencies and lenders users can lend cryptocurrencies to borrowers and thereby earn an interest income. All crypto loans on LendaBit.com must be secured by crypto collateral.
3.2 LendaBit.com runs the platform to broker the conclusion of crypto-secured loan contracts. In addition to that LendaBit.com offers users additional paid services that are related to such different roles of LendaBit.com:
- as a provider of the technical platform of the network;
- as a service provider for the conclusion and administration of crypto-secured 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.com ("user ID"), by which borrowers and lenders are identifiable for LendaBit.com. LendaBit.com 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 crypto-secured loan contracts as convenient as possible, all loans are standardized and contain this minimum set of information:
- deal ID;
- the amount of lent cryptocurrency (loan amount);
- fee for the use of cryptocurrencies expressed as a per annum (p.a.) interest rate of the outstanding principal loan amount (payable in cryptocurrency);
- the term of the loan;
- the payment dates;
- the amount of crypto collateral;
- the conditions of closure;
- other information.
4.5 The maximum permissible LTV variation is 3% whereby the borrower can take a loan provided that the wallet balance has already been replenished.
5. General conditions for the use of the lending platform
5.1 Lending and borrowing are offered by LendaBit.com exclusively to private individuals and entities. The P2P lending platform can only be used by registered users on their own account. Borrowed cryptocurrencies can be used for private and for business purposes or for freelance job activities.
5.2 Moreover, LendaBit.com 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 platform.
6. Cryptocurrency account
6.1 LendaBit.com sets up a separate cryptocurrency account for all users ("cryptocurrency account"). The use of the platform as a borrower may require additional verification.
6.2 The cryptocurrency account is required for the administration of crypto-secured loans and is a prerequisite for the participation (lending and/or borrowing) in the lending platform. The following points apply in respect to the cryptocurrency account:
- The funding of the cryptocurrency account can be done by digital transfer to this account: the required cryptocurrency address is displayed to users in their personal area;
- As soon as users (borrowers) have placed an application (ask) for a loan, their cryptocurrency account will be debited the respective amount (“reserved cryptocurrency”). If a loan contract is closed properly and in terms, the reserved cryptocurrencies are credited back to the cryptocurrency account of the borrower;
- Cryptocurrencies that are not reserved cryptocurrencies can be withdrawn by the user to another cryptocurrency address at any time;
- The user does not pay any fee for the cryptocurrency account;
- LendaBit.com will not take possession or ownership of the cryptocurrencies of its users.
6.3 LendaBit.com sets up an account for cryptocurrencies for all users ("cryptocurrency account"). The use of the platform as a lender may require additional verification.
6.4 The cryptocurrency account is required for the administration of crypto-secured loans and is a prerequisite for the participation in the lending platform. The following points apply in respect to the cryptocurrency account:
- The funding of the account with cryptocurrencies can be done by digital transfer to this account: the required cryptocurrency address is displayed to users in their personal area;
- As soon as users (lenders) have placed a bid to a crypto-secured loan,their cryptocurrency account will be debited the respective amount (“reserved cryptocurrency”) and transferred to the borrower’s cryptocurrency account after the loan contract is concluded. The redemption of a loan is made by crediting to the cryptocurrency account of the lender;
- Cryptocurrencies that are not lent and are not reserved can be withdrawn by the user to another cryptocurrency address at any time.
- The user does not pay any fee for the cryptocurrency account.
- LendaBit.com will not take possession or ownership of the cryptocurrencies of its users except cases mentioned in article 15.
II. CONDITIONS FOR BORROWERS
7. Loan amount
The amount of cryptocurrencies that a borrower can borrow is limited – depending on the amount and current evaluation of crypto collateral. LendaBit.com also has a right to limit the loan amount due to AML/KYC Policy. The cryptocurrency loan amount can consist of whole cryptocurrencies or can have decimals with a denomination of 0.01. The current minimum loan amount and the currently available denomination are available at Loan Terms and Benchmarks
8. Borrowing of cryptocurrencies
8.1 Users apply for a publication of their Loan Requests on LendaBit.com as borrowers.
8.2 With the publication of the Loan Request on the P2P lending platform, 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 LendaBit.com automatically);
- to create his/her own Loan Request (with self-made terms);
- to accept other LendaBit.com client's 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.com learns about a breach of this rule, the content will be removed.
8.4 The contract for a crypto-secured loan between the borrower and the lender(s) is concluded 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 crypto-secured loan can be viewed at Loan Terms and Benchmarks.
8.6 With the concluding of a crypto-secured loan contract LendaBit.com is entitled to crediting the borrower’s account in cryptocurrency from the lender’s account. Also LendaBit.com 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 crypto-secured 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 cryptocurrency account is sufficiently funded at repayment dates. LendaBit.com automatically transacts repayments from the borrower's account and credits the payment to the lender(s). LendaBit.com 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/her loan, or does not repay as scheduled in his/her payment plan, or if he/she is overdue for an installment, or repays partially for more than 1 (one) day, the "foreclosure" takes place. It means that the loan contract shall stand terminated 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 cryptocurrencies 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 cryptocurrencies
10.1 The user as a lender can bid for a loan contract at Loan Pool. The lent cryptocurrencies have to be free of third party rights. There are three ways to create a Loan Offer for the lender:
- to make a Loan Offer at Loan Pool sub-page (where Loan Offers/Requests are made by LendaBit.com automatically);
- to create own Loan Offer (with self-made terms);
- to accept other LendaBit.com client's Loan Request.
10.2 For accept a Loan Request or to make a Loan Offer, the cryptocurrency account of the lender needs to be sufficiently funded with cryptocurrency(ies).
11. Processing of the repayment
11.1 LendaBit.com processes the repayment of the loan, the interest payments and possible compensation payments by order and power of authority of the lenders users.
11.2 The administration of the loan is exclusively done by LendaBit.com. 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 cryptocurrency account of the borrower and directly crediting the cryptocurrency account of the lender.
11.4 In the case of partial repayments the received cryptocurrencies will be allocated to the principal loan amount first and then to interest payments.
11.5 If a borrower does not repay his/her loan, or does not repay as scheduled in his/her payment plan, or if he/she is overdue for an installment, or repays partially for more than 1 (one) day, the "foreclosure" takes place. It means that the loan contract shall stand terminated 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 cryptocurrencies 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.com will charge its clients for the use of LendaBit.com only in cryptocurrency by means of debiting the clients' accounts. The amount of fees and types of fees applicable are set and calculated according to the Rates and Fees section on the LendaBit.com 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 lending platform is made available under the current state of technology. The use of the lending platform assumes that users have access to technical means that are necessary to access the platform (a computer, internet connection etc.). LendaBit.com has the right to further develop the service environment constantly.
14.2 LendaBit.com only submits data within the personal area of the platform by an encrypted connection but has no influence on the transfer of data via the internet itself. LendaBit.com 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.com is not liable if such happens.
14.3 LendaBit.com strives to make the lending platform accessible at any time within technological and economic reasons. 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.com (disruptions of public communication networks, power outages or similar incidents) can lead to short term disruptions or to a temporary shutdown of the platform. LendaBit.com does not assume any liability for circumstances that are beyond the control of LendaBit.com. The access to the platform also depends on the technological equipment of the user and the data transmission through the internet by third parties.
14.4 LendaBit.com 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.com 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.com reserves the right to change the services offered on the platform.
15. Compensation, fees
15.1 The access and use of the LendaBit.com platform is charged according to terms displayed at Loan Terms and Benchmarks.
15.2 The borrowers as well as lenders authorize LendaBit.com to debit their accounts in cryptocurrencies for charging LendaBit.com compensation and fees according to current rates and fees. This means that LendaBit.com has an irrevocable right to change the ownership of cryptocurrencies which are stored on clients’ accounts to its own favor when any compensation or fee to the LendaBit.com is applied.
V. PRIVACY, CONTRACT TERMINATION, LIABILITY
17. Duration, cancelation
17.2 The cancelation by the user has to be completed in written form and needs to be addressed to LendaBit.com via email to [email protected]. The cancelation by LendaBit.com is made in written form and needs to be addressed to the email address submitted during the registration.
17.3 If the user is a borrower, such a cancelation only becomes valid the earliest after all loans are repaid including interest.
17.4 If the user is a lender, such a cancelation 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 cancelation, LendaBit.com can exclude the user from concluding new loan contracts immediately, so that the use of the platform is restricted to the processing of already existing loans.
17.6 The right to cancelation due to important reasons remains untouched by the previous regulations.
17.7 After the cancelation becomes effective, LendaBit.com will delete data about contracts five years later.
18. Liability limitation regarding the use of the platform
18.1 LendaBit.com 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.com 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 grant loans via the lending platform.
18.3 LendaBit.com 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