Loan F.A.Q.

Frequently asked questions

Updated over a week ago

How crypto-backed loan works?

The crypto-backed loan works similar to regular loan with collateral, but in this case, as collateral you use crypto. Crypto investors like any other investors buy various cryptocurrencies and wait for the market price to jump up. But, in this case, their investments are "frozen" in the crypto. For instance, you as an investor buy BTC for 10k EUR. This 10K is frozen until you sell BTC (perhaps after the price grows up).

This is the exact moment when crypto loans prove to be very helpful. The investor can borrow a part of the market crypto value of the crypto, use it for any purpose, and afterward pay back the loan and get back the exact crypto amount. Eventually, it is the same result as with the classic investment, but you as an investor are able to use the value of your crypto funds.

YouHodler provides their users with an option to get a loan using crypto or stablecoins assets as collateral. In return, the user instantly receives an agreed loan amount in USD, EUR, GBP, CHF, BTC, or Stablecoins. After repaying the loan, the user gets the collateral back, even if it has increased in value.

To explore more please follow this guide.

How can I get a loan?

To get a loan, go to the Loans page and click the Create new loan button. There you will find the loan calculator. All you need is to choose the Crypto you want to use as Collateral, the desired Loan Amount in fiat or cryptocurrency, and a comfortable Loan Tariff (LTV). You can see how much crypto you need to deposit to get a loan in the Crypto Collateral field right after you filled the Loan Amount field.

After you fill out the loan parameters, review the Terms of Service, and toggle on the switcher. Also, you can set a desired Take Profit level for your loan using the Set Take Profit feature. Once you're ready, click on the GET LOAN button. Your borrowed funds will appear in the Wallet section of your account. You can watch your loans in the Loans section of your account.

How can I repay my loan?

YouHodler provides several options to repay your loan using Crypto, Bank Wire, Apple Pay, AdvCash (incl. Credit Card), From your wallet and Close now feature.

Can I request a custom loan tariff?

Yes, you can request a custom loan tariff. To do so, you need to contact customer service via online chat or by sending an email to [email protected].

Why my loan is not opening?

If the collateral amount (and therefore the loan amount) is relatively big (usually, more than $100,000 equivalent), the loan can be subject to manual approval by the Team. In that case you can reach the customer service via online chat or by sending an email to [email protected], to check the loan status, or cancel the loan request and simply split the loan in two with smaller amount.

What is PDL?

PDL stands for Price Down Limit. This means, when the price drops below the “price down limit” (PDL) level, YouHodler has the right to sell the loan collateral and close the loan. Typically represented as two values: the price of crypto and the change in % from the initial crypto collateral price, e.g. 10,000 USD or - 15%.

Can I extend PDL on my loan?

Yes, it is possible. The platform analyzes the current market situation and if the circumstances allow, provides with the option to add more cryptocurrency to the collateral to change the price down limit (PDL) of the loan.

If the loan tariff and market conditions allow, the Extend PDL button will appear next to the loan in the Loans section. You need to press the Extend PDL button, to see new loan parameters. After that, you can choose the amount of collateral to add to the current loan. After all the desired parameters are set, press the Extend PDL button.

What is LTV?

LTV stands for Loan-To-Value ratio. The amount of fiat funds that you can receive in exchange for your cryptocurrency used as collateral for a crypto-backed loan. This is typically represented in percentages. E.g. 80% LTV means clients borrow 80% of the crypto collateral’s value.

Can I increase LTV?

Yes, it is possible. YouHodler's platform analyzes the current market situation and, if the circumstances allow, provides our users with the option to get more fiat from already opened loans, without the need of increasing the collateral amount.

If the loan tariff and market conditions allow, the Increase LTV (Get more) button will appear on the loan panel. The user needs to press the Increase LTV (Get more) button to see new parameters for the loan. After all the desired parameters are set, press the Get more cash button .

How much crypto do I need to take X loan on your platform?

It is possible to borrow only a part of the collateral value. The part of the collateral value represents by the LTV level of the particular loan tariff and is typically represented in percentages. E.g. 80% LTV means clients borrow 80% of the crypto collateral’s value. Future loan parameters, including LTV, can be checked here.

What are the minimum and maximum amounts to start a loan?

The minimum loan amount is 100 USD equivalent. There is no max cap for the loan. To get a custom loan tariff, you need to contact customer service via online chat or by sending an email to [email protected].

What happens if I don't repay the loan?

For Loans that are created after 05.09.2022 max loan duration is 364 days.

Once this term passed, the loan will be closed automatically. If the loan is closed without repayment, all borrowed funds will be kept by the customer.

Turbocharge loans are closed right after their term expires.

What is a loan fee and how it is calculated?

The fee is calculated in % from the loan borrowed amount (not from the overdraft amount) and in the loan borrowed currency. The actual fees are available on the loan form inside the platform. The loan commission is collected after 24 hours from the moment of opening the loan and then daily at the same time. The loan fee is shown on the loan opening form and can be viewed in the loan detailed view after opening the loan as well.

There are 2 ways the loan fee can be paid:

  1. From the wallet. In that case, the fee is collected from the client’s wallet (a borrowed currency of the loan) if you have enough balance on it.

  2. Add it to the loan repayment. If the client doesn't have enough balance in his wallet (a borrowed currency of the loan), the fee will be added to the loan debt (repayment amount). But in this case, the fee is higher.

Where can I find loan detailed closing/opening numbers?

After taking a loan, the client will be redirected to the Loans page where his loan appears. The following information is displayed on the Loan widget:

  • Collateral amount. This is the amount of your crypto reserved as collateral;

  • Loan-to-value. This tariff information describes which part of your collateral value was sent to you as cash;

  • Loan amount. This is the actual amount of funds you get on your fiat, stablecoins or crypto wallet after getting an actual loan;

  • Fee accrual in <time>. The time that will pass until to the next payment of the fee.

  • TP level. The price of the crypto collateral where a crypto-backed loan or will be closed automatically by using collateral funds to repay the loan and principal;

  • Current collateral price level. The current price of your collateral coin and the difference from the initial price level in percent;

  • MC level. The same Price down limit;

  • Price down limit. At this level, your loan will forcibly be closed. You will get an email and SMS notifications once the price goes down by half of this gap;

  • Daily fee. The fee for the using the loan per day;

  • Total fee. The whole amount of daily since the Loan was opened. This sum includes a fee that is charged from the wallet and which is added to the repayment amount also. The number in brackets represents the number of days passed since the Loan was opened;

  • Borrowed. The amount of borrowed funds;

  • Opened. The date and time of the creation of the loan;

  • Repay until. The date of the last day of the loan (364 days maximum);

  • Actual loan balance. This is the total debt you need to repay to get your crypto back;

  • Loan ID number. Unique loan identifier. You may be asked for this number by our support during the troubleshooting process;

  • Agreement. By clicking this, you will download your personal loan agreement in PDF (also it is sent to your email right after taking a loan).

Where did the 5/7/3% difference between the PDL level and the LTV I took go?

The sum of PDL and LTV is always less than 100% for additional protection of the company from slippage during a sharp decline in crypto market price.

Can you reopen my closed loan?

If the loan was closed it can’t be reopened, since the loan collateral will be sold in order to cover the loan repayment to avoid the financial losses of the company.

Can I earn reward on crypto used as collateral for the loan?

No, crypto collateral does not earn reward. However, the borrowed funds (stablecoins or crypto) earn reward when they are kept in your YouHodler account.

What is the loan term?

The loan can be opened for a maximum term of 364 days. On the loan widget, there is a field Repay until, which shows the date of the last day of the loan.

Can I extend the loan term?

The maximum loan duration is 364 days. If this term passed without the loan repayment, the loan will be closed automatically. This term can’t be extended.

What are the loan closing options?

YouHodler provides the following options to repay a loan using crypto, fiat, or stablecoins:

  • Crypto - repay your loan in any crypto using the Convert feature inside the platform;

  • Bank Wire - repay your using a bank wire (Please be advised that to unlock the bank wire option, you need to verify your address. The process could take up to 12 hours);

  • Apple Pay - repay your loan with a fast Apple pay deposit option and the Convert feature inside the platform;

  • AdvCash (incl. Credit Card) - repay your loan using AdvCash with a debit/credit card. (Please be advised that the Bank Card verification could take up to 12 hours);

  • From your wallet - repay your loan using fiat or stablecoins from your wallet;

  • Close now - repay your loan using your collateral's market value.

Can I use fiat (EUR/USD) as collateral?

Yes, fiat currency (USD, EUR, GBP, CHF) can be used to borrow crypto such as BTC, ETH, ADA, etc.

Can I use stablecoins as collateral?

Yes, USDT can be used to borrow crypto such as BTC, ETH, ADA, etc.

What are the loan borrowed currency options?

Using crypto as collateral, the client can borrow in stablecoins (USDT) or fiat (USD, EUR, GBP, CHF).

Using fiat or stablecoins as collateral, the client can borrow in BTC, ETH, ADA, and DOT.

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