Your Interest Rate Is Variable
The interest rate is variable: it moves with market conditions and pool utilization. You'll always see the current rate before you confirm a loan.
No credit, no income docs
Your rate isn't based on a credit score or employment history. Your Bitcoin collateral is what backs the loan.
Interest Rate vs. APR
The APR is your yearly cost of borrowing over the 12-month term: the interest plus the one-time 2% origination fee. The fee is added to your loan balance, and interest accrues on that whole balance. Network fees and the conversion spread on bank payouts are separate and not part of the APR. Because it includes the fee, the APR is higher than the interest rate: at a 2.67% interest rate, the APR is 4.72%.
The calculator, your loan application, and your dashboard use the two terms the same way. The interest rate is the variable rate your balance accrues at. The APR is the yearly cost of a new loan: the interest plus the origination fee.
Interest Accrues on Your Balance
Interest accrues on your outstanding balance over time — there's no fixed monthly payment. Your balance starts as your loan amount plus the financed origination fee: $40,800 for a $40,000 loan, which accrues about $90.78 a month at a 2.67% interest rate. Because interest is charged on what you currently owe, paying down your balance reduces the interest you accrue from that point forward.
Loan Overview
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No prepayment penalty
You can repay anytime with zero penalty. The sooner you repay, the less total interest you pay — partial repayments help too.
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