Bit2Me Loan - Frequently Asked Questions

If you are considering using Bit2Me Loan, this frequently asked questions section offers you the essential information you need. Here you will find details about cryptocurrencies accepted as collateral, applicable interest rates, and discounts available through Space Center to optimize your loan.

Content Index:

• In which cryptocurrencies can I get a loan and which ones are accepted as collateral?
• What is the applicable interest in Bit2Me Loan?
• How can I get a discount on the applicable interest?
• What is the minimum and maximum amount I can borrow?
• Is it possible to have more than one cryptocurrency loan at a time?
• What is the maturity period in Bit2Me Loan?
• How long does it take for loan approval and receipt?
• Do I remain the owner of the cryptocurrencies used as collateral?
• Do I have to pay taxes for having a cryptocurrency loan?
• Can the interest rate vary during the life of a loan or is it fixed?

In which cryptocurrencies can I get a loan and which ones are accepted as collateral?

When requesting a loan in Bit2Me Loan, you can choose in which of the following stablecoins you want to receive the funds: EURC, USDC, EURR (StablR Euro), and USDR (StablR USD).

As collateral for you to receive the loan, Bit2Me accepts the following cryptocurrencies: Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP).

Each of these cryptocurrencies you provide as collateral has a Loan-to-Value (LTV) of 50%. This means that, for example, if you deposit 1 BTC as collateral, you can request a loan for an equivalent value of 50% of the current value of that BTC.

What is the applicable interest in Bit2Me Loan?

The applicable interest for Bit2Me Loan is 17.50% for EURC, 17.00% for EURR, 15.50% for USDC, and 15.00% for USDR. However, there are bonuses based on the user level held within Space Center:

How can I get a discount on the applicable interest?

By acquiring the Bit2Me utility token (B2M) and increasing your level within Space Center. Space Center is the levels and benefits system for Bit2Me users and B2M holders. Complete missions, receive points, and get greater benefits. You can buy B2M here.

What is the minimum and maximum amount I can borrow?

The minimum amount is set at 100 units of stablecoin, and the maximum at 1 million units.

For higher operations, you can contact our team of specialists through our website by clicking here.

Is it possible to have more than one cryptocurrency loan at a time?

Yes, provided that the necessary cryptocurrencies are available to collateralize as a guarantee. However, Bit2Me recommends not using all available cryptocurrencies as collateral.

What is the maturity period in Bit2Me Loan?

Bit2Me Loan is flexible, adapting to all needs, selecting the guarantee, the loan denomination, and with no fixed term. Repay it whenever and however you want.

How long does it take for loan approval and receipt?

Approval is instant and available immediately due to over-collateralization.

Do I remain the owner of the cryptocurrencies used as collateral?

Yes, in no case do you lose ownership of the cryptocurrencies. Except in the exception of the liquidation of the operation. The liquidation of an operation or the "LTV price execution" will be set by default at 85% of the principal value. That is, when the ratio between the principal and the collateral reaches 85% (principal value 85 over a collateral value of 100). Or in other words, when the collateral reaches the point of representing 117.65% of the borrowed principal value.

Liquidation will be associated with a liquidation fee (derived from the management and sale of the collateral at the current market price): 2% of the outstanding principal with a minimum of 100€ in the equivalent value of the crypto deposited as collateral.

Do I have to pay taxes for having a cryptocurrency loan?

Granting a loan with cryptocurrencies or using them as collateral may have tax implications depending on the regulations of each country. Bit2Me does not offer tax advice; each user must analyze their situation and, if desired, can rely on the Tax service.

Can the interest rate vary during the life of a loan or is it fixed?

The final interest rate of your loan is dynamic and can vary depending on your level in Space Center.

The interest you pay is directly linked to the bonuses offered by your user level. Therefore, if during the term of the loan your level in Space Center changes (either because you level up or down), the system will recalculate daily the remaining interest applying the new bonus percentage corresponding to your current status.