Welcome to BitMerchants’ Borrow Terms. These terms govern your use of our borrowing services. By accessing or using our borrowing services, you agree to these terms. Please read them carefully.

1. Eligibility

To use our borrowing services, you must:

• Be at least 18 years old.
• Have a verified BitMerchants account.
• Comply with our Know Your Customer (KYC) and Anti-Money Laundering (AML) procedures.

2. Crypto Credit Lines

BitMerchants offers crypto-backed credit lines, allowing you to borrow fiat or stablecoins by using your cryptocurrency as collateral.

3. Loan Terms

• Loan-to-Value (LTV) Ratio: The amount you can borrow depends on the value of your collateral. The LTV ratio may vary based on the cryptocurrency used as collateral. For example:

  • Bitcoin (BTC): 50% LTV
  • Ethereum (ETH): 50% LTV
  • Other cryptocurrencies may have different LTV ratios as specified on our platform.

• Interest Rates: Interest rates are variable and depend on market conditions and the specific terms of your loan. Rates will be clearly specified before you agree to the loan.

• Loan Duration: Loans are open-ended with no fixed repayment date. You can repay at any time, but interest will accrue daily.

• Repayment: You can repay your loan in part or in full at any time. Interest is calculated on a daily basis and added to your outstanding balance.

4. Collateral Management

• Collateral Value Monitoring: The value of your collateral is monitored in real-time. If the value of your collateral falls below the required LTV threshold, you may receive a margin call.

• Margin Calls: If a margin call is issued, you will be required to either add more collateral or partially repay the loan to restore the required LTV ratio. Failure to respond to a margin call may result in liquidation of your collateral.

• Collateral Liquidation: In the event of significant market downturns or if you fail to meet margin calls, BitMerchants reserves the right to liquidate your collateral to cover the loan. Liquidation will be conducted at market rates, and any remaining balance will be returned to you.

5. Fees and Charges

• Origination Fees: BitMerchants may charge a loan origination fee, which will be disclosed at the time of the loan agreement.
• Late Payment Fees: While our loans are open-ended, any specific late fees or penalties will be clearly outlined if applicable.
• Other Fees: Any additional fees, such as transaction or processing fees, will be transparently disclosed before you agree to the loan.

6. Use of Borrowed Funds

Funds borrowed from BitMerchants can be used for a variety of purposes, including but not limited to:

• Personal expenses.
• Business investments.
• Purchasing additional cryptocurrencies or other assets.
• Paying for goods and services.

7. Tax Implications

Borrowing against your crypto assets may have tax implications. BitMerchants does not provide tax advice, and it is your responsibility to comply with all applicable tax laws. We recommend consulting with a tax professional regarding the impact of borrowing on your tax obligations.

8. Risk Disclosure

Borrowing against your cryptocurrency involves risk. The value of your collateral can fluctuate, which may affect your ability to repay the loan and may lead to liquidation of your assets. You acknowledge that you fully understand and accept these risks before using our borrowing services.

9. Amendments

BitMerchants reserves the right to amend these Borrow Terms at any time. Any changes will be communicated to you, and your continued use of the borrowing services constitutes acceptance of the amended terms.

10. Contact Information

For any questions or concerns regarding these Borrow Terms, please contact us at support@bitmerchants.com.

By using BitMerchants’ borrowing services, you acknowledge that you have read, understood, and agreed to these Borrow Terms.