Liquidation Protection Disclosures
Only available in CA, NY, FL, PA. This product allows eligible users to borrow U.S. dollars secured by crypto collateral. The maximum loan-to-value (“LTV”) ratio is 50% at origination.
A one-time, non-refundable Protection Fee is paid at loan origination to enroll in the Liquidation Protection Program, an optional service available for loans secured by certain digital assets. This service provides temporary forbearance from liquidation if your collateral value falls below the margin call threshold, subject to all terms and conditions of the Loan Agreement.
No Risk Transfer or Insurance: The Liquidation Protection Program is a service—not an insurance policy, derivative, or risk-transfer arrangement. The borrower does not acquire any ownership, rights, or interests in any hedge instrument that may be used by the platform. The Program simply delays liquidation for a fixed, predetermined period while the loan remains in good standing.
Program Limitations, Default, and Termination of Protection: Liquidation Protection does not eliminate all liquidation risk. Liquidation Protection applies only while the loan remains in good standing. The Program does not apply in the event of payment delinquency, default, or any other breach of the Loan Agreement. The Program immediately terminates if you fail to make a required payment when due or otherwise default under the Loan Agreement. Collateral may still be liquidated under those circumstances.
Borrower Responsibility: Participation in the Program does not alter your obligation to repay principal, accrued interest, or applicable fees in full. The collateral remains encumbered until the loan is repaid or satisfied. Borrowers are responsible for understanding all associated risks and loan terms before participating in the Program.
Interest Deferral Feature: By default, borrowers are opted into an interest-deferral feature, which allows interest to accrue and be added to principal with no monthly payment requirement. This feature is provided at no additional cost to the borrower. Borrowers may opt out of interest deferral at any time after origination and elect to make monthly interest payments at their discretion. Accrued interest continues to compound during the deferral period and is due upon repayment, refinance, or liquidation of the loan.
Loan Liquidation and Margin Requirements: The platform may impose additional collateral requirements, margin calls, or liquidation triggers in accordance with its risk management policies, during the term of participation in the Program. Liquidations will still occur if the loan becomes delinquent. Liquidation Protection applies only to price declines, not to missed payments, defaults, or violations of loan terms.
Borrower Obligations: You remain responsible for repayment of principal, accrued interest, and any applicable fees regardless of the performance of crypto or the value of the put hedge.
Tax and Regulatory Treatment: Borrowing against crypto may have tax, legal, or accounting implications depending on your jurisdiction. You are solely responsible for determining and reporting any tax obligations associated with this transaction. Neither the platform nor its affiliates provide tax, investment, or legal advice.
Counterparty and Custody Risks: crypto collateral and any associated hedge instruments may be held with third-party custodians, clearing brokers, or counterparties. Losses due to counterparty failure, market disruption, or cyber events may not be recoverable.
No FDIC or SIPC Insurance: Digital assets and loans secured by them are not insured by the Federal Deposit Insurance Corporation (FDIC), the Securities Investor Protection Corporation (SIPC), or any government agency.