Contract terms
Here are some of the terms for our contracts 📜
What does a fixed-term contract mean?​
A fixed-term contract refers to an agreement where the terms, such as LTV, APR, and duration, are set at the beginning and cannot be changed once the contract is established. Both the borrower and lender must adhere to these predefined conditions until the loan is fully repaid. Once your contract is established, its terms — including LTV, APR, and duration — cannot be changed.
What is LTV? (Loan-to-Value ratio)​
Lendasat is a market-driven platform, meaning that lenders are free to select the LTV they require for their loans.
Loan-to-Value (LTV) ratio is a metric used to assess the relationship between the loan amount and the value of the collateral provided. The lender selects the LTV they wish the borrower to lock in for the loan. The starting LTV (for example, 50%) indicates how much collateral, such as Bitcoin, must be placed into an escrow contract to back a certain loan amount. As an example, if you want to secure a $10,000 loan at a 50% LTV, you'd need to deposit collateral worth $20,000. At a Bitcoin price of $25,000 per BTC, this equates to a deposit of 0.8 BTC (0.8 BTC * $25,000 = $20,000), establishing a 50% LTV. Should the LTV rise to 95% during the loan period, the system triggers a liquidation of the collateral to settle the loan and return the remaining funds to the lender.
What is APR? (Annual Percentage Rate) / Interest Rate​
On Lendasat, the APR is always expressed annually, but the actual interest amount will vary depending on the duration selected.
The APR (Annual Percentage Rate) / Interest Rate is the percentage charged on the loan amount that the borrower agrees to pay in addition to the principal by the maturity date. It determines the total interest cost over the loan term.
This APR excludes the origination fee and on-chain mining fees.
What is the loan duration?​
Lendasat is a market-driven platform, meaning that lenders are free to select the duration ranges they require for their loans.
The loan duration refers to the period from the loan disbursement to the maturity date, by which the borrower is required to repay the principal and any applicable interest. Loan duration can vary depending on the agreement between the borrower and the lender.