Lendasat DocsContract Terms
Understand the key terms of Lendasat loan contracts including LTV, APR, and loan duration.
Understanding your loan contract terms is essential before borrowing.
Fixed-Term Contracts
All Lendasat contracts are fixed-term, meaning terms are locked once the loan begins:
| What's Fixed | Can It Change? |
|---|---|
| LTV ratio | No |
| APR (interest rate) | No |
| Loan duration | No |
| Loan amount | No |
| Collateral requirements | No |
What this means for you:
- You know exactly how much interest you'll pay
- You know when repayment is due
- You know how much collateral is required
- Early repayment still requires full interest payment
LTV (Loan-to-Value Ratio)
LTV determines how much Bitcoin you need to lock up for your loan.
Formula: LTV = (Loan Amount ÷ Collateral Value) × 100
Example at 50% LTV
| BTC Price | Loan Amount | Required Collateral | BTC Needed |
|---|---|---|---|
| $100,000 | $10,000 | $20,000 | 0.2 BTC |
What Happens When BTC Price Drops?
| BTC Price | Your 0.2 BTC Worth | Your LTV | Status |
|---|---|---|---|
| $100,000 | $20,000 | 50% | Safe |
| $80,000 | $16,000 | 62.5% | Safe |
| $60,000 | $12,000 | 83.3% | Warning |
| $55,000 | $11,000 | 90% | Liquidation |
The liquidation threshold is set at 90% LTV, where lenders may initiate collateral liquidation. Once this threshold is reached, the lender can trigger the liquidation at any time. The exact liquidation price depends on when the lender chooses to trigger the liquidation, which may result in a higher or lower liquidation price based on market conditions at that moment.
When liquidation occurs, fees are charged and deducted from the collateral value. For detailed fee information, see our Fee Schedule. Borrowers retain the right to add supplementary Bitcoin to their collateral position at any time to maintain a healthy LTV ratio and avoid liquidation.
To Avoid Liquidation
- Add more BTC collateral to lower your LTV
- Repay early to exit your position
Lower LTV = Safer but more BTC required | Higher LTV = Less BTC but higher risk
APR (Annual Percentage Rate)
APR is the yearly interest cost, calculated proportionally for your loan duration.
How It's Calculated
| Loan Amount | APR | Duration | Interest Owed | Total Repayment |
|---|---|---|---|---|
| $10,000 | 8% | 12 months | $800 | $10,800 |
| $10,000 | 8% | 6 months | $400 | $10,400 |
| $10,000 | 8% | 3 months | $200 | $10,200 |
APR excludes:
- Origination fee (1.5%)
- On-chain transaction fees
Repayment Options
| Type | Description |
|---|---|
| Bullet repayment | Full amount (principal + interest) at end of term |
| Monthly payments | Interest paid monthly if lender requests |
Loan Duration
Duration is the time from loan disbursement to maturity date.
| Duration | Interest (at 8% APR on $10k) | Notes |
|---|---|---|
| 1 month | $67 | Shortest term |
| 3 months | $200 | Common choice |
| 6 months | $400 | Balanced option |
| 12 months | $800 | Maximum flexibility |
Key Rules
- Duration is fixed and cannot be changed mid-loan
- Early repayment allowed, but full interest still applies
- Extensions possible only if the lender has active offers
Quick Reference
| Term | Definition |
|---|---|
| Principal | Original loan amount (excluding interest/fees) |
| Maturity Date | Deadline for full repayment |
| Collateral | BTC locked in multisig to secure the loan |
| Margin Call | Warning at 80%/85% LTV before liquidation |
| Liquidation | Forced sale of collateral at 90% LTV |