Questions

When borrowing against my Bitcoin, what currency will I receive in return?

When you borrow on Lendasat, you receive stablecoins such as USDC or USDT, depending on the loan offer and the blockchain network selected by the lender. We also allow fiat disbursement and Virtual Card payouts. The currency you receive depends on the loan offer you choose. If you opt for a Virtual Card, you will currently only see offers in USDC on the Polygon network.

On which blockchain network will I receive the principal of my loan?

Lendasat is a market-driven platform. This means lenders can create offers on a variety of blockchains. Currently, stablecoin loan disbursement is possible on Ethereum, Polygon, Solana, Starknet, and the Liquid Network. The specific network depends on the loan offer you accept.

How can I choose to have my loan disbursed in stablecoins or on a Virtual Card?

Once logged into your Lendasat account, click "Request a Loan". You'll be asked to choose your payout method. If you select the Virtual Card option, you'll only see offers in USDC on Polygon (this will evolve as we expand support for other networks and coins).

Who do I repay the loan to if I used a Virtual Card?

Even if the funds were delivered via a Virtual Card, the repayment always goes directly to the lender who funded your loan. Lendasat and its partners never hold your funds or act as intermediaries in repayment.

How do I repay my loan when taken in the Virtual Card or via Bringin?

Regardless of how the funds were delivered (Virtual Card, Bringin, or on-chain), you must repay your lender in stablecoins, on the same blockchain and in the same asset as initially agreed. Provide the transaction hash as proof. You may use any fiat on-ramp services, or non-KYC ones like Mt Pelerin.

Can I repay my loan in advance?

Lendasat uses fixed-term contracts, which means the full interest applies whether you repay on day 1 or on the maturity date. Early repayment is possible, but it won't reduce the interest due.

What happens if I do not repay on time?

If the loan reaches its maturity date and no repayment is made, your Bitcoin collateral will be liquidated. The lender will recover the loan amount plus interest from the collateral. You will lose part or all of your BTC depending on the liquidation value, but you won't owe any extra debt.

How will I receive my collateral back?

Once you've fully repaid the loan (principal plus interest), your Bitcoin collateral will be automatically returned to the refund address you specified when the contract was created. Make sure you are the true owner of this address.

Can my collateral be liquidated?

Yes. Your collateral can be liquidated in 2 cases:

• If your Loan-to-Value (LTV) ratio reaches 90% during the loan
• If you fail to repay the loan on time

On Lendasat, at 90% LTV the lender can start to liquidate the borrower. The lender controls when to trigger the liquidation after this threshold is reached, and the exact liquidation price depends on when they choose to initiate it. This means the liquidation price could be higher or lower depending on market conditions at the time the lender triggers the liquidation.

Please note that if your collateral is liquidated, fees will be deducted from the collateral value. For detailed fee information, see our Fee Schedule.

In both cases, the system ensures the lender is reimbursed.

Can I add collateral to avoid being liquidated?

Yes. At any time during your loan, you can increase your BTC collateral. This lowers your LTV and helps prevent liquidation. Simply go to your active contract and click the (+) Add Collateral button.

Can I overcollateralize from the beginning?

Absolutely. While each lender sets a minimum LTV (often 50% or 70%), you are free to lock in more collateral from the start. This gives you a safety margin and reduces the risk of margin calls.

Will I be notified before my collateral is liquidated?

Yes. Lendasat will send you alerts if your LTV crosses key thresholds:

• 80% - Initial warning
• 85% - Urgent warning
• 90% - Liquidation

These alerts, sent by email or Telegram, help you act in time to top up collateral or repay.

Can I extend a loan?

Yes. Before your loan reaches maturity, you can request an extension. However, this is only possible if:

• The lender allowed it in their loan offer
• You request the extension with the same lender

If approved, the contract is extended.

Please note that a renewal fee will be charged when you extend your loan. This fee will be deducted from your collateral and is in addition to any interest charges for the extended period. For detailed fee information, see our Fee Schedule.

How long does it take to receive my Bitcoin collateral after repayment?

Once your repayment is confirmed by the lender (or by the smart contract, depending on the protocol version), the BTC collateral is released immediately to your refund address. Network confirmation times may vary but generally take a few minutes.

Is borrowing on Lendasat a taxable event?

Generally, borrowing is not a taxable event because you are not selling your BTC, merely using it as collateral. However, you should consult a tax advisor in your jurisdiction to understand the specifics. Lendasat does not provide tax advice.

Do I need to complete KYC to borrow?

No KYC is required to access the core borrowing functionality on Lendasat. However, some lenders may ask to KYC the borrower.

Can I see real-time updates of my loan health?

Yes. From your dashboard, you can view your current LTV, the collateral value, and any margin call alerts. Lendasat provides real-time monitoring of your position.

I've funded the collateral contract, but I can't see anything on Lendasat, why?

• Your transaction requires at least 1 confirmation on the Bitcoin blockchain. Please double-check the mempool to confirm if that's the case.
• The exact amount of Bitcoin must be sent to the collateral funding address.

If you have verified these two points and nothing happens, please contact us via the support channel on our Discord, or by email.

I did not receive my Virtual Card, why?

If you selected the option for your loan disbursement to be made on a Virtual Card, the lender will need to send the stablecoins to the provider on your behalf.

The payment is made in USDC on the Polygon blockchain network, and 372 confirmations are required, which should take approximately 15 to 20 minutes. If you encounter any issues, please contact us.

I did not receive the right amount of stablecoins.

Please open a dispute and provide the transaction hash.

I did not send the right amount of stablecoins to the lender.

The lender will open a dispute and will require a correction. If you do not send the exact amount, a partial liquidation may be required.

I lost access to the wallet from which I extracted the refund address.

As long as you have your contract secret, you will be able to change the refund address and receive your collateral on a new wallet after repaying your loan.

Still Need Help?

If your issue isn't covered here, reach out to us:

• Discord: discord.gg/kyxqWFKMCF
• Email: support@lendasat.com