Lendasat DocsContract Terms
Understand the key terms of Lendasat loan contracts from a lender's perspective.
Understanding contract terms helps you set competitive offers and manage risk effectively.
Fixed-Term Contracts
All Lendasat contracts are fixed-term - terms are locked once the loan begins:
| What's Fixed | Can It Change? | Your Benefit |
|---|---|---|
| APR (interest rate) | No | Guaranteed returns |
| LTV ratio | No | Known risk level |
| Loan duration | No | Predictable capital lock-up |
| Loan amount | No | Clear position size |
What this means for you:
- Full interest guaranteed, even if borrower repays early
- Borrower cannot change terms mid-contract
- Predictable, fixed income from each loan
- Your capital is committed for the full duration
LTV (Loan-to-Value Ratio)
LTV is your primary risk control. It defines how much cushion exists between your loan and the borrower's collateral.
Formula: LTV = (Loan Amount ÷ Collateral Value) × 100
Example: $10,000 Loan at 50% LTV
| BTC Price | Collateral Value | LTV | Your Position |
|---|---|---|---|
| $100,000 | $20,000 (0.2 BTC) | 50% | Safe - 2x coverage |
| $75,000 | $15,000 (0.2 BTC) | 66.6% | Safe - still buffered |
| $60,000 | $12,000 (0.2 BTC) | 83.3% | Warning zone |
| $55,556 | $11,111 (0.2 BTC) | 90% | Liquidation - you're protected |
LTV Risk/Reward
| LTV You Set | Collateral Buffer | Risk Level | Typical APR |
|---|---|---|---|
| 50% | 2x loan value | Low | Lower |
| 60% | 1.67x loan value | Medium | Medium |
| 70% | 1.43x loan value | Higher | Higher |
At 90% LTV, you can trigger liquidation to protect your position and recover your funds.
APR (Annual Percentage Rate)
APR defines your return, calculated proportionally for the loan duration.
Your Earnings Calculator
| You Lend | APR You Set | Duration | Your Return | Total Received |
|---|---|---|---|---|
| $10,000 | 8% | 12 months | $800 | $10,800 |
| $10,000 | 8% | 6 months | $400 | $10,400 |
| $10,000 | 12% | 6 months | $600 | $10,600 |
| $10,000 | 12% | 3 months | $300 | $10,300 |
Your interest is guaranteed regardless of:
- Early repayment by borrower
- Liquidation event
- Market conditions
Payment Options You Can Offer
| Type | Description | Best For |
|---|---|---|
| Bullet repayment | Full amount at end of term | Simplicity |
| Monthly payments | Interest paid monthly | Cash flow |
Loan Duration
Duration defines how long your capital is committed and your interest calculation period.
Duration vs Returns
| Duration | Capital Lock-up | Interest (8% APR on $10k) |
|---|---|---|
| 1 month | Short | $67 |
| 3 months | Short-Medium | $200 |
| 6 months | Medium | $400 |
| 12 months | Long | $800 |
Key Rules
- You set acceptable duration ranges in your offers
- Terms are fixed once principal is sent
- You can allow extensions if agreed upfront
- Interest is guaranteed for full period
30/360 Day Convention: We use simplified interest calculation where every month = 30 days and every year = 360 days. This is standard practice in corporate bonds and loan agreements.
Quick Reference
| Term | Definition |
|---|---|
| Principal | Amount you lend (excluding interest) |
| Maturity Date | When borrower must repay in full |
| Collateral | Borrower's BTC locked in multisig |
| Margin Call | Warning sent to borrower at 80%/85% LTV |
| Liquidation | Your protection at 90% LTV |