Yes, we have various crypto loan providers but for some providers, while you have an active loan with Helio Lending, you will still own your crypto. It is stored in your name in a cold storage wallet, where it is insured, and cannot be traded. We completely understand that our borrowers want to know their crypto is safe and secure during their loan. So we make sure it is safe and secure.

Yes, for many of our crypto loan providers your crypto is secure during your loan. Your crypto is secure because: it is stored in a cold wallet; it is insured; and no-one can trade your crypto. We completely understand that many of our borrowers want to know their crypto is safe and secure during their loan. So we make sure it is safe and secure.

No, Helio Lending does not trade your crypto. Your crypto is kept secure in a cold wallet where it cannot be traded. And it is insured. We completely understand that our borrowers want to know their crypto is safe and secure during their loan. So we make sure it is safe and secure.

During your loan

If the price of your crypto goes up during your loan, then nothing happens.

What matters is the price at the end of your loan.

End of your loan

Yes, if the price of your crypto is higher at the end of your loan than it was at the start of you loan, then you get to keep some, or all, of that increase ― depending on how much the price has gone up.

During your loan

If the price of your crypto goes down during your loan, then nothing happens.

What matters is the price at the end of your loan.

End of your loan

If the price of your crypto at the end of your loan is lower than it was at the start of your loan, then:

• there is a risk that you may lose your crypto; but
• if you do lose your crypto, then you do not have to pay back your loan ― you keep the money.

The example below shows you what happens at the end of your loan, depending on whether the price of your crypto is lower, or higher, than it was at the start of your loan.

Example Scenario

Let’s assume:

1. Bob has 10 Bitcoin he wants to use as security for a loan through Helio Lending.
2. The Bitcoin price at the time of drawdown of the loan is $10,000.
3. So the security value that Bob provides is worth $100,000.
4. Bob and the funds provider agree:
   • that if the Bitcoin price falls, then Helio Lending will arrange for the sale of a Put Option at a “strike price” of $7,000 a Bitcoin. A Put Option can (depending on the strike price) save the borrower from having to pay back their loan; and
   • that if the Bitcoin price rises, Helio Lending will arrange for the purchase of a Call Option at a “strike price” of $12,000 a Bitcoin. A Call Option enables the borrower to keep at least some (and in some cases, all) of the increase in the price of their crypto.

The rest of this example explains what happens when those Options are used.

1. Bob borrows $70,000.
2. Bob pays the interest on the loan with cash he already has.

(BTW, for this example, assuming that Bob pays the interest on the loan with cash he already has helps to make the calculations below easier to follow. In fact, with a Helio Lending loan, you borrow the amount of interest that you need to pay for the loan. And you pay that interest to Helio Lending at the start of your loan.)

If at the end of Bob’s loan (on the very day it ends):

Bitcoin’s price has fallen to:

$6,000

which is below the Put Option “strike price” of $7,000 a Bitcoin, then Bob:

· does not have to pay his loan back;

· but does not get any of his Bitcoin back.

$9,000

which is above the Put Option “strike price” of $7,000 a Bitcoin, then Bob:

· repays his loan of $70,000; and

· receives his 10 Bitcoin back, which are worth $90,000.

Bitcoin’s price has risen to:

$11,000

which is below the Call Option “strike price” of $12,000 a Bitcoin, then Bob:

· repays the loan of $70,000; and

· receives his 10 Bitcoin back, which are worth $110,000.

$14,000

which is above the Call Option “strike price” of $12,000 a Bitcoin, then Bob:

· repays the loan of $70,000; and

· receives back $120,000 worth of his Bitcoin.

The funds provider keeps the other $20,000 worth of Bitcoin.

In each these of situations, Bob has another option ― that is, instead of paying the loan back etc., he can apply to roll the loan over for another term. If he and the funds provider agree to do that, then Bob pays interest for the new loan.

That’s the end of the example. But is it likely worth you knowing 2 more things about Put and Call options:

• By using the Put Options and Call Options explained in the example, your Helio Lending loan is guaranteed not to use margin calls ― this is good for borrowers
• Put Options and Call Options have been used for hundreds of years to protect borrowers from risk ― they have been used with loans to buy shares, on foreign currency exchange transactions, and in commodity options (for example, options to buy agriculture and mining products), and more.

It does not matter if the price of your crypto goes up, or down, during your loan. Even if the price goes down a lot during your loan:

• we cannot sell your crypto;
• we cannot require you to pay us any money; and
• we cannot ask you to provide more crypto or money as security for your loan.

That is, we cannot make any “margin calls”. Here’s an example of how a margin call works ― but remember Helio Lending guarantees no margin calls.

Example of margin call ― You will likely be glad that Helio lending does not use them.

Let’s assume:

• Mary borrows $7,000 from her bank to put with $3,000 of her own money to buy 10,000 of XYZ Corporation’s shares at $1.00 a share.
• The Loan to Value Ratio (known as the LVR) is 70% ― that is, the bank has lent Mary 70% of the value of the shares she bought with her loan.
• The security the bank has for Mary’s loan is the shares she buys with the loan.
• If the price of those shares falls from $1.00 to 60 cents, then the value of the shares ($6,000) is less than the amount of the loan ($7,000). (BTW, this example assumes Mary has not yet paid off any of the principal of her loan.)
• In that case, the bank can require Mary to pay off enough of her loan to bring the amount of her loan to below 70% of the value of her shares at that time. If the bank does this, then it is doing what is called “making a margin call”, which is what this example is about.
• So when the shares are valued at 60 cents, Mary would need to pay $1,800 off the loan, so as to bring the amount of the loan down to below $4,200, which is 70% of the new value of her shares, which is $6,000. Mary has to keep her LVR to &0% or lower.
• To be able to pay those amounts to reduce her loan, Mary may have to sell some of her shares. If she does, then she will have to sell them at a loss.
• If the price falls again, to say, 50 cents, then the bank can make another margin call ― requiring Mary to pay off more her loan, and perhaps to have to sell more shares, again at a loss. And if the price falls again, . . . .

Remember, Helio Lending guarantees no margin calls on its loans. Indeed, Helio Lending contracts do not allow it to make margin calls.

If at the end of the loan you cannot pay off your crypto loan, then:

• you can apply to roll your loan over for another term. If you and the funds provider agree to do that, then you pay interest for the new loan; or
• the funds provider may sell your crypto to repay your loan.

No. Helio Lending guarantees no margin calls ― which means that even if the price of your coin falls during your loan, we can’t ask you for money, or for more coin for a margin call.

You can borrow the money for up to 6 months. At the end of your crypto loan, you can apply to roll over the loan for another period of up to 6 months. If you do roll over the loan, then you would need to pay interest again.

The interest rate you need to pay ranges between 13% and 18% year, depending on:

• how much you borrow;
• how much crypto you provide as security;
• your Loan to Value Ration; and
• how long you borrow for.

No, there are no monthly payments. Instead, of paying monthly payments, you pay a one-off interest payment at the start of the loan. Your interest payment:

• is included in your loan amount; and
• is paid out of your loan before the loan is paid into your account.

Example Scenario

Assume:

• you borrow $100,000 USD;
• at an interest rate of 13%, which is $13,000.

In that case, your interest payment of $13,000 is paid out of your loan. So although you borrow $100,000, you receive only $87,000 in your account.

You can use any of the following crypto as security for your loan: Bitcoin (BTC), Ehtereum (ETH), Litecoin (LTC) and Ripple (XRP).

But we consider other crypto coins, just email and ask us.

The amount of crypto you need to provide as security for your loan depends on how much you borrow. You can borrow up to 70% of the amount of security you provide.

Example: If you provide $100,000 USD worth of crypto as security for your loan, then you can borrow up to $70,000 USD.

The ratio between the amount you borrow and the amount of crypto you provide as security is known as the “Loan to Value Ratio”.

For a Helio Lending crypto loan, the Loan to Value Ratio must be 70% or less.

BTW, the lower the Loan to Value Ratio you choose for your loan, the lower your interest rate will be.

Example: If you provide crypto worth $100,000 as security for your loan, then:

• if you borrow $70,000, the interest rate you pay will be high; and
• if you borrow $50,000, the interest rate you pay will be lower.

Crypto loans are generally provided to business or corporate entities. As a business loan, you may use the loan for whatever purpose you want, be it for a real estate purchase, new business, expand your business, purchase an automobile, or other need.

To apply for a Helio Lending crypto loan, you need to own crypto. You use your crypto as security to get the loan ― in the same way that someone who already owns a house can use their house as security to get a loan to, for example, renovate their house, or buy a car. BTW, when someone buys a house, they often get a loan to help them buy it. That’s not how a Helio Lending loan works. Although you can use your Helio Lending loan to buy crypto, you can’t use the loan to buy the crypto that you use as security to get the loan.

No, Helio Lending will not perform a credit check on you if you apply for a crypto loan through us.

No, Helio Lending does not take a charge, a mortgage of any other interest over any assets you buy with the crypto loan.

Example: If your business buys land with your loan, then Helio Lending does not have a mortgage, charge, or any other interest in the land.

If at the end of the loan you cannot pay off your loan, then:

• you can apply to roll your loan over for another term. If you and the funds provider agree to do that, then you pay interest for the new loan; or
• the funds provider may sell your crypto to repay your loan.

If you arrange a cryptocurrency loan through Helio Lending then:

• you can access the value of your crypto ― that is, you can get a loan in US dollars or stable coin;
• you do not have to pay any capital gains tax that you would have to pay if you sold your crypto;
• you still own your crypto;
• you still benefit from at least some of any rise in the value of your crypto,
• you are protected against at least some of any fall in the value of your crypto,
• you are guaranteed that there will be no margin calls on your loan