Introducing the VegaX Crypto Loan Program

Leverage Loan

Cash Loan

LTV

LTT

Loan process

  1. Login to VegaX.
  2. Click ‘apply for loan’.
  3. Choose the type of loan (3:1 or cash loan), collateral size, loan size, and the loan period (for a cash loan, customers also have to choose between a lump-sum payment and a level payment).
  4. VegaX will show how much the customer will be paying for fees and interest and other loan terms.
  5. After the customer confirms, VegaX will provide him/her with the wallet address that he/she has to send collateral (BTC) to.
  6. After sending collateral, the collateral amount will show in the dashboard.
  7. Clicking on the ‘execute loan’ button will start the loan! A loan dashboard will be available.
  8. When the borrower needs to pay for fees or interest, the dashboard will show this. If no new deposits are made, then the fees/interest will be deducted from the collateral until liquidation.
  9. At the end of the loan period, for a 3:1 loan, the loan will automatically be closed and the profit + collateral will be sent to the customer’s wallet. For a cash loan, the customer has to send the cash (usdt) back to VegaX’s wallet. If he/she does not, the collateral-loan amount will be sent to the customer’s wallet.

Balance check

Deposit & Withdraw

  • Collateral needs to be deposited into VegaX’s customer wallet in order to start a loan.
  • Users can only withdraw up to the minimum required collateral amount + 3 months of fees and interest. If, for example, a 3:1 btc loan borrower deposited 1.3 btc and has a loan of 3 btc, and 3 months of fees and interest is 0.1 btc, then he/she can only withdraw 0.2 btc from the deposit.
  • When more collateral or margin is needed, users have to deposit more bitcoin into the VegaX wallet.

Loan fee & interest schedule notice and table

Loan and qualification requirements

  • Client needs to have at least KYC level 2.
  • Client must have a crypto wallet that we can send crypto to (when giving back crypto).
  • Client must have deposited at least the minimum collateral amount + the origination fee + 3 months of interest payments in crypto to the VegaX wallet.
  • Client must sign a loan contract mentioning the term of the contract (liquidation, payments, terms, maturity, etc).

Fees and interest rates (3:1)

  • Origination fee will be withdrawn from the balance as the loan is served
  • Monthly interest will be withdrawn from the balance at the end of every month (if 1 month is not filled, partial interest will be withdrawn according to the date)
  • Or what we can do is withdraw monthly interest starting from a month later, and withdraw interest every month after that
  • When the borrower wants to close the loan before the end of the month,(the word payback does not make sense since he/she is not required to pay back the total amount of the loan), then partial monthly interest will be applied. (if he/she decides to close the loan on July 7th, 7/30*x% will be applied)
  • If the payment is not made, then it will be deducted from the collateral
  • Since we are going to use futures to make the position, there will be a rollover fee at the end of every March, June, September, and December
  • The Rollover fee will be withdrawn on the same date for all borrowers

Fees and interest rates (cash loan)

  • The loan will be transferred to the borrower after deducting the origination fee
  • If the user deposits 100k worth of crypto, and loans out 50k, then 50k*(1-x%) will be sent to the user
  • Borrower has to pay monthly interest by depositing the amount to the Vega X wallet.
  • If the payment is not made, then it will be deducted from the collateral
  • The payment due date will be the same as the 3:1 loan
  • If the borrower has not paid back the principal + interest at the loan maturity date, there will be an overdue payment charged every month, which will be much higher than the monthly interest.
  • 1% annual interest on remaining period

Lock-up period

Warning and Liquidation level (3:1)

  • A warning will be sent starting at 80% LTT.
  • The deposit will be seized by VegaX (the margin will be liquidated) when the LTT reaches 95%.
  • Residual bitcoin after liquidation will be sent to the user’s wallet after deducting the fees or interest that are not fully paid.
  • In order to stop receiving warnings or avoid liquidation, borrowers have to deposit enough bitcoin to make the LTT go below 80%.

Warning and Liquidation level (cash loan)

  • A warning will be sent starting at 70% LTV (which means if loaned in the full amount, the bitcoin price has dropped about 30%).
  • The collateral will be seized by VegaX (will be liquidated) if LTV reaches 95%.
  • If there is a balance (collateral) left after liquidation, it will be withdrawn to the user's wallet.
  • Residual bitcoin after liquidation will be sent to the user’s wallet after deducting the fees or interest that are not fully paid.
  • In order to stop receiving warnings or avoid liquidation, borrowers have to deposit enough crypto to make the LTV go below 70%.

Loan Redemption

🚀Better Indices, Better Returns — VegaX

Questions? 👉🏼 info@vegaxholdings.com

🎯Follow, Message, Tweet, Clap, & Join Us Here:

VegaX Site | VegaX Twitter | VegaX FB | VegaX LinkedIn | VegaX IG

--

--

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store
VegaX Holdings

VegaX Holdings

223 Followers

VegaX: The Future of Digital Asset Management — Innovation of Proprietary Indices and Next-Gen Digital Asset Management Products. https://vegaxholdings.com