What to do when funds are urgently needed and you don’t want to sell cryptocurrency? The CICLEX team has already thought of everything! Now the company’s clients can get loans secured by cryptocurrency.
How to get such a loan? Now let’s use Bitcoin as an example:
• Bitcoin is stored in the user’s personal account, blocked on a special wallet.
• The borrower chooses the loan term (from 1 to 12 months) and receives 70% of the value of Bitcoin in USDT currency minus the commission (1 month – 1%), and the rest of the funds is held for the duration of the loan.
• The value of the coin is fixed at the time of the transaction and is valid for the entire term of the agreement.
• Let’s imagine that Bitcoin`s rate is $ 100,000. The user has issued a loan for 3 months. He will receive a loan of 67,000 USDT (70% body – 3% commission). After 3 months, to repay the loan, you need to pay 70,000 USDT, since the commission was deducted when the loan was received. After that, the Bitcoin wallet is unlocked, which has already increased in value.
• If the currency rate decreases, the difference will be deducted from the funds, but if the rate falls by more than 20%, the loan is closed and you are left with the money paid. The user may not return the loan and interest, and the company keeps Bitcoin for itself.
• When the client repays the loan for all months and for the last month the rate falls by more than 20% – the loan is also canceled.
• You can use the lending service by pledging any cryptocurrency available on the platform. Bitcoin only served as an example for us.
Use it! This is a cool tool when you need money but don’t want to sell coins.