At Unchained Capital, we pride ourselves in transparency of our program/process and delivering excellent customer service to consumers and businesses borrowing against their bitcoin and ether. The following section includes some of the questions we've received from customers. We're always updating our FAQ, so if you have a question that's not answered please don't hesitate to ask firstname.lastname@example.org.
What type of collateral do you accept?
Unchained Capital currently offers crypto-secured loans using Bitcoin or Ethereum as collateral.
What index is used for cryptocurrency prices?
To determine loan-to-value ratios and collateralization for Bitcoin, Unchained Capital references the CME CF Bitcoin Real Time Index, a spot price index with independent oversight and data fed by trading platforms such as Bitstamp, GDAX, itBit and Kraken.
To determine loan-to-value ratios and collateralization for Ethereum, Unchained Capital references the Gemini ETHUSD rate which is determined by the buyers and sellers on the exchange.
What loan durations are available?
Loan durations from 3 months - 60 months are available for application.
What interest rates do you charge?
Interest rates vary by location, loan size, and other parameters.
Interest Rates typically range from 8-14%
Limited time offer until December 31st 2018: we are offering interest rates of 5.99% on loans with terms of 6 months or less
What is your loan-to-value ratio?
We lend at a 50% loan-to-value ratio. Customers may borrow $1 for every $2 of collateral deposited.
What is your minimum loan amount?
The minimum loan amount is $10k for domestic loans and $100k for international loans. Requirements on minimum size, interest rates, and other details do differ between states.
Are there any prepayment fees?
No. Loan principal and accrued interest can be paid down at any time without penalty.
What happens if the price decreases?
An email notification will be sent out to alert borrowers of a price decrease. To bring a loan back to the original loan-to-value ratio, a borrower may: 1) Deposit additional collateral or 2) Submit a principal payment in USD
What happens if the price increases?
Partial returns of collateral are available upon request once the collateral:principal ratio exceeds 250% (equivalent to 40% loan-to-value). We will only honor requests if it has been at least 30 days since the start of the loan or the last margin call.
Do you offer line of credit loans?
The loan agreement is structured as a Term Loan. Initial loan funding will be for the entire loan amount. Interest only payments will be due monthly with a final lump sum payment due at the end of the term. Additional principal payments can be made at any time during the loan without penalty.
Do you offer international loans?
Yes. Unchained Capital operates internationally depending on the jurisdiction. Support for international borrowers is limited to loans with a commercial purpose and a $100k USD minimum loan amount.
Why do you collect profile details?
The profile information we collect is in the service of our Know Your Customer (KYC) and Anti-Money Laundering (AML) policies. Personal loan profile details include name, birth date, address, SSN, photo ID, and source of funds. Business loan profile details include legal name, address, EIN, Articles of Incorporation, Certificate of Good Standing, proof of address, plus details on principals and large shareholders.
What are the requirements to obtain a personal loan?
You must live in a jurisdiction in which Unchained can make personal loans.
You must complete our KYC/AML program when you apply for an account.
You must deposit the appropriate collateral amount into your loan’s vault address.
In which states does Unchained Capital make personal loans?
Unchained Capital makes personal loans in most US states. Requirements on minimum size, interest rates, and other details do differ between states so reach out to understand whether we can work with you.
We are constantly expanding our reach and hope to work with borrowers across the country soon. Personal loans are currently **not** available in the following states:
Does borrowing with Unchained affect my credit score?
No. Unchained Capital does not perform a credit check when evaluating borrowers. We do not report information to any credit bureau. We may conduct an eligibility inquiry (known as a “soft credit pull”). This inquiry does not affect your credit score.
What are the requirements to obtain a business loan?
The business must be located in a jurisdiction in which Unchained can make business loans.
The business must complete our KYC/AML program when applying for an account. This includes providing information about all directors, officers, and shareholders with more than 20% ownership in the business.
The business must deposit the appropriate collateral amount into their loan’s vault address.
In which states does Unchained Capital make business loans?
Unchained Capital makes business loans in most US states. Requirements on minimum size, interest rates, and other details do differ between states so reach out to understand whether we can work with you.
We are constantly expanding our reach and hope to work with companies across the country soon. Business loans are currently **not** available in the following states:
What happens to my collateral during my loan?
Once approved, we will generate an address in our cold storage vault dedicated to your loan. You will send your collateral to this address.
Funds will remain in this address for the duration of your loan. You will be able to monitor the balance at any time using our website or any other block explorer you wish.
For maintenance reasons, we may move the funds from the original vault address to another vault address. You will be notified in advance in such a scenario.
We do not leverage your collateral for other products or services (no fractional-reserve lending).
When you close your loan and repay your principal, your collateral will be returned to an address of your choosing.
If your loan enters default at any time, we will be forced to liquidate a portion of your collateral in order to cover our principal cost and any unpaid interest. Any remainder will be returned to an address of your choosing.
How does Unchained Capital store my collateral?
Collateral is either stored in a multi-institution multi-signature address, or a single-institution multi-signature address, depending on the borrower’s choice at the time of a loan.
Unchained Capital’s multi-institution custody solution enables borrowers to distribute trust across three different parties: Themselves, Unchained Capital, and a 3rd-party key agent. Each party holds one key, and two of the three keys are always required to authorize a transaction (2-of-3 multisig).
In both single and multi-institution custody solutions, the collateral storage addresses are backed by hardware wallets. Hardware wallets that are controlled by Unchained or 3rd parties are PIN/password protected and operated by authorized signing staff in multiple US cities.
All Vault addresses we provision from our multisig cold wallet are single-purpose and dedicated to each customer loan.
At no point does customer collateral reside in a network-connected (hot) wallet of any kind.
Unchained Capital does not automate withdrawals of collateral. All transactions require intervention and coordination of multiple executives and authorized signing staff.