Collateralized Crypto Loans
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COLLATERALIZED

CRYPTOLOAN

Short Term Interest Based Portfolio

Collateralized

Crypto Loans

Collateralized Crypto Loans

Our Short-Term Interest Based Portfolio consists of providing loans to individuals and corporations by securing digital assets as collaterals. In this new age of innovation sparked by Distributed Ledger Technology (DLT), people are beginning to invest or buy into a new asset class, ie. digital assets.


These people who hold digital assets in their portfolios, are often faced with a problem of limited liquidity. In this cash based digital economy, people may not have sufficient liquidity to operate a business or maintain day-to-day operations. Hence, selling digital assets is the only solution to lack of fiat money.

However, this would lead to a loss of possible revenue from further appreciation of the digital asset and additional costs, which may include exchange fees and possible foreign exchange losses.FundChain provides an alternative, that is clients can receive fiat money without having to liquidate any digital asset, at a cost of paying loan interests. This allows borrowers to gain access to ready cash for daily settlements and allows lenders to leverage on their idle cash in exchange for interests.


This process is fully automated by FundChain system where loans are issued to borrowers not by their solvency, but by the collateral provided. Lenders can predetermine what are the parameters to set to their borrowers before fiat money is disbursed. In this system, any borrower can also be a lender and vice versa.


FundChain generates revenue through lending liquidity to these people by charging interests over a tenure. Collaterals are monitored on an hourly basis as part of a risk management protocol, to keep the Loan-to-Value (LTV) within appropriate margins.


This Collateralized Crypto Loan Lender Borrower Network (CCLLBN) will be closely monitored and managed by FundChain’s backend system, to ensure that all loans are disbursed quickly, all repayments are received on time and most importantly, that all transactions are secured.

COLLATERALIZED CRYPTO LOAN NETWORK

WHAT IS FUNDCHAIN’S COLLATERALIZED CRYPTO LENDER BORROWER NETWORK (CCLBN)?

FundChain utilizes a well-balanced system under its Short-Term Portfolio to incentivize users to come together into a common network, providing a self-sustaining ecosystem for providing loans and taking up loans. The LBN makes sure that all participants within the network, are rewarded appropriately.

This process is fully automated by FundChain system where loans are issued to borrowers not by their solvency, but by the collateral provided. Lenders can predetermine what are the parameters to set to their borrowers before fiat money is disbursed. In this system, any borrower can also be a lender and vice versa.

This Collateralized Crypto Lender Borrower Network (CCLBN) will be closely monitored and managed by FundChain’s backend system, to ensure that all loans are disbursed quickly, all repayments are received on time and most importantly, that all transactions are secured.

FundChain generates revenue through lending liquidity to these people by charging interests over a tenure. Collaterals are monitored constantly as part of a risk management protocol, to keep the Loan-to-Value (LTV) within appropriate margins.

HOW DOES IT WORK?

The network will work with small to medium loan sizes in fixed denominations. The minimum loan amount will be 100 USD. The time for which a loan can be issued is predefined, between 12 months to 36 months.
Lenders will receive fixed interest rates based on the contracts that they select. Borrowers have more flexibility to select various types of borrowing contracts.
To keep lending within the existing market conditions, the LBN will calculate the recommended values of interest rates, which will be lower than in any other lending institutions. More loyal terms will be achieved due to the absence of costs associated with collateral property and competition between lenders.

Lender

Any individual or legal entity with fiat money can become a lender on the LBN. To give a loan, the user needs to deposit fiat money into his/her personal account in the LBN in any convenient way – SWIFT, SEPA, bank card. As the platform develops, the ways of replenishing the account and withdrawing money will expand.

The lender signs up for a loan, will indicate:
1. Loan amount according to predefined denominations
2. Liquidity provision method
3. Loan tenure according to predefined periods

Once the application is complete, the lender will also be subjected to KYC and AML measures, before the loan begins, thereon, interests will be accrued.

Borrower

The borrower must deposit cryptocurrency into his/her personal account within the LBN, to qualify to borrow a loan. The borrower, during the application, will have to indicate:

1. Loan amount according to predefined denominations
2. Loan tenure according to predefined packages
3. Option for early repayment

During the loan term, its costs as an interest rate can be offset by an increase in the cryptocurrency value. As such, borrowers will be able to not only retain the blockchain assets, but also to gain any appreciation in value of these assets.

Our advantages

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