Why Choose a Cryptocurrency Backed Loan?
Matej Tomazin, President of the Board of Directors at ICONOMI, explains:“It brings an opportunity for crypto owners to still hodl their crypto assets and amplify their investment even in the times when unpredicted circumstances could push them to sell their crypto. As we are now experiencing a downfall in the market, we believe this is a perfect timing forICONOMI Loans to be launched.”
At ICONOMI we offer the following benefits:
- Instant cash (€),
- Fixed interest,
- 24/7 monitoring.
How Does it Work?
It’s really simple. You deposit Bitcoin (BTC), or Ether (ETH) as a collateral with min. 200% LTV, and EURos will appear for you on your ICONOMI account.
You can try it out and create a loan already today.
What is LTV (loan-to-value ratio) & why does it exist?
At ICONOMI LTV (loan-to-value ratio) is set to min. 200%, in order to limit the risk for lender (us) and borrower (you). LTV defines the amount of BTC or ETH you need to deposit in order for your loan to be granted. For example, if you want to borrow €1.000, and you set the LTV to 200% you need to deposit €2.000 worth of bitcoin or ether.
P.S. You can always choose to deposit more than 200% LTV to overcollateralize your loan, in order to postpone the beginning of your loan’s liquidation more on that a little later.
If the market drops there is a safety net installed for you and us. You will get 3 notifications to your email. The first one occurs at 180% LTV, the second one occurs at 160%, and at 150% LTV liquidation of your loan will begin.
What is yet to come? What will be the future updates for ICONOMI Loans?
Soon after the release we are adding an option to change your collateral asset. For example, if you created a loan backed by ETH, and ETH gets a negative trend, you may change your collateral type to BTC (without pausing or liquidating your existing loan). How awesome is that?