DIGITAL ASSET LENDING, MARGIN, AND COLLATERAL AGREEMENT
(Comprehensive Digital Asset Borrowing Agreement)
1. Introduction
This Digital Asset Lending, Margin, and Collateral Agreement (the “Agreement”) sets forth the terms and conditions governing the provision of digital asset lending services by the Platform to users.
By accessing or using the Platform’s lending services, the user acknowledges and agrees to be legally bound by this Agreement and the Platform’s Terms of Service.
This Agreement constitutes a legally binding contract between the user and the Platform.
2. Definitions
For purposes of this Agreement, the following terms shall have the meanings set forth below:
“Platform” means the digital asset trading and financial services platform that provides digital asset lending services.
“Digital Assets” means cryptocurrencies, blockchain-based tokens, or any digital units of value supported by the Platform.
“User Account” means the registered account maintained by a user on the Platform.
“Wallet Account” means the digital asset wallet associated with a User Account.
“Loan” means digital assets borrowed by a user from the Platform.
“Collateral Assets” means digital assets pledged by the borrower as security for repayment of a Loan.
“Loan-to-Value Ratio” or “LTV” means the ratio between the outstanding loan amount and the market value of pledged Collateral Assets.
3. Eligibility
To use the Platform’s lending services, a user must:
(a) be at least eighteen (18) years of age;
(b) successfully complete the Platform’s identity verification procedures; and
(c) comply with all applicable laws and regulations.
The Platform reserves the right, in its sole discretion, to deny access to lending services to any user.
4. Loan Terms
Loans may be offered subject to the following indicative interest schedule:
Loan Term Daily Interest Rate
1 Day 0.05%
3 Days 0.08%
7 Days 0.09%
15 Days 0.095%
30 Days 0.098%
The estimated Annual Percentage Rate (“APR”) may range from approximately 18.25% to 35.8%, depending on the loan duration.
Interest shall be calculated using the following formula:
Interest = Principal × Daily Interest Rate × Borrowing Days
Interest shall accrue on a daily basis until the Loan is repaid.
The Platform reserves the right to modify interest rates from time to time based on market conditions.
5. Collateralization
Upon borrowing Digital Assets through the Platform:
(a) the borrower’s Digital Assets held in the Wallet Account shall automatically become pledged as Collateral Assets;
(b) such Collateral Assets shall remain locked during the loan period; and
(c) withdrawals and transfers of Collateral Assets may be restricted until the Loan has been fully repaid.
For illustrative purposes, the Platform may apply risk parameters such as:
Parameter Example
Initial LTV 60%
Margin Call Threshold 75%
Liquidation Threshold 85%
These parameters may be modified by the Platform from time to time.
6. Loan Delivery
Loans shall be credited to the borrower’s Wallet Account.
A Loan shall be deemed delivered once the transaction has been recorded in the Platform’s internal ledger system.
7. Repayment
Borrowers may repay Loans at any time through the Platform interface.
Interest shall be calculated based on the actual borrowing period.
Upon full repayment of the Loan principal and all accrued interest, restrictions on the Collateral Assets shall be automatically released.
8. Risk Disclosure
Digital asset lending involves significant risks, including, but not limited to:
(a) extreme market price volatility;
(b) blockchain network congestion or failures; and
(c) regulatory or legal changes affecting digital asset markets.
By using the lending services, users acknowledge and accept these risks.
9. Compliance and Regulatory Obligations
Users agree not to use the Platform for unlawful activities, including, but not limited to:
(a) money laundering;
(b) terrorist financing;
(c) fraud or deception; and
(d) sanctions evasion.
The Platform may freeze or restrict accounts suspected of unlawful activity in accordance with applicable laws and regulations.
10. Security Responsibilities
Users are solely responsible for maintaining the confidentiality and security of their account credentials and personal devices.
The Platform shall not be liable for losses resulting from unauthorized access caused by user negligence.
11. Limitation of Liability
To the fullest extent permitted by applicable law, the Platform shall not be liable for:
(a) indirect or consequential damages;
(b) loss of profits or business opportunities;
(c) losses resulting from market volatility; or
(d) blockchain network disruptions or failures.
12. Governing Law
This Agreement shall be governed by and construed in accordance with the laws of the State of Delaware, United States, without regard to conflict of law principles.
13. Dispute Resolution
Any dispute arising out of or relating to this Agreement shall first be resolved through good-faith negotiations between the parties.
If such negotiations fail, the dispute shall be submitted to arbitration administered by the American Arbitration Association.
The arbitration decision shall be final and binding on the parties.
14. Termination
The Platform may terminate this Agreement if:
(a) the user violates the Platform’s policies or terms;
(b) regulatory obligations require termination; or
(c) the Platform discontinues lending services.
15. Force Majeure
The Platform shall not be liable for delays or failures resulting from events beyond its reasonable control, including, but not limited to:
(a) blockchain network disruptions;
(b) cyber attacks;
(c) natural disasters; or
(d) regulatory changes.
16. Severability
If any provision of this Agreement is determined to be invalid or unenforceable, the remaining provisions shall remain in full force and effect.
17. Entire Agreement
This Agreement constitutes the entire agreement between the user and the Platform with respect to digital asset lending services and supersedes all prior or contemporaneous agreements or understandings.