Ledn Loans

A Dollar Loan from Ledn allows you to borrow funds against your Bitcoin (BTC) without having to sell your digital assets. This means you can keep your BTC intact while accessing liquidity in USD or USDC.

How It Works

Collateral & Loan-to-Value (LTV):
Loans are typically issued at a 50% LTV. For example, if your BTC is worth $10,000, you can borrow up to $5,000.

The minimum loan amount is $500 USD, and clients must have at least $1,000 USD equivalent in BTC to apply.

Interest Rates, Fees & Terms:

• Loans have a standard 12-month term with flexible repayment options.

• No prepayment penalties – you can repay your loan early without additional charges.

• Interest accrues on a daily basis and is only due when the loan is closed.

• A 2% administrative fee applies at loan origination. This fee is not applicable to clients residing in Canada and the United States.

Custodied Loans collateral management method:

The collateral you post to secure your loan may only be re-posted by Ledn to a trusted institutional USD funding partner, such as a bank, credit fund or other corporate funding partner. Collateral is held securely in segregated on-chain addresses that are verifiable by Ledn, ensuring that the collateral is legally ring-fenced from a funding partner’s assets and protected even in the unlikely bankruptcy of our funding partner. Collateral is held securely in custody throughout the loan. Neither Ledn nor the institutional partner has the right to lend out your collateral to generate interest.

 

Key Benefits

• Receive funds in USDC, USD or your local fiat currency.

• Quick loan disbursement, typically within 12 hours of applying for your loan, assuming you send your bitcoin collateral to your approved loan promptly. This time may vary outside of business hours, and for fiat loans, depending on your bank.

• No early prepayment penalties and no payments until the loan is closed.

• Flexible repayment in BTC, USDC, or via wire transfer.

The collateral you post to secure your loans may only be re-posted by Ledn to a trusted institutional USD funding partner, such as a bank, credit fund or other corporate funding partner for the purpose of securing USD to fund the loans. Collateral is held securely in segregated on-chain addresses and verifiable by Ledn, ensuring that the collateral is legally ring-fenced from a funding partner’s assets and protected even in the unlikely bankruptcy of our funding partner. Collateral is held securely in custody throughout the loan. Neither Ledn nor the institutional partner has the right to lend out your collateral to generate interest.

Applying for a Dollar Loan is simple. Just follow these steps:

Step-by-Step Instructions

1. Log into Your Ledn Account
   Navigate to your dashboard at platform.ledn.io 

2. Select the Loan Type
   Choose BTC-backed loan.

3. Fill Out the Application
   Provide the loan amount, select how you’d like to receive the money (fiat, USD, USDC), and submit the loan application. Your loan is always denominated in U.S. dollars, regardless of the disbursement method you choose. 

Loans are normally automatically approved within 5 minutes but some jurisdictions require manual approval, which normally takes less than a day. 

4. Submit Collateral: Once approved, transfer your collateral to the provided wallet address:

• Go to your Loans tab

• Click Send Collateral

• Select the source of the collateral, either your Transaction Account or from anExternal Source

• Enter the amount and submit.

5. Receive Funds
   Disbursement typically occurs within 12 business hours after your loan application is submitted, assuming you send your bitcoin collateral to your approved loan promptly. Times may vary outside of business hours and depending on your bank for fiat disbursed loans.

Ledn Dollar Loans are available globally; however, availability depends on your country or region due to regulatory reasons.

To check whether Dollar Loans are available in your jurisdiction, please visit our Eligibility Page.

Restricted Regions

Certain jurisdictions currently do not support Dollar Loans due to regulatory limitations. These include, but are not limited to:

• U.S. States: California, Connecticut, Hawaii, Louisiana, Nevada, North Dakota, South Dakota, Tennessee, Vermont, Washington, and Washington D.C.
• Canadian Provinces: New Brunswick, Nova Scotia, Saskatchewan, Quebec
• Other International Regions: For the full details, refer to our Eligibility Page. 

Additional Requirements

In some eligible areas, loans may be subject to minimum principal requirements or confirmation of commercial purpose. Contact Ledn Support for assistance in determining availability in your location.

A B2X Loan is a unique product that enables you to double your Bitcoin exposure. When you apply for a B2X Loan, Ledn provides you with a USD loan that is immediately used to purchase additional BTC, using both your original and newly acquired Bitcoin as collateral.

This structure allows you to increase your Bitcoin position without needing to deposit additional cash.

How It Works

• BTC Collateral: You must hold a minimum of $500 USD worth of BTC in your BTC Transaction Account to qualify.
• Doubling Exposure: Ledn provides a USD loan which is automatically used to buy an equal amount of BTC, effectively doubling your position.
• Collateral Usage: The original and newly purchased BTC are used as collateral for the loan.
• Loan Term: 12-month fixed term
• Loan Principal: Contracted in USD

Interest Rates, Admin Fees & Terms

• Interest Calculation: Accrues daily; interest and fees are due only upon loan closure.
• Admin Fees: A 2% administrative fee may apply at origination.
• Collateral Management: All B2X Loan collateral is managed under the Custodied Loan method.
• Repayment Options:
  Repay any time within the 12-month term using BTC, USDC, or via wire transfer. No early repayment penalties.

To open a B2X Loan:

1. Log into Your Ledn Account: Ensure your BTC Transaction Account has a balance.
2. Use the B2X Calculator: Enter the amount of BTC you wish to double. The platform will display loan details.
3. Confirm and Place Order: Follow prompts to your loan request, add your TOTP Code to confirm the transaction, and the BTC will be purchased and your B2X loan started.

B2X Loans are available in several regions but come with specific restrictions:

Unavailable In:

• United States and Canada
• Certain Countries: You can check availability in your location by visiting our eligibility page here.

Ledn offers flexible options to help you manage and repay your loan with ease. You can choose to repay using your collateral, a USD wire transfer, or your USDC balance.

1. Repay with Collateral

You can repay your loan directly using your collateral through the Ledn platform. This method provides real time settlement once confirmed.

When choosing this option, the system will display the exact portion of BTC that will be sold to repay your USD outstanding balance. Please review these details carefully and ensure you agree with the amounts shown before entering your TOTP code, as this transaction is irreversible once confirmed.

For US residents, the Repay with collateral option is currently in the following States: Alaska, Alabama, Arizona, Colorado, Florida, Georgia, Idaho, Illinois, Indiana, Kansas, Kentucky, Massachusetts, Michigan, Minnesota, Missouri, Montana, Nevada, New York, Oklahoma, Pennsylvania, South Carolina, Texas, Utah, Virginia , Wisconsin, and Wyoming.

Note: This list may change from time to time, and Ledn cannot guarantee that your jurisdiction will be or remain available for any period of time.

2. ACH / Wire Transfer (USD)

You can repay your loan by sending a USD wire or ACH transfer from your bank account.

All wire payments must come from a bank account held under the same legal name as your Ledn account to comply with Anti-Money Laundering (AML) and Know Your Customer (KYC) regulations.

For more information on eligible accounts and name matching requirements, please refer to the Help Center article:
 Loan Disbursements and Repayments: Same-Name Bank Account Required

How to repay by wire transfer:

When submitting your wire transfer, please include your Loan ID(s) and repayment instructions in the Reference/Memo field. This is required so we can correctly apply your repayment in a timely manner. You can find your Loan ID in the details page of your loan and in the loan table.

1. Log in to your Ledn account.

2. Go to your Loans page and click Repay.

3. Select Wire Transfer as the payment method.

4. You’ll receive the banking details required to complete the wire from your bank.

5. Once done, click Confirm Transaction — only if you are making a full repayment.

Processing times may vary depending on your bank and can take up to 5 business days for funds to be received by Ledn and applied to your loan.

3. USDC Payment

You can repay your loan using your USDC balance directly from your Ledn platform.

This method provides a quick and seamless repayment experience, with funds applied almost instantly once the transaction is confirmed.

Make sure your Transaction Account has sufficient USDC balance before initiating the repayment to avoid any processing delays.  How do I deposit funds into my Transaction Account?

Early repayments are penalty-free, giving you control over how and when you settle your loan.

A loan top-up allows you to add more collateral, lowering your Loan-to-Value (LTV) and minimizing the risk of liquidation:

How to Top-Up:

1. Select “Top-Up” on Your Loan Dashboard: Log into your account and choose your loan.
2. Choose a Source: You can top up using funds from your Transaction Account or an external source.
3. Confirm: Upon confirmation, your LTV will be adjusted.

This feature ensures your loan remains secure during market fluctuations.

Ledn offers flexible options for renewing or refinancing your existing loans.

Loan Renewals

• Automatic Renewal:
  If your loan’s Loan-to-Value (LTV) is at or below 65% at maturity, it may be automatically renewed under a new loan agreement. The renewed loan may include a new administrative fee and a new interest rate, based on the rate in effect at the time of renewal. The renewal is based on the outstanding balance at maturity.
• Clients Not Eligible for Automatic Renewals: Clients in the following regions are not eligible for automatic renewals:

1. Canada: Quebec, New Brunswick, Nova Scotia, Saskatchewan
2. United States: California, Louisiana
3. Europe: Germany, France, Italy

Refinancing

• Loans can be refinanced after being open for at least 30 days.
• Refinancing may help adjust your loan terms, switch loan types, or secure updated rates.
• A refinance is subject to a new loan agreement, which may include a new 2% administrative fee. The refinance amount is calculated based on the outstanding balance at the time of the request.

Note: Refinancing or renewing a loan does not release additional fiat or unlock additional collateral.

If your loan is overcollateralized, you may be eligible to redeem or unlock part of your Bitcoin collateral through our Excess Collateral Redemption feature. This allows you to access funds when your Loan-to-Value (LTV) ratio drops below the redemption threshold.

What Is Excess Collateral Redemption?

Excess Collateral Redemption allows you to withdraw part of your collateral if your LTV drops below 30%, bringing it back up to a target LTV of 40%. This is often used by clients who want to:

• Release or unlock BTC collateral
• Withdraw collateral
• Access funds without closing the loan
• Use released funds for trading, earning interest, or opening a new loan

Eligibility Requirements: 

• The loan has been active for more than 60 days
• Your current LTV is below 30%
• You have not redeemed collateral in the last 60 days
• You have at least $100 USD worth of redeemable collateral available (maximum: $100,000 USD every 60 days)

How to Redeem Collateral

• Go to the “Active Loans” tab in your Ledn Dashboard.
• If your loan is eligible, you will see a “Redeem Collateral” button.
• Click it to unlock the available amount. 

The BTC will be transferred to your Transaction Account, where you can use it as needed.

Notes

• The collateral redemption does not act as a loan refinance or increment loan amounts.

Auto Top-up is a simpler and more intuitive way to Top-up your Ledn Loan collateral address(es), removing the need to manually monitor and manage your open loans’ status during times of price volatility.

Features:

• Automatic Adjustments: When your LTV hits 70%, funds from your Transaction Account are automatically added to your collateral wallet address to bring the LTV back to 65%.

• How to Enable: Toggle the Auto Top-Up feature in your loan settings.

In case you don't hold enough balance to bring back your loan's LTV to 65%, our system will still withdraw all available balance in your BTC Transaction account to top up your loan's collateral.

In the event that there's no remaining balance on your BTC Transaction account to top up your loan's collateral, you will receive a notification email informing you that, due to lack of available funds, we were unable to Auto Top-up your loan(s). In this case, you will need to continue with manual top up. 

 

Making a partial loan repayment allows you to pay down a portion of your outstanding balance without closing your loan. This can help reduce interest costs and lower your Loan-to-Value (LTV) ratio, giving you greater flexibility in managing your loan.

What Currencies Can I Use for Partial Repayments?

• USDC: Use your USDC balance directly from your Transaction Account.

• USD (Wire Transfer): You can make a bank wire in U.S. dollars using the repayment instructions provided in your account.

What Are the Minimum Repayment Amounts?

• USDC: Minimum of 100 USDC. Your loan must remain above $500 after the repayment.

• Wire Transfer (USD): Minimum of $1,000 USD. We do not support repayments that would reduce the loan balance below $500.

What Are the Benefits of Making a Partial Repayment?

• Lower LTV: Reduces the risk of automatic liquidation by increasing your collateral buffer.

• Reduced Interest Charges: Your repayment first covers any accrued interest and fees. The remaining amount reduces your loan principal, lowering the daily interest charged.

• Flexible Timing: You can make partial repayments whenever you choose.

How Do I Make a Partial Repayment?

To Repay in USDC:

1. Log in to your Ledn account.

2. Go to your Loans page.

3. Click on Repay, then select USDC as your payment method.

4. The system will automatically deduct the funds from your USDC Transaction Account.

To Repay via Wire Transfer (USD):

When submitting your wire transfer, please include your Loan ID(s) and repayment instructions in the Reference/Memo field. This is required so we can correctly apply your repayment in a timely manner. You can find your Loan ID in the details page of your loan and in the loan table.

1. Log in to your Ledn account.

2. Go to your Loans page and click Repay.

3. Select Wire Transfer as the payment method.

4. You'll receive the banking details required to complete the wire from your bank.

5. Do not click “Confirm” on the repayment modal unless you are repaying the full loan balance. Confirming the transaction prematurely may result in the system treating the payment as a loan closure.

6. If you click to confirm by mistake, or once your wire has been submitted, please visit our Help Center and submit a request to notify our team.

Additional Details

• Fees:

  • USDC repayments: No fee.

  • Wire transfers: Please note that for USD partial repayments made via wire transfer, our receiving bank charges a $6.11 fee, which is passed through and debited from the amount received.

• Processing Times:

  • USDC: Processed instantly.

  • Wire transfers: May take several business days depending on your bank.

• No Repayment Limits:
  There are no limits on how often you can make partial repayments. However, scheduled or recurring payments are not currently available.

Important: Partial repayments are final and cannot be reversed. Always double-check the amount and details before submitting.