Loan Management

What are tiered loan rates?

Ledn now offers four transparent pricing tiers for all Bitcoin-backed loans. Your interest rate is determined by your individual loan amount – the larger your loan, the lower your rate. Rates are displayed upfront on the platform so you always know exactly what you’ll pay before you apply. There are no hidden fees, no negotiations, and no surprises.

How are tiers determined?

Your tier is based on your individual loan amount at the time of application, refinance, or renewal. You can see the exact tier thresholds and corresponding rates directly on the Ledn platform using the loan calculator. As your borrowing needs grow, your rate drops automatically.

Do tiered rates apply to both Dollar Loans and B2X Loans?

Yes. Tiered pricing applies to all new loan applications, refinances, and renewals across both Dollar Loans and B2X Loans.

I have an existing loan. Can I get the new lower rate?

Your existing loan will maintain its current rate and terms until maturity. You have two options to access the new tiered rates:

• Refinance your loan: If your loan is eligible for refinancing, the refinanced loan will use the current tiered rates based on your refinanced loan amount.

• Wait for renewal: When your loan reaches maturity, renewal will automatically use the current tiered rates based on your renewal amount.

Both options calculate your tier based on the new or renewed loan amount, so you could potentially access a better rate tier than your original loan.

Can I consolidate multiple loans to qualify for a lower rate tier?

Yes. You can refinance multiple existing loans into a single new loan. The consolidated loan will use tiered pricing based on the total combined amount. For example:

• Before: Two loans of $150K each (total $300K) at base rates

• After: One $300K loan qualifying for a better pricing tier

To consolidate, contact support@ledn.io 

How does this interact with my Referral Discount?

Your referral discounts are applied on top of your tier rate. This means you receive the maximum possible benefit by combining both.

Are tiered rates available globally?

Yes, tiered pricing is available in all jurisdictions where Ledn operates. Rate values may vary by jurisdiction to reflect local regulations and market conditions, but the transparent tiered structure is the same everywhere.

Does a lower rate mean my Bitcoin is less safe?

No. All tiered rates apply to Ledn’s Custodied Loan model. Your Bitcoin remains 1:1 custodied, never lent out for interest, and protected by 8 years of proven security. A better rate at Ledn never means higher risk.

Where can I see the current tiered rates?

You can view the current rates at any time on the Ledn platform by navigating to your Ledn dashboard or the loan calculator. You can also see them on our website at ledn.io.

Once a loan has been issued, its amount cannot be increased. Each loan at Ledn is created as an independent agreement with its own collateral, maturity date, and terms.

If you wish to access additional liquidity, you would need to apply for a new loan for the extra amount you’d like to borrow.

Can I have more than one loan at the same time?

Yes. You can have multiple active loans with Ledn. Each loan will be treated separately, with its own collateral balance and loan agreement.

What if I want to use my existing collateral for a new loan?

If your current loan(s) qualify for collateral redemption, you may be able to redeem a portion of your existing collateral and use it to collateralize a new loan.

To redeem collateral for a new loan, the following conditions must be met:

• 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).

If your loan does not meet the requirements, you can always transfer new collateral for a new loan. 

Once your Bitcoin (BTC) collateral has been sent to your Ledn loan wallet address and verified on the blockchain, your loan disbursement process begins.

Typically, loan funds are disbursed within approximately 12 business hours after your collateral has been received and verified. Please note that your receiving bank’s processing times may affect when the funds appear in your account. Additionally, weekend or holiday processing may result in longer timelines for funds to reflect in your bank account. 

What happens after I send my collateral?

Collateral verification

Once your BTC transaction receives the required confirmations, our system automatically verifies the collateral amount and links it to your loan.

Your loan status will change from “Pending” to “Active” in your Loan dashboard once your loan has been disbursed.

Loan disbursement

• Stablecoin loans: Once verified, funds are typically disbursed within minutes. If you plan to withdraw the proceeds from the Ledn’s platform, we recommend selecting an “External address” during the loan application process to ensure your withdrawal is processed faster. 

• Fiat loans: For loans funded via bank wire, Ledn processes the disbursement within the next 12 business hours after collateral verification.

Please note that your receiving bank’s processing times may affect when the funds appear in your account. Additionally, weekend or holiday processing may result in longer timelines for funds to reflect in your bank account.

Confirmation

Once your loan has been successfully disbursed, you’ll receive a confirmation email and see your active loan details reflected in your Loans tab.

In some cases, we may reach out before disbursement to confirm your banking details and ensure everything is correct.

For more information you can reach out to our Client Success Team.

To comply with Anti-Money Laundering (AML) regulations, all loan disbursements and repayments must be made to and from bank accounts held under the same legal name as the Ledn account holder.

Disbursement Requirements

• Ledn can only send funds to accounts in the client’s name.

• Disbursements cannot be made to:

  • Accounts held by another individual or business.

  • “For Further Credit (FFC)” accounts or payment instructions.

  • Brokerage, investment accounts or crypto exchanges.

• For individual clients, funds can only be sent to a personal bank account.

• For corporate clients, funds must go to the company’s business account.

Important: Failure to provide Ledn with the proper banking account instructions will result in delays in receiving the funds and in some cases may take up to 30 days for the bank transfer to be returned to Ledn.

Repayment Requirements

• All loan repayments must come from a bank account under the same name as the Ledn account holder.

• Payments received from third-party, or FFC accounts will be rejected.

In Summary

Both disbursements and repayments must originate from and be sent to an account in the same legal name as the Ledn account holder. This ensures regulatory compliance and prevents transaction delays or returns.

Yes, you can download your loan agreement directly from your Ledn account. This document provides the full details of your loan, including the terms and collateral.

How Do I Access My Loan Agreement?

1. Log in to Your Ledn Account:
Go to www.ledn.io and log in to your account.

2. Navigate to Your Loan Dashboard:
Once logged in, click Loans in the main menu, then select B2X or Dollar Loans, depending on the type of loan you hold.

3. Select Your Loan:
Click on the specific loan for which you need the agreement.

4. View Your Loan Details:

Your loan details are displayed on the loan page.

5. Download Your Agreement:

In the Details panel, select Download agreement to download a PDF copy of your loan contract.

Additional Information

• Your loan agreement can also serve as proof of origin of funds for your bank or financial institution if required.
• If you experience any issues locating or downloading your agreement, please contact our Client Success Team through the Help Center for further assistance.

Loan Activity gives you a complete view of your individual loan, including funding details, loan agreement, performance, key thresholds, and transaction history.

What can I see in Loan Activity?

Loan Activity includes:

• Loan performance: View your loan’s current details and performance over time.

• Threshold prices: Review the Bitcoin prices associated with your loan’s key LTV thresholds.

• LTV history: See how your loan-to-value ratio has changed over time.

• Activity: Review loan funding details, repayments, collateral movements—including collateral added to or released from the loan—and liquidations, if applicable.

How do I view my Loan Activity?

1. Sign in to your Ledn account.

2. Go to Loans.

3. Select the loan you would like to review.

4. Open the Activity tab.

You will see a chronological record of activity for that specific loan.

Can I export my Loan Activity?

Yes. You can export your Loan Activity directly from the Activity tab.

Select Export activity, then choose the format you would like to download:

• CSV

• PDF

The export can help you maintain your own records and review your loan history more easily.

Does Loan Activity show all of my Ledn account activity?

Loan Activity is specific to the individual loan you select. To review another loan, open that loan and select its Activity tab.

For activity related to your Transaction Account, please refer to your Transaction Account history and statements.

Is Loan Activity a tax document?

Loan Activity is provided as a record of your loan activity. It is not tax, legal, or financial advice. We recommend consulting a qualified tax professional regarding your personal reporting obligations.

The Loan-To-Value (LTV) ratio represents the relationship between the loan amount and the value of the collateral used to secure the loan. At Ledn, loans are issued in either US Dollars (USD), Local Fiat or Stablecoins and are generally set at an initial LTV of 50%.

This means that the funds you borrow are equivalent to 50% of the value of your digital asset collateral. For example, if your collateral is valued at $10,000, you can borrow $5,000.

The LTV is an important factor in managing your loan, as it determines the health of your collateral in relation to market fluctuations.

You can also view how your LTV has changed over time in the LTV history section of your loan page. The Activity section shows the repayments and collateral movements that may affect your LTV, and can be exported as a CSV or PDF.

How is my LTV calculated?

Your Loan-to-Value (LTV) ratio is calculated using the following formula:

LTV = Outstanding Loan Balance / (Collateral Amount x Adjusted BTC Price)

The Adjusted BTC Price is the current market price of bitcoin less a 0.50% trade spread. This spread is factored into the price used to calculate your LTV, so it is already reflected in the LTV you see on your dashboard. No additional fee is applied if your collateral is sold during a repayment or liquidation.

For example, if you have a $5,000 loan secured by 0.1 BTC and the current bitcoin market price is $100,000, the adjusted price would be $99,500 (after the 0.50% spread). Your LTV would be:

$5,000 / (0.1 x $99,500) = 50.25%

What Causes Your LTV to Change?

Your LTV fluctuates primarily based on the market price of bitcoin. Since your loan is denominated in USD and your collateral is held in BTC, any change in the BTC price directly affects your LTV:

• If the BTC price drops, the value of your collateral decreases, causing your LTV to rise.

• If the BTC price rises, the value of your collateral increases, causing your LTV to fall.

Your LTV will also decrease if you make a partial repayment (reducing your outstanding balance) or add more collateral via a top-up.

What Happens if the LTV Increases?

If your LTV increases, it means that the value of your collateral has decreased in relation to the outstanding loan outstanding balance. In such cases, you will be required to take action to avoid potential liquidation.

To prevent liquidation, you can:

1. Add more collateral to your loan.

2. Make a partial repayment to lower the loan outstanding balance.

If your loan reaches specific LTV thresholds, you will receive email notifications prompting you to take action:

• At 70% LTV, you will receive an initial alert to add collateral.

• At 75% LTV, a follow-up reminder will be sent.

• At 80% LTV, an automatic liquidation of your collateral will occur to repay the loan outstanding balance.

For more details on how to manage an increasing LTV, please refer to our Help Center article:
Article: What Happens If the value of your collateral significantly decreases? 

What Happens if the LTV Decreases?

If your LTV decreases, it means that the value of your collateral has increased in relation to your loan outstanding balance. In this case, you may be eligible to redeem a portion of your collateral, provided that certain conditions are met.

Collateral can be redeemed as long as your loan maintains an LTV that meets Ledn's requirements for a healthy loan status. This process ensures that you can access your assets while keeping your loan secure.

For more information on how to redeem excess collateral, please visit our Help Center article:
How to Redeem Excess Collateral

Stay Informed and Manage Your Loan Effectively

To ensure your loan remains in good standing, we recommend regularly monitoring your LTV in your Ledn account. If you have any questions or need assistance, our support team is always available to help.

If the value of your collateral drops significantly, your loan’s LTV ratio increases, raising the risk of collateral liquidation.

Note: In traditional finance, these notifications are sometimes called "margin calls." At Ledn, we refer to them as LTV notifications. If you searched for "margin" or "margin call," this is the right article.

Monitoring and Alerts:

• Notifications: Ledn sends an email when your LTV exceeds 70%, advising you to add more collateral or repay part of the outstanding balance. These notifications are critical warnings. You should take action immediately upon receiving them.

• Additional Reminders: Further alerts follow if your LTV reaches 75%.

• You can monitor your loan’s LTV over time in the LTV history section and review any repayments or collateral movements in the loan’s Activity section. Loan Activity can also be exported as a CSV or PDF for your records.

Action Required:

When you receive an LTV notification, you have three options to bring your LTV back to a healthy level:

1. Enable Auto Top Up

2. Top up your loan: Deposit additional bitcoin collateral to increase the value backing your loan, which lowers your LTV.

3. Make a partial or full repayment: Reduce part or all of your outstanding balance using BTC loan collateral, stablecoins, or USD via ACH or wire transfer.  

   Repayments using BTC collateral are processed instantly once authorized. Before submitting, review the amount of BTC that will be sold and the projected impact on your outstanding balance, collateral balance, daily interest, and LTV.

Important: Sending collateral to your loan wallet does not immediately lower your LTV. The deposit must be confirmed on the blockchain before it is reflected in your loan's LTV and collateral balance.

Proactive Management: We strongly recommend that you regularly monitor your LTV and add more collateral even before reaching 70% LTV. 

Also consider enabling Auto Top-Up to remove the need to manually monitor and manage your open loans’ status during times of price volatility.

Automatic Liquidation at 80% LTV:

If your LTV reaches or exceeds 80%, Ledn will automatically sell a portion of your collateral to cover the outstanding loan balance. This is important to understand:

• Liquidation is automatic. It is triggered by the system and cannot be stopped once initiated.

• Liquidation is irreversible. Once your collateral has been sold, the transaction cannot be undone.

• A 0.50% trade spread is applied to the BTC price during liquidation.

• Any remaining collateral after the loan balance and accrued interest are covered will be returned to your Transaction Account.

Do not wait until 80% to take action. LTV can move quickly during periods of bitcoin price volatility.

Volatility Insulation is the name for the set of features that work together to protect your loan from bitcoin's price swings. Instead of a single safety net, it combines three layers of protection: flexible control to manage your loan manually, real-time visibility into your risk, and automated protection that acts before you have to.

Here's how it works:

Layer 1: Flexible Control

Instantly top up your loan from your Transaction Account, or repay in full or in part, whenever you want, with no penalties, hidden fees, or lock-up constraints.

Learn more: What is a Loan Top-Up?

Layer 2: Real-Time Visibility

Your LTV history chart, Performance Card, and Early Risk Alerts at 70% and 75% give you clear visibility into your loan's health, so you can act.

Learn more: What happens if the value of your collateral significantly decreases?

Layer 3: Automated Protection

Auto Top-Up monitors your loan 24/7 and moves BTC from your Transaction Account the moment your LTV touches 70%, no chart-watching required, so a drop in the price of BTC doesn't turn into a forced sale, as long as you have enough BTC available in your Transaction Account.

Learn more: What is Auto Top-Up and how does it work?

Product availability varies by jurisdiction.

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.

How Are Top-Ups Reflected in My Loan?

Once your BTC top-up has been confirmed on the blockchain and credited to your loan, your collateral balance will increase and your LTV will decrease.

You can review the completed top-up in the Activity section of the relevant loan. Loan Activity provides a chronological record of your loan’s collateral movements and other loan events, which you can export as a CSV or PDF for your records.

Important: Unconfirmed Deposits

If you are sending collateral from an external source, the bitcoin deposit must be confirmed on the blockchain before it is credited to your loan. Unconfirmed deposits will not lower your LTV. Please allow time for on-chain confirmations before relying on the top-up to protect your loan during volatility.

Auto Top-Up is a simpler and more intuitive way to manage your loans health. It monitors your loan LTV 24/7 and automatically rebalances your collateral helping protect you against market volatility. 

Features

• Portfolio-Level Protection: Enable Auto Top-Up at the portfolio level in your settings to automatically cover every eligible loan you hold and every new loan you open. You can still disable Auto Top-Up on individual loans even when portfolio-level protection is enabled.

• Per-Loan Control: Prefer a more hands-on approach? You can enable or disable Auto Top-Up on individual loans instead.

• Automatic Adjustments: When any enabled loan's Loan-to-Value (LTV) reaches 70%, funds from your BTC Transaction Account are automatically added to that loan's collateral wallet to bring its LTV back to 68%.

• Smart Rebalancing: If market volatility affects more than one loan at the same time, Auto Top-Up will automatically prioritize and rebalance loans based on their risk level.

• How to Enable: You can toggle Auto Top-Up at the portfolio level in your settings, or on a per-loan basis in your individual loan settings.

If your BTC Transaction Account does not hold enough balance to restore your loan's LTV to 68%, the system will use any available BTC to top up your loan's collateral.

If there is no available BTC balance in your Transaction Account, you will receive an email notification informing you that the Auto Top-Up could not be completed due to insufficient funds.

We recommend periodically checking your Auto Top-Up status and ensuring your BTC Transaction Account is appropriately funded, especially during periods of market volatility.

In that case, you will need to perform a manual top-up.

You can review completed Auto Top-Ups, along with your updated collateral balance and LTV history, in the Activity section of the relevant loan.

 

Ledn offers flexible options to help you repay your loan in full. You can repay your loan using:

• Your BTC loan collateral

• Your USDC, USDT, or USAT Transaction Account balance

• USD via ACH or wire transfer

You can repay your loan early without a prepayment penalty.

Once completed, your repayment will appear in the Activity section of the relevant loan, where you can review and export the record as a CSV or PDF.

For information about paying only part of your outstanding balance, please refer to How Do Partial Loan Repayments Work?.

Important: Ledn will never automatically debit your bank account. All ACH and wire repayments must be initiated by you.

1. Repay Using BTC Collateral

You can sell the portion of the BTC collateral required to repay your outstanding loan balance. The repayment is processed instantly once authorized.

To repay using your collateral:

1. Log in to your Ledn account.

2. Go to the Loans page and select the loan you want to repay.

3. Click Repay.

4. Select Repay with your collateral.

5. Select Full.

6. Review the repayment information displayed.

7. Click Submit and authorize the repayment using your MFA method.

Before submitting, the platform will show:

• The amount of BTC that will be sold

• The applicable sell price

• The outstanding balance being repaid

• The BTC remaining after the repayment

Once authorized, the required amount of BTC will be sold, the outstanding balance will be repaid, and the loan will be closed. Any remaining BTC collateral will be returned to your BTC Transaction Account.

Important: Repayments using BTC collateral are final and cannot be reversed. Carefully review all repayment information before submitting.

Availability for U.S. Residents

The Repay with your collateral option is currently available in the following U.S. 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.

This list may change periodically, and Ledn cannot guarantee that a jurisdiction will remain eligible.

2. Repay via ACH or Wire Transfer

You can repay your loan by sending a USD payment from your bank account.

Payments must come from a bank account held under the same legal name as your Ledn account. For more information, please refer to Loan Disbursements and Repayments: Same-Name Bank Account Required.

Wire transfers must be sent in USD. Payments sent in another currency cannot be processed and may result in delays.

USD repayments can be made from U.S. bank accounts via ACH or wire transfer. Clients outside the United States must complete their repayment through an international wire transfer in USD.

How to Repay via ACH or Wire Transfer

1. Log in to your Ledn account.

2. Go to the Loans page and select the loan you want to repay.

3. Click Repay.

4. Select Wire Transfer as the payment method.

5. Use the banking details provided to initiate the payment from your bank.

6. Once the payment has been sent, confirm the full repayment in the platform.

After sending your payment, we recommend submitting your payment receipt or confirmation to our Client Success team. This helps us identify and apply your repayment more quickly.

Processing times may vary depending on your bank and can take up to five business days.

3. Repay Using Stablecoins

You can repay your loan using the USDC, USDT, or USAT available in your Transaction Account.

To repay using stablecoins:

1. Log in to your Ledn account.

2. Go to the Loans page and select the loan you want to repay.

3. Click Repay.

4. Select USDC, USDT, or USAT as your payment method.

5. Select the full repayment amount.

6. Review and confirm the repayment using your MFA method.

The funds will be deducted from your Transaction Account and applied to your loan almost instantly.

Ensure that your Transaction Account has a sufficient stablecoin balance before initiating the repayment. If necessary, refer to How do I deposit funds into my Transaction Account?

Important: Repayments are final and cannot be reversed. Always review the amount and repayment details before submitting.

A partial loan repayment allows you to repay part of your outstanding balance without closing your loan. This can reduce your daily interest charges and lower your Loan-to-Value (LTV), giving you greater flexibility when managing your loan.

What Methods Can I Use to Make a Partial Repayment?

You can make a partial repayment using:

• BTC loan collateral: Sell part of the BTC securing your loan and apply the proceeds directly to your outstanding balance.

• Stablecoins: Use the USDC, USDT, or USAT available in your Transaction Account.

• USD via ACH or wire transfer: Send a USD payment using the banking instructions available in your account.

Availability may vary depending on your jurisdiction.

Once completed, your partial repayment will appear in the Activity section of the relevant loan, where you can review and export the record as a CSV or PDF.

What Are the Benefits of Making a Partial Repayment?

• Lower LTV: A partial repayment reduces your outstanding balance and can help lower the risk of liquidation.

• Reduced interest charges: Your repayment first covers any accrued interest and fees. The remaining amount is applied to your loan principal, reducing the daily interest charged.

• Flexible timing: You can make partial repayments before your loan’s maturity date without an early repayment penalty.

How Do I Make a Partial Repayment Using BTC Collateral?

You can make an instant partial repayment by selling part of the BTC collateral securing your loan.

1. Log in to your Ledn account.

2. Go to the Loans page and select the loan you want to manage.

3. Click Repay.

4. Select Repay with your collateral.

5. Enter the amount you want to repay in USD.

6. Review the information displayed before submitting the repayment.

The repayment screen will show your current and projected:

• Outstanding balance

• Collateral balance

• Daily interest

• LTV and loan status

7. Review all the information carefully.

8. Click Submit and authorize the repayment using your MFA method. 

Once authorized, the required amount of BTC collateral will be sold and the proceeds will be applied to your loan instantly.

Important: Repayments using BTC collateral are final and cannot be reversed. Always review the repayment amount, BTC amount to be sold, and projected loan information before submitting.

How Do I Make a Partial Repayment Using Stablecoins?

1. Log in to your Ledn account.

2. Go to the Loans page and select the loan you want to manage.

3. Click Repay.

4. Select USDC, USDT, or USAT as your payment method.

5. Enter the amount you want to repay.

6. Review and confirm the repayment by using your MFA method.

The funds will be deducted from your Transaction Account and applied to your loan.

Ensure that your Transaction Account has a sufficient balance before initiating the repayment.

How Do I Make a Partial Repayment via ACH or Wire Transfer?

When submitting your payment, include your Loan ID and repayment instructions in the Reference/Memo field. This information is required so that Ledn can identify and apply your repayment correctly.

You can find your Loan ID on your loan details page and in the loan table.

1. Log in to your Ledn account.

2. Go to the Loans page and select the applicable loan.

3. Click Repay.

4. Select Wire Transfer as the payment method.

5. Use the banking details provided to initiate the payment from your bank.

Wire transfers must be sent in USD. Payments sent in another currency cannot be processed and may result in delays.

USD repayments can be made from U.S. bank accounts via ACH or wire transfer. Clients outside the United States must complete their repayment through an international wire transfer in USD.

Important: Do not confirm a full loan repayment in the platform when making a partial ACH or wire repayment. Doing so may cause the system to treat the payment as a loan closure. If you did, please contact Client Success and we will reset the repayment method.

After sending your payment, we recommend submitting your payment receipt or confirmation to our Client Success team. This helps us identify and apply your partial repayment more quickly.

Ledn will never automatically debit your bank account. All ACH and wire repayments must be initiated by you from a bank account held under the same legal name as your Ledn account. Loan Disbursements and Repayments: Same-Name Bank Account Required 

What Are the Minimum Partial Repayment Amounts?

• Stablecoins: The minimum repayment is 100 stablecoins.

• USD via wire transfer: The minimum repayment is $1,000 USD.

• BTC collateral: 100 $ or its equivalent in USD.  

Repayments that reduce the outstanding loan balance below $500 are not supported.

Are There Any Fees?

• Stablecoin: No fee.

• USD wire: The receiving bank charges a $6.11 fee for partial repayments, which is deducted from the amount received.

• BTC collateral: The transaction details will be displayed for your review before you submit the repayment.

How Long Does a Partial Repayment Take?

• BTC collateral: Processed instantly once authorized.

• Stablecoins: Processed instantly once confirmed.

• ACH or wire transfer: Processing may take several business days, depending on your bank.

Are There Limits on How Often I Can Make Partial Repayments?

There is no limit on how often you can make partial repayments.

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

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

• Redemption is not available when the loan is within 30 days of its maturity date

• 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.

• Once completed, your collateral redemption will appear in the Activity section of the relevant loan, where you can review and export the record as a CSV or PDF.

Renewing and refinancing your loan

At Ledn, you can keep your loan going without disruption. When your loan reaches maturity, it can renew automatically into a new 12-month term. You can also refinance into a new loan before maturity to adjust your terms or lock in current rates. As long as your loan is eligible, both happen smoothly, and you keep your Bitcoin throughout. 

Important update, effective January 1, 2027
Starting January 1, 2027, clearing your accrued interest and fees ("Accrued Fees") in full becomes a condition for your loan to renew or refinance into a new term.

• Your principal rolls over. You are not required to repay any outstanding principal to renew or refinance. It continues into a new 12-month term.

• No monthly payments. Interest still accrues daily and together with accrued administration fees, must be paid in full to renew or refinance. 

You can read the full 2027 update guide here.

What makes a loan eligible for renewal or refinancing

To renew automatically at maturity, or to refinance into a new 12-month term before maturity, your loan must meet all three of the following:

1. Eligible jurisdiction. You reside where Ledn loan products are supported and your loan meets any applicable product conditions (for example, minimum loan amount). See the list here.

2. LTV below 65%. Your loan-to-value ratio is below 65%.

3. Accrued Fees cleared. All accrued interest and administrative fees are paid in full. This condition takes effect January 1, 2027.

For refinancing ahead of maturity, your loan must also have been active for at least 30 days.

What happens at maturity

• Scenario 1 - All three conditions met. Your outstanding principal renews automatically into a new 12-month term at currently posted market rates. There is nothing for you to do.

• Scenario 2 - Accrued Fees unpaid, or LTV at or above 65% (in an eligible jurisdiction). An automatic backstop applies. Ledn first uses any stablecoin balance in your Transaction account toward your Accrued Fees, then sells the minimum amount of BTC needed to cover the rest and, if necessary, to bring your LTV down to 64%, so your remaining principal can still renew into a new term. We give you advance notice before this happens.

• Scenario 3 - Ineligible jurisdiction. Your loan will not renew automatically. See "If your loan is not eligible" below.

Your renewed or refinanced loan may carry a new administrative fee and interest rate, based on Ledn's pricing then in effect for your loan amount.

How to pay your Accrued Fees

You can clear your Accrued Fees on or before your maturity date in any of these ways. Available options may vary by region, please see this article for more information.

• Automatic stablecoin deduction (recommended). Keep enough stablecoins in your Transaction account at maturity, and Ledn applies that balance to your Accrued Fees automatically, so your loan renews seamlessly.

• Ledn Trade. Convert other digital assets to USDC, USAT or USDT before maturity.

• Borrow against new BTC. Post new BTC collateral to take a new loan, directing the proceeds to your stablecoin Transaction account to cover your fees.

• Borrow against existing collateral. Release collateral from an existing loan at maturity (up to 50% LTV) to fund a new loan that clears your fees.

• USD bank wire. Allow up to 5 business days for processing before your maturity date.

How to lower your LTV

If your LTV is at or above 65%, you can bring it below 65% before maturity by:

• Adding more BTC collateral.

• Making a partial loan repayment.

Refinancing before maturity

You can refinance a loan once it has been open for at least 30 days. Refinancing lets you adjust your terms and secure updated rates based on currently posted pricing. The same conditions as above apply in order to be eligible for refinancing prior to your loan’s maturity date.

Refinancing or renewing does not release additional fiat or unlock collateral automatically.

If your loan is not eligible

Automatic renewal will not occur if you are located in a jurisdiction where Ledn loans are restricted or product conditions are not met. Regional status can change over time, so please check the eligibility page regularly. 

If your loan is not eligible for automatic renewal and you do not repay it manually, it will be liquidated on its maturity date at 11:59 PM (system time). There is no grace period beyond your maturity date, so please take action before then.

What is changing, and why?

Today, a loan can be refinanced or rolled into a new term at maturity even if accrued interest and fees are unpaid. From January 1, 2027, those accrued interest and fees (your “Accrued Fees”) must be cleared before your loan can be renewed or refinanced. As long as your Accrued Fees are paid and your loan is below 65% LTV, your loan will keep renewing into a new 12-month term automatically, just as it does today.

The requirement to be at or below 65% LTV to renew is not new. It already applies today. The only change on January 1, 2027 is that your accrued interest and fees must be cleared.

This covers accrued interest and fees only. You are not required to repay any of your loan principal until you choose to close your loan. That does not change.

As Ledn has grown, we have evolved our funding sources toward large-scale institutional instruments, including the investment-grade, asset-backed securitization we issued earlier this year. Collecting interest and fees as loans renew or refinance aligns our loan book with that funding structure and makes Ledn more resilient, while keeping your experience at renewal seamless.

When does this take effect?

The change applies to any loan that matures or is refinanced on or after January 1, 2027. Loans continue exactly as they do today until then.

If your loan matures before January 1, 2027, it will renew into a new 12-month term under the current rules, and the new requirement would only apply at its following renewal.

Does this mean I now have to make monthly interest payments?

No. This change does not introduce monthly payments, and nothing changes month to month.

Interest is still only settled when your loan reaches maturity and rolls into a new term. This update simply means your accrued interest and fees are cleared at that point so your loan can roll. Keeping your stablecoin Transaction account funded ahead of time is the simplest way to be ready (see below).

Do I have to sell my Bitcoin to pay this?

No. You can cover your accrued interest and fees from a stablecoin balance, by taking a new loan against your collateral, or by USD bank wire, none of which involve selling. A partial sale of BTC only happens as a last-resort backstop if you take no action by maturity, and any of the other methods avoids it entirely.

Do I need to repay any of my loan principal?

No. This applies only to your accrued interest and fees. As today, you are never required to repay principal until you choose to close your loan.

What are my “Accrued Fees”?

Your Accrued Fees are only the interest and fees that have built up on your loan since it was opened or last renewed and remain unpaid when it reaches maturity. They do not include your loan principal. You can see them in your account, and we will flag them ahead of each maturity.

What do I need to do at maturity?

Pay from your stablecoin balance (recommended). The simplest way to be ready is to keep enough USDC or USDT (subject to availability in your jurisdiction) in your Transaction account to cover your Accrued Fees. If you hold enough at maturity, we can automatically apply it so your loan renews.

If you need to add stablecoins to your account, you have the following options:

1. Deposit stablecoins: fund your Transaction account as you do today.

2. Purchase stablecoins: use Ledn’s Trade function to add USDC or USDT to your account.

3. Borrow against new BTC: add collateral and take a new loan, directing the proceeds to your Transaction account to cover your accrued interest and fees.

4. Borrow against collateral you already hold: At maturity, you can release collateral from an existing loan, up to a maximum of 50% LTV, to take a new loan, directing the proceeds to your stablecoin Transaction account to cover your Accrued Fees.

Make a fiat payment. If you prefer, you may pay in USD by bank wire. Please allow up to 5 business days for us to process your wire, so start well before your maturity date.

Refinancing before maturity. If you choose to refinance your loan ahead of maturity, all of the same options are available to you.

What payment methods are available in my region?

Availability of some payment methods depends on your region, and we are expanding support ahead of the January 1, 2027 effective date.

Most regions: the stablecoin Transaction account and all of the options above will be available.

European Union and US: 

• For countries and states without stablecoin Transaction account availability today, we expect to offer the stablecoin Transaction account and all four of the options above by the time this policy takes effect. We will let you know as your region is enabled.

• You will be able to make a fiat payment via wire.

Canada: 

To make this possible in your region, we are enabling stablecoin deposits. This is new: in the 30 days before your loan's maturity date, you will be able to deposit stablecoins to your account, and we will apply that balance at maturity to renew your loan, with nothing more for you to do.

• Deposit USDC. You will be able to deposit USDC to your Ledn account to cover your Accrued Fees. Deposits will be enabled 30 days before your loan’s maturity. Depositing enough to cover your Accrued Fees before your maturity date is the simplest way to keep your loan renewing smoothly.

• Borrow against collateral you already hold: At maturity, you can release collateral from an existing loan, up to a maximum of 50% LTV, to take a new loan, directing the proceeds to your stablecoin Transaction account to cover your Accrued Fees.

• Make a fiat payment: If you prefer, pay in USD by bank wire. Please keep in mind Ledn may require up to 5 business days to process your wire.

If you are not sure what applies to your region, our team can confirm.

When exactly does this need to be paid?

As interest and fees accrue every day, your Accrued Fees are cleared on your loan’s maturity date. If you keep enough stablecoins in your Transaction account, we can apply it automatically at maturity. With the other methods, you will need to act ahead of the maturity date, and a bank wire can take up to 5 business days. That is why we recommend keeping your stablecoin Transaction account funded.

Can I pay my interest before maturity?

Yes. You can make a payment toward your loan at any time, as often as you like, with no penalty. Payments are applied to your accrued interest and fees first, and your principal second, so you can keep your accrued interest low, or clear it entirely, well before your maturity date rather than letting it build up.

What if I have multiple loans?

While applying the payment from your stablecoin account will be automatic, we know some clients will want to consolidate loans to further simplify the process.

If you have multiple loans with Ledn and would like to consolidate them please get in touch with our team at support@ledn.io. To avoid delays, we encourage all clients to do this prior to November 30, 2026.

What happens if I take no action?

If you take no action, there is an automatic backstop. At maturity,  if there is an insufficient stablecoin balance in your Transaction account to cover all your Accrued Fees, we will first apply any stablecoin balance towards the Accrued Fees, then sell the minimum amount of BTC needed to pay your remaining Accrued Fees and, if necessary, bring your loan down to 64% LTV, so that it can roll into a new term. We will always give you advance notice beforehand in our loan renewal offer emails. It is a fallback, never a surprise, and any of the options above avoids it entirely.