Loan Management

Ledn offers flexible options to help you manage and repay your loan with ease. There are three ways to repay your loan: Using your collateral, a USD ACH/Wire transfer, or your USDC balance.

Important: Ledn will never automatically debit your bank account. All wire repayments must be initiated by you from your own bank, and be in USD.

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.

Wire transfers must be sent in USD only. Payments sent in any other currency cannot be processed and will result in delays.

USD repayments can be made from U.S. bank accounts via ACH or wire transfer. For clients outside the United States, repayments must be completed via international wire transfer in USD.

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:

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. Please ensure the transfer is sent in USD. 

5. Once done, click Confirm Transaction only if you are making a full repayment. Do not click Confirm for partial wire repayments, as this may result in the system treating the payment as a loan closure.

After sending your wire: We recommend proactively submitting your wire receipt or confirmation to our Client Success team via the Help Center. This helps us match and apply your payment more quickly, and reduces processing delays.

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.

How Are Top-Ups Reflected in My Loan?

Collateral top-ups are reflected through a reduction in your LTV and an increase in your collateral balance. They do not appear as separate transactional line items in your loan history. If you have topped up your loan but do not see a specific transaction entry, check your updated LTV and collateral balance instead.

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.

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 Ledn's pricing for your renewal loan amount. The renewal is based on the outstanding balance at maturity. See current tier rates at ledn.io or in your account at platform.ledn.io/loans

When Automatic Renewal Will Not Occur:

Your loan will not be automatically renewed if any of the following conditions apply:

• Your LTV exceeds 65% at the time of maturity.

• Your loan is an ETH-backed loan (ETH loans are not eligible for renewal).

• You are located in an ineligible jurisdiction (see list below).

Canada: Quebec, New Brunswick, Nova Scotia, Saskatchewan

United States: California, Louisiana

Europe: Germany, France, Italy

What Happens If My Loan Is Not Renewed or Repaid at Maturity?

If your loan reaches maturity and is not repaid, refinanced, or eligible for automatic renewal, it will be liquidated on the day of maturity at 11:59 PM (system time). There is no grace period beyond your loan's maturity date. Please ensure you take action before your loan's maturity date to avoid automatic liquidation.

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.

Your refinanced loan will use the currently posted rate for your new loan amount — so consolidating multiple loans into one larger loan may qualify you for a lower rate tier.

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

• 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.

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

Features

• Automatic Adjustments:
  When your Loan-to-Value (LTV) reaches 70%, funds from your BTC Transaction Account are automatically added to your collateral wallet to bring your LTV back to 65%.
• How to Enable:
  You can toggle the Auto Top-Up feature in your loan settings.

If your BTC Transaction Account does not hold enough balance to restore your loan’s LTV to 65%, the system will still withdraw all 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. Auto top up will also be enabled for your loans at this point.

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

In that case, you will need to perform a 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.

Wire transfers must be sent in USD only. Payments sent in any other currency cannot be processed and will result in delays.
USD repayments can be made from U.S. bank accounts via ACH or wire transfer. For clients outside the United States, repayments must be completed via international wire transfer in USD.

Log in to your Ledn account.

1. Go to your Loans page and click Repay.

2. Select Wire Transfer as the payment method.

3. You'll receive the banking details required to complete the wire from your bank. Please ensure the transfer is sent in USD. 

4. 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.

5. 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.

After sending your wire: We recommend proactively submitting your wire receipt or confirmation to our Client Success team via the Help Center. This helps us match and apply your partial payment more quickly and reduces the processing burden on both sides.

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

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.

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%.

Action Required:

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

1. Enable Auto 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: Pay down a portion (or all) of your outstanding balance. This directly reduces your 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.

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) or USD Coin (USDC) 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.

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.

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. Open the Loan Information Tab:
Select the Loan Information tab to view your loan details.

5. Download Your Agreement:
Click Download Agreement to get 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.

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

• USDC loans: Once verified, funds are typically disbursed within minutes. If you plan to withdraw the USDC off of Ledn’s platform, we recommend selecting an “External ERC-20 USDC 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.

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.

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. 

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.