CoinLoan is an innovative lending platform where crypto assets are used as collaterals. Any user can act as a lender or a borrower.
In our platform, any user can act as a lender or a borrower.
The lender deposits fiat funds through international/local bank transfers or bank cards and creates applications for providing loans on favorable conditions (terms, interest rates) individually. Alternatively, s/he may delegate this duty to our system which fulfills it continuously in a fully automatic mode, so the user does not have to create and continuously control applications manually. If the borrower does not repay the funds, the system will automatically liquidate (sell) the pledged crypto asset and return the funds to the lender (including the interest rate), thus warranting absence of risks and full repayment of funds.
The borrower deposits crypto asset funds then creates an application for receiving a loan in the amount that does not exceed 70% of the current market value of the collateral. This limitation has been created for preserving the crypto assets of the borrower and reducing risk related to the high volatility of the crypto asset market. After this s/he easily and quickly withdraws fiat funds, then repays and takes back his/her crypto asset in full amount.
Because we guarantee lenders a full repayment of funds and risk absence; the interest rate does not include risks of default.
A crypto asset is a cryptocurrency (Bitcoin, Ethereum, etc.) and tokens (ERC20, WAVES, etc.).
We plan to perform a global market reach. The detailed list of countries will be published later.
A borrower can pay a platform fee of 1 CLT for borrowing a $10,000 loan for 1 month. For loans covering a longer time horizon, CoinLoan will use a formula to calculate platform fee. It must be noted that the longer the loan term, the lower the monthly fee.
The lender will pay a fee equal to 10% of the income received from the accrued interest. You can find more details in the next answer.
In our case, SCO (Secondary Coin Offering) is a limited token sale after the official launch of the platform. SCO will be held only if the funds for further platform development are needed (e.g., for entering new markets). The sale will only be performed on our platform at a price equal to $10. If the market price of the token (CLT) is above $10 it will be sold at market price.
We are not predicting the market value of CLT. After the official launch of the platform during the SCO the tokens will be sold at a price not below $10 for 1 CLT. Demand for the token is generated in the following ways.
First, the lenders will be charged 10% of their income (i.e., accrued interests). Here’s an example: Let’s assume that the lender has provided a $10,000 loan at 15% and gained $1,500 as interest. These $1,500 will be charged a 10% platform fee. This is a charge of $150 (a low fee for the full safety of funds). But the lender will be able to pay 15 CLT instead of $150 expressed as 1 CLT >= $10. Therefore, it will be more profitable for the lenders to pay the platform fee in tokens. Note: The fee will be 10 times lower for Pre-ICO participants who have bought tokens at $1.
Second, as earlier stated, borrowers pay a platform fee when borrowing loans. Unlike lenders, they cannot choose to pay in fiat.
No, we are not. After the token price on the market (crypto-exchanges) exceeds $10, we will also correct the rate inside the platform. The token price at SCO and the lender’s fee will be based on this rate.
All unsold tokens will be sold at SCO in limited lots only after the official launch of the platform and at a price not below $10.
All tokens paid/redeemed as a platform fee will be burnt.
On November 21, 2017, CoinLoan was successfully granted a European license by the Register of Economic Activities (License No.FIA000071). This license allows legal operation of fiat, crypto and alternative means of payment.
After launching the platform we plan to cover most countries.
The lender can provide loans in major fiat currencies only (USD, EUR, etc.). The borrower can also borrow loans in fiat currencies only. Cryptocurrency is used as a collateral only.
All loans provided on the platform are secured on the borrower’s crypto-collateral (e.g., Bitcoin, Ethereum or other cryptocurrencies). During the loan term, the crypto-collateral will be stored in the safe CoinLoan vault. If the borrower does not repay the loan, the system will automatically sell/liquidate the crypto-collateral and return the funds to the lender in full.
The platform will not provide a pre-set interest rate. It will be fully market-dependent. The lender will set the interest rate in his/her loan application, and the borrower will state the desired interest rate for getting a loan. The system will automatically bring the matching applications together.
Yes. After the ICO ends, we continue with the licensing the company. Further, we will regularly publish reports on both legal and technical progress made. The reports will be published at least once a month at a minimum. However, we expect to produce reports on a weekly basis. Transparency is very important to CoinLoan.
After ICO we plan to list our tokens on 2-3 exchanges.
It's possible to buy CLT tokens for Bitcoin, Ethereum and also for other cryptocurrency supported by ShapeShift.io.
After the project launch, during SCO 1 CLT will cost not lower than $10.
During the Pre-Sale the token price will be several times lower than at ICO so you would be able to buy a limited amount of tokens at a lowest price.
It will be possible to use CLT tokens for paying the fees for borrowing and lending.
Also, it will be possible to borrow loans secured on CLT tokens without any fee.
A CoinLoan Token (CLT) is an ERC-20 compatible token based on the Ethereum smart-contract. The main function of CLT is to pay the platform fees. This covers fees for borrowing and providing the loan. Also, there is the option to use CLT as the collateral when taking out a loan. If the borrower uses CLT as collateral there will be no platform fee, the borrower will only be charged the interest on the loan. To calculate the the maximum loan amount given a CLT collateral, CoinLoan will use the market value of the token combined with a LTV (Loan-to-value ratio) of 80%. However, when borrowers use other crypto-assets as collateral, the LTV is 70%.
To start providing loans, please sign up at CoinLoan platform, replenish the personal account of your profile with fiat currency, choose the conditions of providing loans profitable for you and create an application within a few minutes.
At CoinLoan platform all loans are secured by crypto assets for borrowers. In case of non-repayment of the loan, the pledged crypto asset will be automatically liquidated (sold) by the system and the funds including the interest rate will be fully repaid to the lender.
Minimal loan amount - $50.
The maximum loan amount is unlimited.
Minimal loan term - 1 day.
Maximum loan term - 60 months (5 years).
You can provide a loan in the following fiat currencies: USD, EUR, GBP, CNY, JPY, RUB, CHF, PLN, CZK.
We will be working on extending this list.
You can state the interest rate yourself when creating a lending application. The application will be processed in case of presence or introduction of counter-offers under suitable conditions.
Yes, you can provide an unlimited number of loans within your budget.
You can deposit and withdraw fiat funds through bank transfer (SWIFT, SEPA) and also using local payment methods.
No, s/he does not. We guarantee full repayment and absence of risks because all loans are secured on crypto assets of the borrowers.
You may get a loan for any purpose.
To get a loan, please sign up at CoinLoan platform and deposit the required amount of the crypto asset which will be used as a collateral to your personal account. Then create an application for receiving a loan and withdraw the received funds in any way convenient for you (to a bank card, by bank payment, etc.).
It's up to you. You can receive fiat funds in the amount of 10-70% of the crypto asset market value.
The borrower does not bear any risks, providing that all loan obligations are fulfilled to the full extent, and the percentage ratio between the loan amount and the crypto asset used as a collateral is maintained.
Minimal loan amount — $50. The maximum loan amount is unlimited.
Minimal loan term — 1 day. Maximum loan term — 60 months (5 years).
A crypto-asset for securing the loan is the only requirement.
When the platform is launched, you will be able to secure the loan on such cryptocurrencies as Bitcoin, Ethereum, Litecoin, Dash, ZCash, Ripple. We plan to extend the list of supported crypto-assets and add popular ERC20 tokens.
You can borrow a loan in the following fiat currencies: USD, EUR, GBP, CNY, JPY, RUB, CHF, PLN, CZK. We will be working on extending this list.
Yes, you can prepay the loan at any time without any penal sanctions.
You can withdraw your funds immediately after receiving the loan. The time within which the funds will be credited depends on the chosen method and can be instant (in case of using our cards) or comprise up to 3 working days (in case of an international bank transfer).
If the market value of the pledged crypto asset (loan collateral) changes, you will get several notifications via Email, SMS or receive Push-notifications from our mobile app.
Our platform does not provide predetermined interest rates, they are fully market-dependant and are set by lenders and borrowers.
Yes, you can borrow an unlimited number of loans within the market value of your crypto asset.
Most applications are processed immediately. If the conditions of the application for borrowing a loan differ significantly from the market conditions, then the period of processing the application will depend on counter-offers from lenders.
Most crypto assets will be stored on cold wallets. The other operational part will be stored on highly secure multi-sig wallets with distributed key storage.
If you cannot make the regular payment of the loan, the system will begin to liquidate the collateral (crypto-asset) automatically in increments. Also, you can refinance the loan at another lender by paying the accumulated interest rate.
Currently, we do not provide such an option.
Let's consider the case when you have 1 BTC, for example, and you've found a prospective (to your opinion) ICO which received fiat funds for the token purchase. Let's take ICO Polybius as an example.
When Polybius was making its ICO, Bitcoin market value comprised $2000. At CoinLoan platform you receive a loan secured on 1 BTC at the current market exchange rate ($2000) and get funds in the amount of $1200 (60%). Then you buy 120 PLBT tokens for $10, and thus you have a one more crypto asset in your portfolio. Alternatively, you could have done another way: buy 200 PLBT tokens for 1 BTC. As a result, after ICO the PLBT token price fell twice ($5), and the BTC exchange rate increased twice ($4000).
In view of this situation in the first case, if you borrow a loan to invest into another ICO, currently you would have owned 1 BTC (which costs $4000 at the moment) and 120 PLBT ($5 each). As a result, you own $4000 (with the debt which comprises $1200 + 1.5% of overpayment = $1218), and you have PLBT tokens in your portfolio with current total value $600. After repaying the loan, you will own $4000 - 1218 + 600 = $3382 of net funds and locked-in profit which comprises $1382, although the PLBT exchange rate has dropped.
If you bought 200 PLBT for 1 BTC, you would have become an owner of an asset $1000 worth and locked-in loss which comprises $1000.
This pattern represents only one of the possible ways of using the CoinLoan platform.
In this case, market data as of 20/08/2017 were used.