SAFE, SECURED AND TRUSTWORTHY CRYPTO LENDING
“The collaterals will be kept in cold wallet, and never ever be loan out or used by us or anyone else.”
At PLUTUSVC we fully understand the need for a safe, secured and trustworthy crypto lending partner. We have been a Venture Capital fund since 2016 in the blockchain space and have invested more than 120 Companies and projects. While many venture funds launch DeFi and many other yield earning businesses, PLUTUSVC have stick to pure token investment!
July 2022, the fund decided to enter the crypto lending space primarily because we saw that many existing crypto DeFi and lending Companies are not trustworthy. Therefore, we only provide Crypto Lending in the most traditional way:
Open an account at ABCC.com crypto exchange, the official custody agent of your collaterals.
PLUTUSVC loan liquidation only occurs when the LTV rate hits 80% or above. The borrower then have 24 hours to top-up the difference or repay a portion of the loan to lower the LTV.
In case of a liquidation, a portion of the collaterals will be liquidated but not the entire collateral until LTV rate return to 65%.
LTV 66% – 69% do not trigger margin call / liquidation
*This gap provides sufficient time for Borrower to top-up
LTV 70% – 79% trigger margin call
*Borrower will be notified by email
Liquidation LTV – 80%
* Borrower will be notified by email and have 24 hours to top-up the differences in spread
1. How do you calculate interest?
We calculate interest based on the financial background of the borrower including liquidity, ability to repay and LTV level and loan duration plus the volatility of the assets designated for collateralization purpose with consideration with prevailing market rate.
PLUTUSVC loan liquidation only occurs when the default rate hits 80% LTV of the contractual price.
The borrowers then have 24 hours to top-up the difference in the collateral crypto assets in custody. Liquidation of borrower assets will only be the difference of the spread only and not the entire collateralize asset.
2. How do you determine LTV level?
Liquidation LTV – 80%
*Borrower have sufficient time to top-up the differences in spread.
LTV 65% - 79% do not trigger liquidation.
*This gap provides sufficient time for Borrower to top-up.
3. How do you determine liquidation level?
The volatility of designated asset for collateral purpose e.g. BTC and ETH will be observed and on regular basis we will announce the prevailing liquidation level.
4. What information do you need to process a loan?
Name of applicant.
Passport / ID.
Crypto collateral: [BITCOIN] [ETHEREUM] [OTHERS]
Stable coins preferred: [USDT] [USDC]
Loan LTV: [30%] [40%] [50%] [60%] [65%]
Duration: [10 Days] [20 Days] [30 Days] [60 Days] [90 Days] [CUSTOM]
5. How long is the approval process?
Approval process is handled within 24 to 48 hours.
6. Can I apply for a longer margin call top-up period?
Standard top-up period is 24 hours. Other timeframe requires discussion with the loan team on case-by-case basis.
7. Who will hold the key of the collateralized asset?
ABCC will hold the key of the collateralized asset.
8. Do you do flash loans?
No. We do not do flash loan.
9. How are you managing risk of hacking?
For preferred choice of custodian platform, ABCC, they follow high standards in custody and security for its exchange process.