Loan agreement

This Loan Agreement (the "Agreement") sets forth the terms and conditions under which the Borrower receives a fiat currency loan secured by bitcoin (BTC) as collateral. By accepting this Agreement, the Borrower agrees to the following:

Loan Terms

• Loan Amount: As specified in the application.
• Interest Rate: Based on loan amount tier (annual percentage rate):
  • Loans under R250,000 - 19% APR
  • Loans R250,001 - R1,000,000 - 17% APR
  • Loans over R1,000,000 - 15% APR
• Loan Term: 12 months (fixed).
• Repayment Schedule: As selected (monthly interest payments or lump sum at maturity).
• Origination Fee: R5,250 (fixed, deducted at loan initiation).
• Collateral Addition Fee: 1% of the rand value of any BTC added as collateral (e.g. to cure a margin call), added to the outstanding balance.
• Rollover / Refinance Fee: 1% of the principal rolled into a new loan on refinance.
• Total Repayment Amount: Displayed in the loan summary.

Collateral

• Collateral Type: bitcoin (BTC).
• Amount Pledged: Communicated via email at approval.
• Loan-to-Value (LTV) Ratio: Maximum 50% at origination.
• Custody: Collateral is held in a 2-of-3 cold multisig wallet operated by named key-holders. The lender's application never holds private keys.
• Return of Collateral: Returned within two business days of full loan repayment and settlement of any outstanding fees.
• Margin Call Ladder:
  • 65% LTV - first margin call. 72-hour cure window begins. Borrower must top up BTC collateral or make a partial repayment to bring LTV below 65%. Failure to cure is an Event of Default.
  • 70% LTV - escalated margin call.
  • 75% LTV - final warning.
  • 80% LTV - partial liquidation. Part of the BTC collateral may be sold to bring the loan back to a 50% LTV.
• Notification channels:
  • 65% LTV - email
  • 70% LTV - email and SMS
  • 75% LTV - email, SMS, and phone call
  • 80% LTV (liquidation) - all channels

Repayment

• Currency: South African Rand (ZAR).
• Method: Electronic funds transfer (EFT) to the bank account details provided.
• Early Repayment: Permitted at any time with no penalty.
• Collateral Release: BTC collateral is returned within two business days after final repayment is confirmed.

Default

Events of Default include (but are not limited to):

• Missed payment beyond the grace period.
• Failure to respond to a margin call within the cure window.
• Providing false information during onboarding.

Remedies: The outstanding amount becomes immediately due. Collateral may be liquidated to cover losses.

Risk Acknowledgment

The Borrower understands that bitcoin is highly volatile and the value of their collateral may decrease. The Borrower accepts the risk of margin calls and liquidation. The lender does not provide financial, tax, or investment advice.

Legal & Compliance

The Borrower consents to identity verification and other Know Your Customer (KYC) procedures. The Borrower certifies that all submitted information is true and correct. This Agreement is governed by the laws of South Africa. Disputes are subject to the jurisdiction of the courts in the Republic of South Africa.

Consent & Acknowledgement

By accepting this Agreement electronically, the Borrower confirms that they:

• Have read and understood the terms above.
• Agree to be bound by this Agreement.
• Acknowledge the risks associated with bitcoin-backed lending.

This Agreement is deemed signed and binding upon electronic acceptance through the lender's platform.