CRYPTO CREDIT LINES

Unlike traditional loans that consider your credit score, Nexo offers crypto-backed credit lines, using your digital assets as collateral. In essence, you receive funds in exchange for holding your crypto with Nexo.

Once you top up, you can immediately access your credit line by:

• Withdrawing funds straight to your bank account. You can choose between 40+ currencies.
• Withdrawing USDT or USDC to your Nexo account.

To open a credit line, you need to:

1. Open the Nexo platform or the Nexo app.
2. Top up crypto assets and complete verification.
3. Tap the “Borrow” button оn the Dashboard screen to withdraw.

Visit our Help Center for more detailed information.

The Nexo crypto-backed credit lines are quick and you will receive your funds on the same or the next day.

The processing time is as follows:

• Local transfers: 1 business day
• International transfer: 3 to 5 business days
• USDT (Tether) and USDC (USD Coin): usually takes no longer than half an hour to receive the funds.

Your interest rate depends on your Loyalty Tier, which is determined by the ratio between the value of your NEXO Tokens against the rest of your portfolio:

• Base: No NEXO Tokens are needed; interest on your outstanding credit line balance is 18.9%.
• Silver: The ratio of the NEXO Tokens in your account against the rest of your portfolio must be at least 1%​​​​​​; interest on your outstanding credit line balance is 17.9 %.
• Gold: The ratio of the NEXO Tokens in your account against the rest of your portfolio must be at least 5%; interest on your outstanding credit line balance is 13.9% if your LTV is above 20% and 5.9% if your LTV is below or equal to 20%.
• Platinum: The ratio of the NEXO Tokens in your account against the rest of your portfolio must be at least 10%; interest on your outstanding credit line balance is 10.9% if your LTV is above 20% and 2.9% if your LTV is below or equal to 20%.

To learn more about how our Loyalty Program works, click here.

A credit line’s loan-to-value (LTV) ratio determines the amount of crypto collateral you need in order to take out a crypto credit.

LTV is calculated as the ratio between the crypto credit amount in USD and the value of the collateral in USD, expressed as a percentage.

Example

Crypto credit amount: $5,000

Value of collateral: $10,000

LTV (%) = ($5,000/$10,000)*100% = 50.0%

For the exact LTV for each digital asset, visit our Help Center.

If your collateral's value increases, your credit line limit also goes up. You’re free to withdraw more or leave your current credit line as is.

You can also use the extra value of your crypto to pay off part of your credit. If your assets have met your price target, then you can:

• Place an order in the Nexo app to sell a fraction of the crypto assets in your account.
• Repay part or all of your outstanding balance. You can learn about repayments in our support article.

If your collateralized assets decrease in value, your loan-to-value ratio (LTV) will rise. You will receive a minimum of three margin calls (via email) when the LTV increases to 71.4%, 74.1%, and 76.9%.

If the value of your collateral continues to drop and your LTV reaches the 83.33% mark, the Nexo blockchain oracle may initiate partial automatic repayments to rebalance the loan-to-value ratio back within limits. The blockchain oracle will sell as little as possible, so you retain as much of your crypto as possible.

To avoid this scenario, top up more assets and enable our Automatic Collateral Transfer feature, allowing the Nexo blockchain oracle to automatically transfer a small portion of your assets from the Savings Wallet to the Credit Line Wallet, thus keeping your credit line health in check.

Nexo is raising the bar for the entire blockchain space by utilizing the most rigorous KYC and AML policies, impeccable risk assessment, data protection, and enhanced cybersecurity.

Our multifaceted approach includes:

• Military-grade 256-bit encryption for your Nexo account.
• Storage in Class III vaults through leading blockchain custodians, including Ledger Vault, Fireblocks, and others.
• Custodial insurance from our partners via Lloyd’s of London and Marsh & Arch.
• ISO/IEC 27001:2013 certificate ensuring Nexo’s platform infrastructure is of the highest standard.

You can learn more about our platform infrastructure and fundamentals-first model here.