Unlike traditional loans that consider your credit score, Nexo offers crypto-backed Credit Lines, using your digital assets as collateral. Once you top up, you can immediately utilize your Credit Line. You have two options for your loan.

• Receive funds straight to your bank account. You can choose from multiple currencies.
• Receive USDT or USDC to your Nexo account.

To utilize your Credit Line, you need to:

1. Open the Nexo platform or the Nexo app.
2. Top up crypto assets.
3. Tap the 'Borrow' button оn the app dashboard.

To learn more, visit our Help Center.

With the Nexo crypto-backed loans 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 and USDC: usually no longer than half an hour

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, visit our Help Center.

The 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 of each digital asset, visit our Help Center.

If your collateral's value increases, your Credit Line limit also goes up. You’re free to borrow 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. In normal circumstances, you may receive a minimum of three margin calls (via email and push notification) when the LTV increases to 71.4%, 74.1%, and 76.9% respectively. Note that in the event of a very sharp decrease in the value of your collateralized assets, the number of margin calls may be less.

If the value of your collateral continues to drop and your LTV reaches the 83.33% mark, partial automatic repayments may occur to rebalance the loan-to-value ratio back within limits. To make sure you retain as much of your digital assets as possible, only the minimally required amount of crypto will be sold.

To avoid this scenario, top up more assets and enable our automatic collateral transfer feature, to automatically move a small portion of your assets from the Savings Wallet to the Credit Line Wallet, thus keeping your Credit Line health in check.