Liquidity Terms

For the purposes of these Terms and Conditions:

• “Cashaa” refers to the Cashaa platform providing crypto-backed lending services.
• “Borrow Program” means the crypto-collateralized lending product offered by Cashaa.
• “Borrower” means any user who obtains a loan under the Borrow Program.
• “Collateral” means digital assets pledged by the Borrower to secure a loan.
• “Liquidity-to-Value (LTV)” means the ratio of loan principal to the market value of pledged collateral.
• “APR” means Annual Percentage Rate, accrued daily.
• “Margin Call” means a risk warning triggered when LTV reaches predefined thresholds.
• “Liquidation” means automatic sale or conversion of collateral when LTV reaches 80%.

The Borrow Program enables users to access stablecoin liquidity without selling their digital assets. Loans are fully over-collateralized and subject to automated risk controls.

Supported collateral classes:

• Bitcoin (BTC)
• Ethereum (ETH)
• Approved Top Altcoins as available within the Cashaa app (Revised at regular intervals)

3.1 BTC-Collateralized Loans

Loans backed by Bitcoin support the highest LTV options and durations up to 12 months.

Special rule: BTC loans initiated at 70% LTV trigger margin calls at 75%, due to the reduced buffer.

3.2 ETH-Collateralized Loans

Loans backed by Ethereum are capped at 50% LTV due to asset volatility.

3.3 Altcoin-Collateralized Loans

Supported assets: SOL, BNB, AVAX, MATIC, XRP, ADA, DOT, ATOM, LINK, TRX.

• Minimum loan amount: $500 equivalent
• Disbursement currency: USDT or USDC, at Borrower’s choice
• Admin fee: 1% of principal (minimum $20) deducted at origination

• Daily Accrual: Interest is calculated based on the APR and accrued daily on the outstanding principal.
• Payment Options: Borrowers choose to pay interest monthly or as a lump sum at the end of the loan term.
• No Early Penalties: Borrowers may repay the loan early and also pay only the interest accrued up to the date of repayment.
• Partial Repayments: Permitted at any time; payments are first applied to accrued interest and then to the principal.

• Collateral is locked for the duration of the loan
• Borrowers may add collateral at any time to reduce LTV
• Collateral top-ups are available 24/7

• Margin Call Trigger: When LTV reaches the asset-specific threshold (BTC: 70%/75%, ETH: 65%, Altcoins: 60%), automated notifications are sent via email and in-app.
• Borrower Action: To avoid liquidation, borrowers must either add more collateral (of the same asset type) or repay a portion of the loan principal.
• Automatic Liquidation: Triggered instantly if LTV reaches 80%. This is a system-driven event to ensure the recovery of loan value.
• Liquidation Fee: A fee of 2% of the liquidated amount is charged during the closure of the position.
• Surplus Return: Any collateral remaining after debt settlement, fees, and penalties is returned to the user's wallet within 24–72 hours.

In the event that repayment obligations (monthly interest or maturity principal) are not met, the following penalty structure applies:

1. Monthly Interest Overdue: A penalty of 5% of the overdue interest amount or $100, whichever is greater.

2. Maturity Principal Overdue: A monthly penalty of 5% of the total outstanding amount or $100, whichever is greater.

3. LTV Risk: Unpaid penalties and accrued interest increase the total debt, which may cause the LTV to reach the 80% liquidation threshold.

• Volatility: Borrowers bear all market risk related to the value of their collateral.
• Automation: Liquidation is automated and does not require borrower consent once the 80% threshold is breached.
• Availability: Collateral top-ups are available 24/7 to manage loan health.

• Fully automated, over-collateralized lending
• No native token holding requirements for tier benefits
• Transparent APR and fee structure