Frequently Asked Questions

Crypto-backed AUD loans allow you to deposit crypto as collateral, and borrow Australian Dollars against your security/collateral. Similar to how traditional banks recognize property, gold and other assets, banks may give you a loan against these assets as a means to unlock cash/liquidity.

At this stage, Vield will only accept Bitcoin (BTC) and Ethereum (ETH) as collateral. More coins in the future will be added. Please feel free to get in touch with us if you’d like to see other assets added.

You can borrow a minimum of $2,000 and up to a maximum of $500,000 for a term of 12 months.

At this stage, Vield’s standard terms are 12 months. If you are looking for something more bespoke, we may be able to accommodate. Please reach out to support@vield.io.

LVR stands for Loan-to-Value-Ratio; this metric is key to understanding how Vield loans work. The formula for LVR is “total outstanding amount borrowed (including any accrued interest & fees) / market value of collateral) * 100”.

Vield issues loans up to a 50% LVR. If and when LVR reaches 65%, Vield will provide warnings notifying you to keep an eye out on your LVR ratio (and displayed in the Web portal/App). At 75% LVR, Vield will ask you to make a repayment whereby you would be required to pay-down some of your outstanding Loan to bring down your LVR to 65% or lower. You have the choice of also depositing more collateral to which would also bring your LVR down (your collateral will not be liquidated in this scenario). You have 3 business days to bring your LVR back into good standing (i.e. 65% or lower) otherwise you may be issued a notice of default.

At 85% LVR, Vield will issue you a default notice at which point, you will have 30 days to pay down the entire outstanding loan amount. Upon full repayment, Vield will release the collateral back to your nominated wallet address and your loan agreement will be terminated. You have the option of using the collateral to pay down the outstanding loan amount with any difference being returned back to you in BTC/ETH.

If, after you’ve been issued with a default notice and the LVR of your outstanding loan has improved to 65%, the notice will be void and your loan will be in good standing.

If no re-payment is made, Vield may at its discretion, retain the collateral in the wallet to cover the outstanding debt.You may consent to Vield selling your BTC automatically to prevent you from defaulting on your loan.

If you are depositing 1 BTC (at a value of $50,000), then you may request for a loan amount up to $25,000 (less any fees).

Vield charges a 2% origination fee at inception of the loan. For example, if you request for a $50,000 loan, the origination fee would be $1,000 which will be deducted from the loan amount and $49,000 will be deposited to your nominated bank account.

At launch, the rate is 13% APR. Interest is compounded daily.

You will be required to re-pay the interest quarterly (i.e. accumulated interest due at 3 months). You will also be required to make additional repayments if your LVR hits 75% to bring your LVR back to 65%.

You may be considered in default; Vield may retain a portion of your collateral to cover the interest repayment. A default notice may be issued to you and you have 30 days to pay down a portion/all of your outstanding loan.

You have 3 business days to bring your LVR back to 65% or better once LVR reaches 75%. At the end of the loan term, you will have 5 business days to repay back the final interest payment and principal.

If LVR exceeds 85% at any point in time, you will be issued with a default notice and have 30 days to pay down your outstanding loan and any fees & interest payments. If the total outstanding amount is not settled, Vield will retain your assets to cover the total outstanding amount (including any interest).

You may consent to Vield to retain the BTC prior to LVR reaching 85% such that you will not be issued a default notice.

Vield uses a third party multi-signature wallet. You will have a unique address with Vield, and the assets will remain in that wallet for the duration of the loan.

Vield does not rehypothecate your assets – your assets will remain in your dedicated wallet with Vield for the duration of the loan. You may track your assets on the blockchain to ensure full transparency.

Vield Capital Pty Ltd is a credit representative (no. 553950) of LSL Alternative Credit Pty Ltd (no. 526970). The issuer of the loans is LSL Alternative Credit Pty Ltd and Vield Capital acts as the distributor.

KYC is a due diligence process used to verify customer identity. KYC ensures customers are genuinely who they claim to be.

Vield Capital operates under an Australian Credit License and we are required to comply with AML/CTF (anti-money laundering and counter-terrism financing) laws.

Becoming verified is usually a quick process but in some cases can take a few days to complete. Please allow 24 hours before contacting support in relation to the status of your verification.

At Vield, we are committed to responsible lending. Collecting detailed information about your income and expenses helps us assess your ability to repay the loan comfortably without compromising your financial stability. This approach ensures that you do not face financial hardship as a result of taking out a loan with us.

We collect information including, but not limited to, your income sources, household expenses, and the latest three months of your bank statements. This helps us make an informed decision about your loan application and offer you the most suitable loan solutions.

By reviewing your financial details, we can identify potential red flags indicating that the loan repayments might be unsustainable for you. This proactive step helps protect you from overcommitting financially and facing undue stress.

Vield adheres to the National Consumer Credit Protection Act 2009 and follows guidelines set by the Australian Securities and Investments Commission (ASIC). By making reasonable inquiries about your financial situation, we ensure that our loan products are suitable and that lending practices are responsible and ethical.

Please contact support@vield.io and the team will endeavour to respond to you within one business day.