Your maximum loan amount is determined by the value of your cryptocurrency collateral and Vield's Loan-to-Value Ratio (LVR) policy. Understanding this calculation helps you plan how much you can borrow.

The Basic Formula

Maximum Loan Amount = Collateral Value (AUD) × 50%

Vield lends up to 50% of your crypto's current AUD value. This is the maximum Loan-to-Value Ratio (LVR) at loan origination.

Step-by-Step Calculation

Step 1: Deposit Your Collateral

Transfer Bitcoin (BTC) or Ethereum (ETH) to your Vield security wallet.

Step 2: Vield Calculates the AUD Value

Vield determines the AUD value of your collateral using its proprietary conversion rate at the date and time you deposit the crypto. This rate is set by Vield in its sole discretion.

Example:

  • You deposit: 1 BTC
  • BTC to AUD rate: $50,000
  • Collateral value: $50,000 AUD

Step 3: Apply the 50% LVR

Your maximum loan amount is 50% of the collateral value.

Using the example above:

  • Collateral value: $50,000 AUD
  • Maximum loan: $50,000 × 50% = $25,000 AUD

Minimum Requirements

Minimum Collateral Value: $4,000 AUD

Minimum Loan Amount: $2,000 AUD

To qualify for the minimum $2,000 loan, you must deposit crypto worth at least $4,000 AUD.

Loan-to-Value Ratio (LVR)

LVR measures your total debt against your collateral value.

Formula:

LVR = (Total Credit + Accrued Interest + Accrued Fees) ÷ Australian Dollar Value of Security Assets × 100

Initial LVR:

At loan origination, your LVR is up to 50%. You can request a lower amount if you prefer a more conservative LVR.

Example:

  • Collateral value: $50,000 AUD
  • Loan amount: $20,000 AUD
  • Initial LVR: $20,000 ÷ $50,000 × 100 = 40%

How LVR Changes Over Time

Your LVR changes due to:

1. Accrued Interest and Fees

As interest accrues, your total debt increases, raising your LVR.

Example:

  • Initial loan: $20,000
  • After 3 months interest: $650
  • New total debt: $20,650
  • Collateral value (unchanged): $50,000
  • New LVR: $20,650 ÷ $50,000 × 100 = 41.3%

2. Crypto Market Value Changes

If your crypto value increases, your LVR decreases. If it decreases, your LVR increases.

Example (value increase):

  • Original collateral: 1 BTC at $50,000
  • Loan: $25,000
  • BTC increases to $70,000
  • New LVR: $25,000 ÷ $70,000 × 100 = 35.7%

Example (value decrease):

  • Original collateral: 1 BTC at $50,000
  • Loan: $25,000
  • BTC decreases to $35,000
  • New LVR: $25,000 ÷ $35,000 × 100 = 71.4%

LVR Adjustments at Funding

If your crypto value changes significantly between application and funding, Vield may adjust your loan.

If LVR Would Exceed 50%:

Vield may, in its absolute discretion:

  • Rescind the agreement and return your collateral, or
  • Reduce the loan amount to the nearest $1,000 that results in an LVR of 50% or less

Example:

  • Applied for: $25,000 with 1 BTC at $50,000 (50% LVR)
  • BTC drops to $45,000 before funding
  • $25,000 ÷ $45,000 = 55.5% (exceeds 50%)
  • Vield reduces loan to $22,000 (nearest $1,000 at 48.9% LVR)

Requesting Additional Loans

When You Can Request More:

If your LVR falls below 25% due to crypto appreciation, you may request an additional loan (subject to approval).

Example:

  • Original: $25,000 loan with 1 BTC at $50,000 (50% LVR)
  • BTC increases to $120,000
  • New LVR: $25,000 ÷ $120,000 = 20.8%
  • Maximum additional loan: ($120,000 × 50%) - $25,000 = $35,000
  • Total borrowing capacity: $60,000

Multiple Loans Calculation

Personal Loans (up to 3 loans):

Combined LVR across all loans cannot exceed 50%.

Example:

  • Collateral: $100,000
  • Loan 1: $20,000
  • Loan 2: $15,000
  • Loan 3: $15,000
  • Total debt: $50,000
  • Combined LVR: $50,000 ÷ $100,000 = 50%

Origination Fee Impact

The 2% origination fee is deducted from your loan amount before disbursement.

Example:

  • Collateral: $50,000
  • Maximum loan: $25,000
  • Origination fee (2%): $500
  • Amount received: $24,500
  • Amount owed: $25,000 + interest

Important: Your LVR is calculated on the gross loan amount ($25,000), not the net amount received ($24,500).

Tracking Your Loan Capacity

You can view your loan capacity in real-time through the Vield app or web portal:

  • Current collateral value: Live AUD valuation
  • Available loan amount: Maximum you can borrow
  • Current LVR: If you have existing loans
  • Total outstanding balance: Principal + interest + fees

Important Reminders

  • LVR Calculation: Calculated based on market price sourced from major liquid exchanges
  • Market volatility affects LVR: Monitor your LVR regularly
  • Maximum 50% LVR at origination: This is a hard limit
  • Interest accrual increases LVR: Even with stable crypto prices
  • You can request less: Borrowing below maximum capacity gives you a buffer

Need Help?

If you have questions about calculating your loan amount:

Email: support@vield.io

Phone: (02) 9157 9669