Depositing Collateral

Accepted Cryptocurrencies

Vield accepts Bitcoin (BTC) and Ethereum (ETH) as collateral for loans.

How to Deposit

  1. Log in to your Vield account (web portal or mobile app)
  2. Navigate to the collateral deposit section
  3. Receive your unique Security Wallet address
  4. Transfer BTC or ETH from your personal wallet to the provided address
  5. Wait for blockchain confirmation (typically 10-30 minutes)
  6. Your collateral value will be displayed once confirmed

IMPORTANT: Double-check the wallet address before transferring. Cryptocurrency transfers are irreversible. You are responsible for ensuring the correct address. We recommend that customers do a test transaction first with a small amount to see it flow through. Followed by sending the full amount or in batches. Always double-check the wallet address before transferring. Vield is not responsible for transfers sent to incorrect addresses.

Minimum Collateral

  • Minimum AUD value: $4,000 (required to access $2,000 minimum loan)
  • Valuation: Calculated using Vield's BTC/ETH to AUD conversion rate at the time of deposit

Tracking Your Collateral

Real-Time Monitoring

You can monitor your collateral at any time through:

  • Vield App/Web Portal: View current AUD value, quantity of BTC/ETH, and LVR
  • Blockchain Explorers: Track your assets on public blockchains using your wallet address

Blockchain Transparency

Your Security Wallet address is visible in your Vield account. You can verify your collateral at any time:

  • For Bitcoin: Use Blockchain.com or similar BTC explorers
  • For Ethereum: Use Etherscan.io or similar ETH explorers

Simply enter your wallet address on the explorer to view your balance and transaction history.

Adding More Collateral

When to Add Collateral

You may want to add more collateral to:

  • Lower your LVR and create a safety buffer
  • Respond to LVR warnings (when your LVR reaches 65%, 70%, or 75%)
  • Increase your borrowing capacity for additional loans
  • Avoid potential liquidation if crypto markets are volatile

How to Add Collateral

Transfer additional BTC or ETH to your Security Wallet address using the same process as your initial deposit. Your total collateral value will update automatically.

Impact on LVR

Adding collateral immediately lowers your LVR:

Example: You have a $25,000 loan secured by 1 BTC worth $50,000 (50% LVR). BTC drops to $35,000, raising your LVR to 71.4%. You deposit 0.5 BTC (worth $17,500), bringing your total collateral to $52,500. Your new LVR is 47.6%.

Withdrawing Collateral

When You Can Withdraw

You can withdraw your collateral when:

  • You have repaid all outstanding loan balances (principal, interest, and fees)
  • When the LVR of your loan is below 25% such that the LVR does not exceed 50%

You cannot withdraw collateral while you have active loans. Your crypto is held as security until full repayment.

Withdrawal Process

  1. Repay all outstanding balances
  1. Provide your personal crypto wallet address
  2. Vield transfers your collateral within 2 business days
  3. Close your account (if desired)

CRITICAL: You are solely responsible for providing the correct wallet address. Crypto transfers are irreversible. Vield is not responsible for losses due to incorrect wallet details.

Collateral Security

How Your Collateral is Secured

  • Air-gaped cold storage wallet: Provided by Zodia, requiring multiple approvals
  • Unique address: Each customer has a separate wallet
  • No rehypothecation: Your crypto is never lent to others
  • No co-mingling: Assets are not mixed with other customers
  • Insurance: Protected by Zodia Custody insurance (up to USD $200M)

Ownership

Your collateral remains legally yours throughout the loan term. Vield holds a security interest under the Personal Property Securities Act (PPSA), but ownership remains with you.

Vield only takes ownership if: You are in default, receive a Default Notice, and fail to remedy the default within the specified period (typically 30 days).

Best Practices

  • Monitor your LVR regularly (especially during volatile markets)
  • Maintain a buffer by keeping your LVR below 50%
  • Add collateral proactively when you receive LVR warnings
  • Save your wallet address securely for tracking
  • Verify transfers on blockchain explorers
  • Keep personal wallet private keys offline for maximum security