Bitbond rates, fees and other details

Loan terms and repayment types

We offer the following loan terms and repayment types:

• 6 weeks: single repayment (zero coupon type)
• 6 months: monthly repayment of constant annuity (amortizing type)
• 12 months: monthly repayment of constant annuity (amortizing type)
• 36 months: monthly repayment of constant annuity (amortizing type)

Loan amounts

• Minimum loan amount for borrowers: BTC 0.1
• Maximum loan amount for borrowers: depends on personal debt capacity, all outstanding loans and ongoing loan requests are taken into account
• Value per loan note: BTC 0.01 (this is the amount of one note)
• Minimum bid amount for lenders: BTC 0.01
• Base currencies: all payment transactions are conducted in bitcoin only, we offer bitcoin, European euro, US dollar and Kenyan shillings as base currencies for the denomination of loans

Number of loans

Every borrower can have a maximum of 1 ongoing loan. This includes loans that are currently listed ("in funding") and loans that have been funded and are not repaid, yet.

Auction

The auction lasts a maximum of 14 days and ends earlier when the requested amount is reached. During the auction period lenders are bound to their bids.

Funding threshold

A loan is funded and paid out to the borrower either if the requested amount is reached during the auction period or if the funded amount reaches 60% or more of the requested amount at the end of the auction.

Early repayment

Loans with a term of 6 weeks can not be repaid early. Loans with a term of 6 months or more can be repaid early, but not before the first payment of the loan is due.

Interest rates

Interest rates are set according to a borrower's creditworthiness which is determined by the rating (risk based pricing). Interest rates vary according to the rating and the term of the loan. All payments of interest and principal are paid to lenders according to their number of notes held.

All interest rates are stated on a per annum (p.a.) basis to make loans of different terms comparable. The stated rates are nominal rates which means that the effective APR for a lender can vary slightly depending on the concrete payment schedule. You can view all payment schedules of your holdings under 'Investments' in your account. The interest rate payment is always calculated based on oustanding principal at the payment due date.

Borrower fees

Origination fee

The origination fee gets deducted from the loan amount prior to disbursement.

• 6 weeks term loan: 1.0% of the funded amount
• 6 months term loan 1.5% of the funded amount
• 12 months term loan 2.0% of the funded amount
• 36 months term loan 2.5% of the funded amount

Late payment interest

If a borrower delays payments on a loan, the borrower has to pay late payment interest at five percentage points above the base rate on the overdue payment on a per annum basis.

Arrears fee

In case a loan is late, Bitbond has the right to charge an arrears fee in bitcoin which equals EUR 1.00 for reminders sent via mail. This fee does not apply on the first reminder sent. The borrower may show evidence that despite the late payment the reminder costs have not been incurred or that the cost is substantially lower than this flat charge. We reserve to assert further claims from late payments.

Lender fees

Repayment fee

For every repayment of the borrower (sum of principal and interest) Bitbond keeps a certain percentage as a repayment fee for loan servicing. This repayment fee is 1.0% for all loan terms and can be set to a higher or lower level with specific lenders.

Taxation

All fees are VAT exempt according to §4 no. 8a UStG (German VAT act)

Date: May 2017