FAQ

Here are answers to most common questions. Can’t find an answer? Contact us

Celsius Network Corporate Video

Welcome to Banking on the Blockchain

Banking on the Blockchain, Explained

Celsius Wallet/Earning Interest

How do I start earning interest?

You deposit your crypto! You’ll start earning right away. Interest is paid out every Monday.

What are the earned interest rates?

Our interest rates start at 3% and go up to 7.1%. You can see current rates here: celsius.network/rates

How do you determine the interest rate?

The interest rates are evaluated weekly based on market demand and our earnings from the previous week and are subject to change at any point in time.

Why do the interest rates keep changing?

Our interest rates will be updated weekly based on the demand in the market. If an institution is willing to pay a high price for certain coins, we’ll share that spike in earnings with you! We are trying to keeping interest rates above 3% for all the assets supported in the app.

In what currency is interest paid?

Currently, interest is paid in-kind. This means you’ll earn BTC on your BTC, ETH on your ETH, and so on. Eventually, users will be able to also choose to earn interest in the Celsius token, CEL, at even better rates!

When is interest paid?

Interest is paid every Monday. Great way to start your week, right?

How is interest paid?

Interest will be deposited directly into your app. It is calculated from Friday to Thursday and distributed Mondays. This means if your first deposit is on Friday, Saturday, or Sunday your first interest distribution will be the following Monday (you will not receive interest the first Monday).

Is there a minimum or maximum deposit?

No! We want to be as inclusive as possible.

Is there a maximum withdrawal?

There are no limits on withdrawals; it's YOUR money. For your protection, there is a daily withdrawal limit of $20,000. To withdraw more than that, simply email app@celsius.network and verify your identity, we will then process your withdrawal within 24 hours.

Why does my wallet address lock after the 1st removal?

We lock the address after the first withdrawal for security reasons. This way, in the rare chance a hacker is able to gain access to your account, the only place they can send your crypto is a wallet that you already control.

Where are my coins held?

Coins are held in BitGo and lent out to hedge funds/exchanges/institutional traders. Don’t forget! Any time your coins are lent out, up to 150% of the value is provided in another collateral (typically USD). For a more in-depth look check out this article that one of our members wrote up. https://trybe.one/celsius-network-how-secure-are-your-assets/

How do I set/lock a withdrawal address?

You can set your withdrawal address at the time of your first withdrawal or by contacting app@celsius.network. Once it is set, you can not change it without contacting app@celsius.network. This way we can protect you in case someone is able to get into your app. *When contacting app@celsius.network you must include a photograph of yourself holding your KYC document and a note with the current date on it. Please make sure the photo is clear enough that the numbers can be read to match the KYC submission.

Can I choose NOT to have my address locked?

Not at the moment. Our top concern is security, and we feel this is the most secure we choice we can make at this time.

When I make a withdrawal, am I withdrawing my deposit or my interest?

When you withdraw from your Celsius Network wallet, your deposits are always withdrawn first. For example, if you deposit 100 BTC and withdraw 100 BTC after six months, all that would remain would be the interest you earned on that BTC. If you withdraw 25 BTC, 75 BTC would remain in your wallet plus the interest you previously earned. You would then continue earning on the 75 BTC remaining from your deposit, as you do not earn interest on interest

Why doesn’t interest compound?

Our business model does not account for compounding interest - we’d rather give you the highest rates possible, always! Compounded interest is simply not a sustainable business model at this time.

Dollar Loans

Who are dollar loans for?

You! The HODLer that wants access to the value of their digital assets without selling them off.

What is the term length on these loans?

Our standard loan agreement is structured for a six or twelve-month term. However, there is no penalty for terminating and repaying your loan early, and there is always an option to renew.

How do I pay off my loan?

Loans will be paid back in full once the loan is terminated. This means no monthly payments towards the principal!

What are the interest rates for Celsius loans?

We offer the lowest interest rates in the industry. Starting at just 4.95%, the interest rate offered depends on your loan-to-value ratio. The more collateral (crypto) you use, the lower your interest rate. Check out our borrowing page for more information.

How do I pay interest on my loan?

Interest will be paid monthly in USD, BTC, ETH, or CEL(with better rates).

What coins can be used for collateral on the app?

BTC, XRP, ETH, BCH, DAI and LTC

Why does the interest rate vary on loans?

The interest rate varies based on your loan-to-value ratio. The more collateral you put down, the smaller the interest rate. For example, if you took out a $25,000 loan and put down $100,000 worth of digital assets, your annual interest rate would be 4.95%. If you took a $50,000 loan with the same collateral, your annual interest rate would be 8.95%.

What happens if my assets drop sharply in value?

To protect the community, we have set up responsible Loan-to-Value ratios to prevent margin calls. However, we do have a system in place should the value of the collateral drop significantly. If the value of your collateral drops drastically enough to increase your Loan-to-Value ratio to 65% we will send a “Margin Call Warning” via text or email. You’ll have three options:

1. Deposit any accepted coins into your wallet to increase your collateral.
2. Pay down the loan.
3. Sell some of your coins.

Will you ever sell my assets without asking me?

There are two extreme situations in which we will be forced to sell your assets. You will always be notified.

1) The value of your collateral dropped significantly enough to change your Loan-to-Value Ratio (LTV) to 65% or higher. We gave you a margin call with a twelve-hour response limit, and you did not respond.
2) Your LTV has increased all the way to 80%.
In the first situation, we have the right to sell your crypto back down to the original LTV. In the second, we will only sell enough to bring you to a 70% LTV, and then issue you another Margin Call with the twelve-hour window.

How long do I have to react after you contact me?

You will have twelve hours to react to a margin call unless the market continues to drop dramatically. We will try to provide you with alerts when the market is very volatile.
If after your margin call the value continues to drop, making your Loan-to-Value Ratio (LTV) 80% or higher, we will sell enough of your crypto to bring the value LTV to 70% until you respond or the five hours expires.

Do you lend stable coins as well as fiat?

Yes! We can currently fund loans in each stable coin we accept for deposit. (TUSD, GUSD, PAX, USDC, DAI)

Can I use CEL tokens to as collateral for my loan?

No, the CEL token cannot be used as collateral but can be used for monthly interest payments!

Security

Who is your custodian?

We are using BitGo as our custodian.

How can I know my money is secure?

We currently use BitGo as our custodian. They are the best in the business, being used by many of the top exchanges and companies. Whenever coins are being lent out from our pool of assets, they are over-collateralized. This means that anytime an institution borrows coins from us, they provide up to 120% of the value in another form of collateral.

Wait… you’re lending out my coins?! How are they secured?

We lend out responsibly from our community’s pool of assets. This means that your coins are never “locked up” and you can withdraw at any time.

This being said, we get it, this sounds crazy. Keeping assets locked in one place may be safest, but it’s not the smartest. Celsius is allowing the 99% to access the tools to earn a passive income previously held for the 1%. By lending out from our community’s pool, we are operating the same way any old-school financial institution would (plus most crypto exchanges and hot wallets). The difference is that instead of keeping the profits for ourselves and our shareholders, we distribute it amongst the community.

How is your app secure?

Our app is just an interface and does not actually hold any of your digital assets. The wallet you use is a BitGo wallet. We have many additional security features including:
- Password protection
- Entering a PIN for any withdrawal
- Inability to change wallet address without verifying your identity with the Celsius team
- Inability to withdraw more than $20,000 worth of assets without verifying your identity with the Celsius team
- 2 Factor Authentication

Do you have insurance?

Celsius Network currently does not have an insurance policy, as there are very limited options in the  industry right now. We are always exploring options and will continue to make choices in the best interest of the community.

What is KYC?

KYC is short for Know-Your-Customer. It is standard practice for any company offering financial services. It is an important part of protecting our community against money laundering and any bad players entering our ecosystem.

What can I use for KYC?

Using a passport is generally the best bet, but our KYC provider accepts most government-issued IDs such as licenses and national ID cards.

How long does KYC take to process?

KYC usually takes up to 24 hours. In most cases, the process happens within a few hours. Please make sure image quality is good before you send it!

How do I know Alex isn’t going to run off with our crypto?

All BitGo accounts are “multi-sig,” meaning no single person within the company can make withdrawals going out of the system without the multiple parties approval.

Can I remove or change my residential address in the app?

You can update your address at any time. We will simply ask you to send us confirmation of your new residential address, and we will update your address for you.

Who performs audits for Celsius?

As of now, we are finalizing an agreement with a reputable external auditor. We plan to share the information on our website in the future

Token Economics

What are the Celsius Tokens (CEL) used for?

There are seven planned utilities for the CEL token: membership, priority in line for loans, better dollar loan rates, better-earning rates, better coin loan rates, CEL for CelPay, and premium support. You can read more about them here.

Where can I buy CEL?

CEL is currently available on IDEX and will be listed on more exchanges in April/May 2019.

What exchanges will the tokens be available on?

We are currently working to get listed soon after the one year anniversary of our Token Generation Event (April 20th, 2018). This is important to satisfy various regulations in the U.S. We should be live on an exchange by the first week of May.

Will I be able to purchase CEL directly from the app?

Yes, we are exploring different options when it comes to enabling in-app CEL purchases. Please stay tuned for our announcement!

What benefits do I get paying off my loan with CEL tokens?

You will be able to pay off your loan at a 20% discount by using CEL tokens.

What is the total CEL token supply?

There are a total of 695,663,643.3779 CEL tokens.

Can I use CEL tokens to as collateral for my loan?

No, the CEL token cannot be used as collateral but can be used for monthly interest payments!

What about the team’s tokens?

After an internal vote, the Celsius team agreed to not collect its tokens until six months after an exchange listing. We did this to assure the community of our true intent: to build the best product possible for our community with the goal of bringing crypto to the masses.

GENERAL FAQ

What’s HODL?

HODL started as a typo and has become a crypto rallying cry. A misspelling of the word “hold,” HODLers believe in the future of digital currencies and know it would be a mistake to sell at this early stage.

Will there be a web-based version?

Yes! We are planning on developing a web version of our app by the end of 2019. Stay tuned!

I’m stuck in KYC! Help!

Typically, KYC takes under an hour. However, sometimes an application will require some extra review and may take up to 24 hours. If it has been more than 24 hours please contact app@celsius.network.

How old are you?

Our co-founders, Alex Mashinsky and Daniel Leon, came up with Celsius Network in June 2017. We completed our fundraising in March of 2018, and here we are!

How does Celsius Network make money?

Celsius Network operates on a nonprofit model, sharing up to 80% of our profits with our community. Our two main revenue sources are cash and crypto loans. We funded over $630m in our first six months!

OK, really, where are the fees?

You can keep looking, but you won’t find any. No withdrawal fees, no deposit fees, no transaction fees, no early termination fees, no origination fees, no breathing fees, no we-don’t-like-you fees. No fees! No fees!!

What are your Assets Under Management (AUM)?

We currently have over $50million in AUM.

How do I change things within the app if something is wrong? Who do I contact?

You may contact us at any time at app@celsius.network. Suggestions are always welcome! You may also contact the team at any of our social networks (Facebook, Twitter, Telegram, Instagram and Reddit). You can generally catch one of us - the sun never sets on Celsius Network!

BitGo has $100m insurance, how does it affect Celsius?

When we say BitGo is best in class, we’re not kidding! BitGo has its own $100m insurance policy, protecting all cold wallet accounts. The accounts are protected in three instances: external hack, insider theft, or loss of keys. You can read more about their policy here.

.