FAQ

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

Crypto Collateral

You, the person who wants to leverage your crypto holdings to take out a loan in USD without selling your cryptos.

We plan to offer a large array of lending options from one-day to one-year contracts, all with highly competitive interest rates to offer our members as many options as possible.

We intend to lend with single-digit interest rates –  no matter your credit score – so we can provide our members with much lower rates than they would get from a traditional bank. We expect dollar loans to crypto holders to be somewhere between 7-9% compared to 18-35% for typical credit cards. We plan to use the interest received to increase our ability to lend more dollars to more members. As we get to scale, we plan to use our size to lower interest rates further. However, market forces and industry standards will obviously have an effect on our ability to offer these terms, but as of now, these are the rates we intend to offer.

You take a loan in dollars and pay it back in dollars, the interest will be paid back in CEL.

On a monthly basis, we plan for members setup a direct withdrawal from their bank accounts.

The more members we have, the more we can lend. This will give us the ability to offer better rates to everyone. Our goal is to grow the community of borrowers and lenders so we will be offering incentives for people who join the network early, who refer additional people, etc. Basically the more the merrier, and less expensive – so tell your friends!

No, the interest rates will not be determined by the amount of your collateral. We believe everyone should be offered the same rates regardless of how much money or crypto they have. The current financial system is unfairly biased towards people with more – more assets, more connections, more access. We want to change that.

We plan to allow people to start borrowing dollars once they have deposited at least $100 worth of accepted cryptocurrency. Based on the volatility of the coin, the amount a member can borrow will vary between 20-50% of the value of the coin. We aim to keep the minimum deposit as low as possible to remove any barriers to entry. Tell your credit cards to take a hike.

To protect the community we will set limits to balance out lending as much as possible against margin calls. Once the value of your collateral drops below the agreed level (usually between 20-50% of the currency’s value) you will be notified by text and email that you can either:

  1. Deposit any accepted coins into your wallet to increase your collateral
  2. Pay down the loan by depositing USD funds via ACH
  3. Sell some of your coins

Yes. If you do not respond and your collateral continues to drop in value we will sell a portion of your coins. If the value of your collateral continues to fall you may receive additional notifications.

You will have several hours to respond and decide what you would like to do. We will try to provide you with alerts when the market is very volatile.

To avoid any uncertainty, we have decided to follow the Reg-D rules under US securities laws with respect to the US.

Lending

We will represent the lenders, so we will pool all the lenders’ assets together to create one crypto pool for the borrowers, and then we will let Wall Street hedge & crypto funds bid the highest possible price to borrow those coins. We’re looking out for our lenders, not the hedge and crypto funds.

We aim to provide our lenders with rates of somewhere between 5-9% depending on the demand of the deposited coin. This number is determined by what’s best for the community.

Interest earned will be paid in BTC, ETH or Celsius Tokens (CEL) based on the profile of the user. Your interest will be calculated and deposited daily into your account.

The coins deposited by our members are never provided to any 3rd party. At all times, coins are moved between Celsius’ accounts on the top 5 exchanges. Lenders could be at risk if Celsius did not require sufficient cash deposits from hedge funds who initiated short positions on the Celsius platform.

On a monthly basis, we plan for members setup a direct withdrawal from their bank accounts.

The more members we have, the more we can lend. This will give us the ability to offer better rates to everyone. Our goal is to grow the community of borrowers and lenders so we will be offering incentives for people who join the network early, who refer additional people, etc. Basically the more the merrier, and less expensive – so tell your friends! As all loans are backed by crypto collateral or cash deposits from hedge funds we see very little opportunity for fraud. A portion of the interest from any loan will go into a reserve pool set aside to protect lenders against any loans that are defaulted on.

We do not lend coins, we will lend dollars using the cryptocurrency from our members as collateral. The crypto holder still has the same volatility regardless of whether they took the loan. The volatility of cryptocurrencies in relation to the US dollar will be irrelevant with our model because the loan is in dollars, the cryptocurrency is only being used as collateral to enable us to lend at low rates. Our goal is to always lend with interest rates at single digits no matter what your credit score is. Most of our members have not been able to access sub 10% borrowing rates in their lifetimes.

Platform & Token economics

Hedge and crypto funds must use CEL in order to pay the fees and commissions on their margin trade order with Celsius. Celsius will distribute daily the CEL tokens to all the members who lent coins as interest. CEL is an essential part of the Celsius Network ecosystem. Participants such as hedge funds or other financial institutions who would like to take a short position on a particular cryptocurrency will be required to place a large cash deposit as well as pay fees and commissions in order to complete a transaction. All fees and commissions will be paid in CEL. We are creating the CEL token to give coin holders an additional source of potential appreciation from increasing trades by the hedge and crypto funds. As the volume on the Celsius Network increases, demand from funds to buy CEL will increase as well.

We are in the process of partnering with some of the largest exchanges to manage our buy and sell orders. We will use our leverage from the volume of buy and sell orders to get listed on these same exchanges. Our aim is to be listed on as many top exchanges as possible.

We expect to be listed within the first few months after the close of the public sale.

Within a few weeks of the closing of the crowdsale. All tokens will be distributed to all participants within a window of 12 hours, except for bonus tokens which will be locked up for 6 months.

Crowdsale:

U.S. citizens/residents cannot participate in the crowdsale. Non-U.S. citizens do not have to be accredited to participate in the crowdsale.

We will provide you with wire information for our bank account.

For the crowdsale, the price of one CEL will be issued at USD $0.30 each. It is not tied directly to ETH or BTC. The conversion is based on the USD price provided to us by Gemini at the time when we receive the contribution. We can provide you with the email confirmation from Gemini if necessary.

The crowdsale will end on March 22th or when we hit our hard cap of $50m.

650,000,000 tokens in total, with 325,000,000 for sale. Unsold tokens from the token sale will be burnt.

We’ll need a copy of your passport or ID as well as a selfie. We reserve the right to request additional documents if necessary.

It usually takes less than 48 hours to get KYC verified. However, you can still contribute and purchase your tokens in the meantime.

A few weeks after the crowdsale closes, we will start sending out CEL tokens.