FAQs > Dollar Loans
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!
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)
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.
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.
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.
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 coins can be used for collateral on the app?
BTC, XRP, ETH, BCH, DAI and LTC
How do I pay interest on my loan?
Interest will be paid monthly in USD, BTC, ETH, or CEL(with better rates).
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 off my loan?
Loans will be paid back in full once the loan is terminated. This means no monthly payments towards the principal!
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.
Who are dollar loans for?
You! The HODLer that wants access to the value of their digital assets without selling them off.