I. Definitions

For the purposes of these Terms and Conditions:

• “Cashaa” refers to the Cashaa platform providing crypto-backed lending services.
• “Borrow Program” means the crypto-collateralized lending product offered by Cashaa.
• “Borrower” means any user who obtains a loan under the Borrow Program.
• “Collateral” means digital assets pledged by the Borrower to secure a loan.
• “Liquidity-to-Value (LTV)” means the ratio of loan principal to the market value of pledged collateral.
• “APR” means Annual Percentage Rate, accrued daily.
• “Margin Call” means a risk warning triggered when LTV reaches predefined thresholds.
• “Liquidation” means automatic sale or conversion of collateral when LTV reaches 80%.

II - Product Scope

The Borrow Program enables users to access stablecoin liquidity without selling their digital assets. Loans are fully over-collateralized and subject to automated risk controls.

Supported collateral classes:

• Bitcoin (BTC)
• Ethereum (ETH)
• Approved Top Altcoins as available within the Cashaa app (Revised at regular intervals)

III - Collateral Classes and Loan Parameters

3.1 BTC-Collateralized Loans

Loans backed by Bitcoin support the highest LTV options and durations up to 12 months.

Special rule: BTC loans initiated at 70% LTV trigger margin calls at 75%, due to the reduced buffer.

3.2 ETH-Collateralized Loans

Loans backed by Ethereum are capped at 50% LTV due to asset volatility.

3.3 Altcoin-Collateralized Loans

Supported assets: SOL, BNB, AVAX, MATIC, XRP, ADA, DOT, ATOM, LINK, TRX.

IV - Loan Origination and Disbursement

• Minimum loan amount: $500 equivalent
• Disbursement currency: USDT or USDC, at Borrower’s choice
• Admin fee: 1% of principal (minimum $20) deducted at origination

V - Interest Calculation and Repayment

• Daily Accrual: Interest is calculated based on the APR and accrued daily on the outstanding principal.
• Payment Options: Borrowers choose to pay interest monthly or as a lump sum at the end of the loan term.
• No Early Penalties: Borrowers may repay the loan early and also pay only the interest accrued up to the date of repayment.
• Partial Repayments: Permitted at any time; payments are first applied to accrued interest and then to the principal.

VI - Collateral Management

• Collateral is locked for the duration of the loan
• Borrowers may add collateral at any time to reduce LTV
• Collateral top-ups are available 24/7

VII - Risk Management: Margin Calls & Liquidation

• Margin Call Trigger: When LTV reaches the asset-specific threshold (BTC: 70%/75%, ETH: 65%, Altcoins: 60%), automated notifications are sent via email and in-app.
• Borrower Action: To avoid liquidation, borrowers must either add more collateral (of the same asset type) or repay a portion of the loan principal.
• Automatic Liquidation: Triggered instantly if LTV reaches 80%. This is a system-driven event to ensure the recovery of loan value.
• Liquidation Fee: A fee of 2% of the liquidated amount is charged during the closure of the position.
• Surplus Return: Any collateral remaining after debt settlement, fees, and penalties is returned to the user's wallet within 24–72 hours.

VIII - Delinquency and Late Fees

In the event that repayment obligations (monthly interest or maturity principal) are not met, the following penalty structure applies:

1. Monthly Interest Overdue: A penalty of 5% of the overdue interest amount or $100, whichever is greater.

2. Maturity Principal Overdue: A monthly penalty of 5% of the total outstanding amount or $100, whichever is greater.

3. LTV Risk: Unpaid penalties and accrued interest increase the total debt, which may cause the LTV to reach the 80% liquidation threshold.

IX - Risk Disclosure

• Volatility: Borrowers bear all market risk related to the value of their collateral.
• Automation: Liquidation is automated and does not require borrower consent once the 80% threshold is breached.
• Availability: Collateral top-ups are available 24/7 to manage loan health.

X - Governing Principles

• Fully automated, over-collateralized lending
• No native token holding requirements for tier benefits
• Transparent APR and fee structure