All pricing is FICO-tiered with fixed rates for the life of the loan. Terminal Value represents the total of all scheduled payments over the full loan term, calculated using standard amortization.
| Tier | FICO Range | APR | Max DTI | Terminal Value ($100K / 120mo) |
|---|---|---|---|---|
| Tier 1 | 750+ | 10% | 65% | $158,581 |
| Tier 2 | 700–749 | 12% | 60% | $172,165 |
| Tier 3 | 670–699 | 14% | 60% | $186,319 |
| Tier 4 | 640–669 | 16% | 55% | $201,016 |
| Tier 5 | 620–639 | 18% | 55% | $216,222 |
Terminal Value = Monthly Payment × Term. Monthly Payment is calculated using the standard amortization formula: P × [r(1+r)n] / [(1+r)n – 1], where P = principal, r = monthly rate, n = number of payments.
All of the following are non-negotiable eligibility requirements. Failure on any single criterion results in automatic decline. No exceptions, no manual overrides.
Note: Multiple concurrent performing loans ARE permitted. A borrower in good standing may hold more than one active BTC Now installment plan simultaneously, subject to aggregate DTI and exposure limits.
| Method | Eligible Payments | Fee |
|---|---|---|
| FBO Account Balance | Always — charged FIRST | No fee |
| ACH Transfer | All payments | No fee |
| ACH Auto-Pay | All — borrower-configured | No fee |
| FedNow | All payments | No fee |
| Debit Card | All payments | $5.00 |
| Credit Card | FIRST PAYMENT ONLY | $5.00 |
| Repay.com eCash | In-store cash at retail | Service provider fee |
Charge Order: FBO Balance first → Auto-Pay → Manual Payment. The system always depletes the FBO account balance before initiating any external payment method.
Borrower e-signs the loan agreement. The first payment is required BEFORE any funds are released. Credit card is permitted for the first payment only. Funds are released within 1 business day of first payment confirmation.
USD proceeds are held in the borrower's FBO (For Benefit Of) account at the Bank Partner. There is no conversion deadline — the borrower decides when to convert. Monthly installment payments continue regardless of conversion status.
Borrower connects their Kraken account (or uses 1-click onboarding to create one). 100% of the loan amount is converted to Bitcoin. BTC is sent directly to the borrower's segregated wallet at Fireblocks Trust.
Pre-conversion cancellation: If a borrower cancels before BTC conversion, USD is returned. However, all installment payments already made are RETAINED (non-refundable). No credit bureau impact for pre-conversion cancellations.
Every loan is 100% Bitcoin-backed. The purchased Bitcoin serves as collateral for the duration of the loan and is held under institutional-grade custody.
No margin calls. No forced liquidations. Bitcoin price movements do not trigger any action against the borrower. The collateral is held until loan maturity or default — regardless of price volatility.
| Day | Status | Action |
|---|---|---|
| Day 1 | Payment Missed | Automated reminder sent |
| Day 7 | 7 Days Past Due | Second reminder sent |
| Day 10 | 10 Days Past Due | Warning issued; account flagged |
| Day 15 | Grace Period Expires | $15 late fee applied; RIGHT TO CURE NOTICE |
| Day 16–34 | Cure Period (20 days) | Weekly contact attempts |
| Day 35 | Cure Expires | Human review triggered |
| Day 35+ | Default Review | If confirmed, formal default notice issued |
| Post-Review | Confirmed Default | BTC seizure; credit bureaus notified |
Cure events are tracked for the lifetime of the loan — they never reset.
| Occurrence | Action |
|---|---|
| 1st Cure | Standard 20-day cure process |
| 2nd Cure | Standard cure + written warning |
| 3rd Cure | Standard cure + FINAL WARNING |
| 4th Cure | ACCELERATION: Full terminal value due OR mandatory auto-pay enrollment |
Critical: The 35-day grace/cure timeline does NOT apply to ACH failures. ACH failures follow an accelerated enforcement path.
| Event | Consequence |
|---|---|
| 1st NSF | $25 NSF fee + $15 late fee; borrower notified immediately |
| 2nd Consecutive NSF | IMMEDIATE ACCELERATION — full terminal value due within 15 days or BTC seizure |
Borrowers may prepay at any time with no traditional prepayment penalty. However, a yield maintenance fee is charged on early exit to compensate the lender for lost future interest. This is not a penalty — it is the contractual cost of the borrower exercising their prepayment option.
YM Fee = PV of remaining interest payments × (Loan Rate − Treasury Rate) / Loan Rate
| Scenario | YM Fee | Rationale |
|---|---|---|
| Customer exits early, BTC UP | Yes | Customer is profitable — fee is the price of the prepayment option |
| Customer exits early, BTC FLAT | Yes, if proceeds cover | Applied only to the extent covered by collateral |
| Customer exits early, BTC DOWN | No — Waived | Taking collateral loss is sufficient; fee is fully waived |
| Customer completes full term | No | Lender received all scheduled interest — no lost yield |
Yield maintenance is only applied when the borrower is profitable on the transaction. It is waived on underwater exits, making it legally defensible and non-predatory. This mechanism is standard in CMBS, Fannie Mae, and Freddie Mac commercial loan products.
Upon verified death of the borrower, the estate receives a 90-day decision period. The estate may either assume the loan (continuing payments under the same terms) or pay the full terminal value to close the account. No late fees are assessed during the 90-day period.
ONE hardship deferral per loan lifetime, for up to 30 days. The borrower's account must be current or less than 15 days past due at the time of the request. Deferred payments are added to the end of the loan term.
A police report is required to initiate an identity theft claim. Upon receipt, the account is immediately frozen and a 30-day FCRA investigation is opened. No collection activity occurs during the investigation period.
A mandatory 10-day cooling-off period is enforced between loan applications. This prevents rapid successive applications and gives borrowers time to evaluate their financial position.
All required disclosures are presented within the digital onboarding flow. APR, finance charges, total of payments, and payment schedule are disclosed before borrower acceptance. All disclosures are archived and auditable.
All five credit tiers comply with the 36% MAPR cap (BTC Now tiers range 10–18%). DMDC (Defense Manpower Data Center) check is mandatory for every applicant to identify covered borrowers.
No discrimination on any prohibited basis. All applicants are evaluated using consistent, automated criteria. Adverse action notices are issued within 30 days of decline, citing specific reasons.
Two-stage credit pull strategy. Monthly Metro 2 reporting to all three bureaus (Equifax, Experian, TransUnion) via Bloom Credit.
Stage 1 (Soft Pull): Used for pre-qualification. No impact to the borrower's FICO score. Allows borrowers to see their eligible tier and terms before committing.
Stage 2 (Hard Pull): Triggered only after the borrower accepts the pre-qualified offer. Final verification of creditworthiness. Post-acceptance decline rate is less than 1%, ensuring minimal borrower friction.