Create Loan Request

1. From the home screen, select Initiate Loan.

2. Enter an amount to borrow.

3. Select the loan duration. Currently we have options to extend to a year, however you will still have to pay monthly.

4. Your loan terms will auto-populate and you’ll be able to see your monthly required payment.

5. To understand what the monthly required payment is, select the orange information button.

6. After carefully reviewing the loan terms, select Request Loan to initiate the loan processing.

7. Please stay on the processing loan screen until you are approved.

Managing Your Loans

1. From your home screen, select Active Loans.

2. Here you will be able to see all your loans with the remaining time period.

3. Selecting on an active loan will give you more details the option to make a payment, extend your loan or add more collateral.

4. To understand our payment policy, select the orange information button.

Next Steps

Send and receive from another Lava Vault and learn how to withdraw to your bank.

FAQ

• Can I repay my loan early? Are there any penalties?

  Yes, you can repay your loan early without incurring any penalties or additional charges.

• What is the maximum loan amount I can take?

  There is no set maximum loan amount. However, if you encounter any issues during the process, please contact harper@lava.xyz.

• How long does it take for my loan repayment to be processed?

  Loan repayments are processed instantly. If your repayment hasn’t been processed instantly, please email hello@lava.xyz.

• Why did I receive an error message such as “lava core: Insufficient balance” when trying to take out a loan?

  This error typically means that the Bitcoin transaction used as collateral has not yet been confirmed on the network. Please wait approximately 10 minutes for the transaction to settle before borrowing against it.

• Does Lava report loan activity to credit bureaus?

  No. We do not share any personal information or loan activity with credit bureaus or any third parties.

• Are there any restrictions on how I can use the borrowed funds?

  No, there are no restrictions on how you use the funds.

• What happens to my collateral when I repay my loan?

  Once you repay your loan, your collateral is released back to your vault.

• Can I take out multiple loans at once?

  Yes. You can take out additional loans from the Active Loans page.

• When will longer-term loan durations be available?

  Longer-term loan options are coming soon! Follow us on Twitter @lava_xyz for updates.

• Can I extend my loan after the due date has passed?

  No. If you miss your monthly payment and the due date has passed, the loan cannot be extended. Additionally, if a loan is not paid upon expiration, it will be partially liquidated.

• What types of collateral can I use to secure a loan?

  Currently, only Bitcoin is accepted as collateral.

• What happens if my collateral drops in value significantly?

  If the value of your collateral falls below a predetermined threshold (a Loan-to-Value ratio of 95%), your collateral will be sent to the lender and liquidated to cover the loan amount.

• Why is the repay button on my loan not clickable/greyed out?

  First, ensure that you have the required amount of USD in your account to repay your loan. If you do have sufficient funds and the button remains unclickable, please contact us at hello@lava.xyz.