💡 Note: This article applies to app versions prior to v3.0.0.
The Credit Account gives you the freedom to spend without selling your crypto. By using your assets as a safety collateral, you get an instant credit line for your daily purchases.
Funding Account vs. Credit Account
To use this feature, your assets are organized into two categories:
Funding Account : This is your primary wallet where all deposits arrive. It functions like a standard spending or savings account.
Credit Account : This is a dedicated account for pledged assets. When you move crypto here, it acts as collateral. While these funds cannot be withdrawn while a balance is outstanding, they provide you with a real-time credit limit for spending.
How the Credit Process Works
Transfer & Pledge: You move a specific amount of crypto from your Funding Account to your Credit Account to serve as collateral.
Spend via Card: When you use your RedotPay card, the transaction is deducted from your credit limit rather than your wallet balance.
Credit balance & Interest: Spending generates a credit balance.
Daily Interest: Interest is calculated daily based on the principal portion of your credit balance.
Simple Interest: Interest is added to the total credit balance but does not accrue interest on itself (no -compounding).
Flexibility & Safety
No fixed billing cycle: There is no fixed bill. You can repay at any time (Pay-as-you-go).
Loan-to-Value (LTV) Safety Buffer: You can maintain your position indefinitely, provided the ratio of your Credit Balance to Real-time Collateral Value remains below 0.9 (90%).
Credit provided by RedotPay must be repaid according to the terms of service. Failure to repay may result in additional fees or restrictions on your account.
You have to repay your loans. Don't pay any intermediaries.
Money Lender's Licence No: [1715/2025]
Hotline: (852) 2765 4472