💡 Note: This feature is available in app v3.0.0 and later.
When you use the RedotPay Credit feature, a credit balance is created in your account. This represents the amount used for your transactions while your digital assets remain in your account as collateral.
The "Spend vs. Sell" Logic
In a standard payment, your crypto is typically sold to cover the cost. The Credit feature changes this:
No Selling: Your cryptocurrency assets (like BTC or ETH) are not liquidated.
Collateral-Backed Spending: The system uses your assets as collateral to back your payments. Your credit balance represents the total amount borrowed against those holdings to complete your purchases.
How the Credit Balance is Generated
The moment you make a purchase or a transfer using your credit line:
Instant Balance Update: The transaction amount is added to your total Credit Balance.
Asset Pledging: A portion of your crypto (e.g., if you spend $60, approximately $100 worth of assets) will be pledged as collateral. These assets are "locked" and cannot be withdrawn until the balance is repaid.
Understanding Interest Costs
Because the Credit Balance functions as a flexible loan, it incurs a daily borrowing cost:
Daily Interest Rate: A fixed interest rate of 0.05% per day.Simple Interest: Interest is calculated daily based on your principal balance. We use simple interest, meaning you only pay interest on the amount you borrowed—interest does not compound on itself.
Calculation:
Daily Interest = Principal Credit Balance × 0.05%.
How to Repay Your Credit Balance?
You can settle your credit balance at any time through the following steps:
Step 1: On the Credit page, tap on your Credit Balance.
Step 2: On the details page, tap the [Repay] button.
Step 3: Choose your preferred repayment method:
Repay via Balance: Use the funds in your balance to settle the amount.
Repay via Collateral: Use a portion of your staked assets to settle the balance directly.
Important Note on Collateral Release:
Partial Repayment (via Balance): You can manually choose whether you wish to release the corresponding collateral.
Full Repayment (via Balance): All pledged assets will be released automatically by default.
Credit provided by RedotPay must be repaid according to the terms. Failure to repay may result in additional fees and impact your account usage.
You have to repay your loans. Don't pay any intermediaries.
Money Lender's Licence No: [1715/2025]
Hotline: (852) 2765 4472