Overview
What is RedotPay Loan?
RedotPay Loan lets you borrow stablecoins without selling your crypto. You pledge crypto as collateral and pay interest, which helps you cover short-term liquidity needs.
What are the benefits?
You can access funds using your crypto as collateral, without selling your holdings. Interest is charged only on the amount you borrow. There's no fixed repayment date — you can repay anytime.
What is collateral, and what does over-collateralization mean?
Collateral is the crypto you pledge as security to borrow stablecoins. Over-collateralization means your pledged crypto is worth more than the amount you borrow.
Which cryptocurrencies can I pledge and borrow?
Currently, you can pledge BTC or ETH and borrow USDT or USDC.
Applying for a Loan
How do I apply for a loan?
On the Loan page, tap [Start borrowing] and follow the on-screen steps.
What is the interest rate and how is it calculated?
On the Loan page, go to the Manage loans section and tap [Repay]. You can pay back in full or in part, with the amount deducted from your account balance.
How partial repayments are applied
How partial repayments are applied
A partial repayment goes toward unpaid interest first, then the principal.
How do I add or withdraw collateral?
Under the Manage loans section, tap [Adjust LTV]. From there you can add collateral if your risk increases, or withdraw some when it falls.
Releasing collateral on repayment
Releasing collateral on repayment
When you make a partial repayment, you can also choose to release any extra collateral from your loan.
How do I view my loan orders?
To see completed or liquidated loans, tap the [...] icon in the top-right corner of the page, then select [Completed orders] from the menu.
How do I view my asset overview?
Tap the [...] icon in the top-right corner of the page and select [Asset overview]. You'll see a combined summary of your Total outstanding and Total collateral balances in USD.
Understanding LTV and risk
What is the Loan-to-Value (LTV) ratio?
LTV measures your loan's risk. There are three key levels — initial, margin call, and liquidation.
What each LTV level means
What each LTV level means
Initial LTV: Sets the maximum amount you can borrow when you create your loan.
Margin Call LTV: If your LTV goes above the Margin Call threshold, you’ll receive notifications by email and app alerts, asking you to add collateral or repay part of your loan to lower your LTV.
Liquidation LTV: If your LTV goes above the Liquidation threshold, your collateral will be automatically sold to repay your loan and any applicable fees.
How is LTV calculated?
LTV = Total Outstanding / Collateral Value
Total Outstanding = Σ (Outstanding Principal + Outstanding Interest)
What is liquidation, and what happens if my position is liquidated?
Liquidation happens if you default or your LTV rises above the liquidation threshold. Your collateral is sold to cover what you owe, and a 2% penalty applies to the sale.
What this means for you
What this means for you
Once liquidation starts, you can't adjust your collateral or repay the loan. After the outstanding amount and penalty are covered, any leftover funds are returned automatically to your funding account.
You have to repay your loans. Don't pay any intermediaries.
Money Lender's Licence No: [1715/2025]
Hotline: (852) 2765 4472