💡 Note: This article applies to app versions prior to v3.0.0.
If you see a credit balance in your credit account, it means you have used the Credit feature by manually pledging your assets as collateral.
How Manual Pledging Works
Unlike a standard wallet, the Credit feature requires you to move funds between accounts to unlock spending power:
Manual Transfer: You move a specific amount of crypto from your Funding Account to your Credit Account.
Immediate Pledging: Once transferred, these funds are immediately pledged as collateral. While they cannot be withdrawn while you have an active balance, they grant you a credit limit based on the value of those assets.
Creating a Balance: When you spend using this limit, a credit balance is created. This represents the total amount you have borrowed against your pledged assets to complete your transactions.
How Your Credit Balance is Calculated
Spending: Every time you use your credit limit, the transaction amount is added to your total balance.
Interest: A fixed interest rate of 0.05% per day is applied.
Daily Simple Interest: Interest is calculated daily based on the principal portion of your credit balance.
Non-Compounding: Interest is added to the total balance but does not generate further interest itself.
Why maintain a Credit Balance?
Using Credit instead of selling your crypto allows you to keep your assets while still having the liquidity you need for daily spending.
How to Repay the Credit Balance
You can settle your balance at any time to unlock your pledged assets:
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 repayment method:
Repay via Balance: Use the available funds in your balance to pay off the amount.
Repay via Collateral: Use a portion of your pledged assets to settle the balance directly.
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