FAQ section of lz lending

FAQ

29 articles in this collection

LZ Lending's profit comes from fees but mostly from returns generated by crypto loans lending to our members and institutional borrowers who borrow cryptocurrency.
Follow this URL to see fees and limitations: Read More
Yes, we pay the interest in the currency of your deposit. Ex: if you deposit BTC, the interest will accrue and will be paid in BTC.
You can easily calculate your future earnings by using our Interest Calculator on the Home page
The minimum amount you can deposit is equivalent of $50.
Yes, you can withdraw at any time, and we won't charge any additional fees.
First deposit funds in your wallet then access the Interest Account page and click on deposit to fund your Interest Account.

As part of LZ Lending's Know-Your-Customer, Anti-Money Laundering & Suitability requirements, a verified identification document may be required. We recommend uploading a photograph of your valid passport, driving license or another government-issued document.

LZ Lending is committed to keeping any or all personal information collected of those individuals that visit our website and make use of our platform accurate, confidential, secure and private. As a part of our business, we are required to verify the identity of members who apply for a financial product through our platform.

To start borrowing on LZ Lending, all you need is a collateral asset to secure your loan. You can never borrow more than the value of your collateral.

Further, you’ll need to complete KYC verification. It’s a fully automatic process that takes only a couple of minutes.

  1. Deposit your collateral assets to the platform.
  2. Go to Instant Loans. Choose a loan term, the quantity of crypto collateral, LTV, and therefore the amount you would like to borrow. The interest is fixed and varies for various assets and depends on the chosen LTV. Setting loan parameters, you can see available collaterals, assets, and rates. When you’re ready, click on the Get Loan Now button.
  3. Now you can find the loan issued to you in “My Loans” and can withdraw borrowed money from “My Wallet”.
  4. Repay your loan according to the repayment schedule or ahead of it if you want. We charge no penalties for early repayment.
  5. Once the loan is fully repaid, your collateral funds become available for withdrawal in My Wallet.
You can borrow BTC, ETH, XRP, BCH, LTC, USDT, TUSD, USDC and DAI.
No, LZ Lending is not running a credit check.
LZ Lending doesn't run a credit check since there is no personal guarantee on loan. The loan is secured by cryptocurrencies, like Bitcoin, provided by the borrower to collateralize their loan.

It's a common thing in asset-backed lending to secure your cryptocurrency loan with higher-value collateral (over-collateralization). A ratio of the amount of loan against the market value of the asset is a Loan-to-Value ratio (LTV).

On LZ Lending, a borrower can set up an LTV ratio in the range from 5% to 70%. Lower LTV ratio increases the chances of loan approval and lowers interest rates. In case of a market fall, your crypto isn't likely to be liquidated to secure the lender's investment. Higher LTV means that borrower will have to act rapidly in case of a terrific market situation. The good news is that LZ Lending won't give you a chance to miss out on this.

Formula to calculate LTV:

LTV = (Loan Amount) / (Collateral Value)

Go to My Loans, select the loan you would like to pay and click on the "Pay" button for the instalments to be paid.
LZ Lending will automatically try to deduct your payment from current balance; if your balance is 0, we will deduct it from your collateral.
If the value of your digital asset drops enough to cause a breach of the agreed-upon loan-to-value (LTV) threshold, you will be allowed to either add additional collateral or make an additional principal payment, bringing your collateral account balance back to equilibrium. If you cannot do this, your collateral will be going to liquidate.
If the threshold for collateral liquidation is breached, a liquidation event is triggered, which is co-signed by other parties. Liquidation events may include fees which are passed along to the borrower.
Loans with LZ Lending may trigger taxable events. We suggest consulting with a licensed tax professional to determine how your LZ Lending's loan will impact your tax reporting. You can find transaction history under Wallets tab.
Yes. You continue to own your asset, but your lender features interest and hypothecation against the asset until your loan matures or is paid fully.
Yes, you can deposit any asset or collateral that we accept on our platform.
LZ Lending ct it from your collateral.

With a principal & interest loan, the borrower pays back the interest that he is paying an equivalent amount monthly until the loan matures. Early in the amortization schedule, a majority of the payment will be going towards the interest and later within the schedule; it'll go towards the principal of the loan.

With an interest-only loan, the borrower pays back the interest in the loan first. For example, in a 1-year loan, the borrower would pay only the interest of the loan for 11 payments with 1 balloon payment due for the interest and principal of the loan at the end of the loan when the loan matures.

The amount you can borrow is only limited by the collateral you have deposited in your account.
The minimum amount you can borrow is equivalent of $100.
The loan approves instantly.

Your most basic cryptocurrency loan questions and curiosities explained

For many, the idea of cryptocurrency is intriguing – but very confusing. While there are millions of excited and interested individuals looking to build their wealth through blockchain and cryptocurrency investment, the initial learning curve can seem daunting. While many beginners feel intimidated and uncomfortable asking questions about the basics of cryptocurrency, we feel that truly understanding the process and the safety of the product will help ease the minds of those wondering about the currency of the future. As an innovative cryptocurrency lending platform, we often receive many questions about the process and the safety of the products. In this article, we will address three of the largest questions we receive at LZ Lending. Our goal is to help ease minds, calm fears, and help open the door to financial growth and freedom for millions of individuals throughout the world.

To simply say your assets are secure with LZ Lending is an understatement. Utilizing our secure cloud infrastructure along with modern encryption standards, LZ Lending offers the highest level of digital and physical security available in the world. By utilizing a web application firewall, DDoS protection, regular vulnerability scans, secure software development life cycle (SSDLC), PCI DSS certification, and account takeover protection, LZ Lending proudly offers an iron proof protection plan for your cryptocurrency. Beyond those incredibly rigorous standards, we also offer Bug Bounty programs – hiring ethical specialists and white hat hackers to constantly analyze and examine our platform for potential vulnerabilities designed to prevent problems before they occur.
LZ Lending stores all cryptoassets in offline, cold, multi-signature wallets, meaning that all transactions are held offline utilizing separate devices that have never been connected to each other on the network. The process includes several different individuals for maximum security and safety. The multi-person and multi-signature requirement means that moving your crypto assets is not possible without at least three to eight different individuals. The end goal is to keep your money stored securely, and unable to move without your expressed consent.

Frankly, we have the most robust security protocols, most in-depth storage system, and well-respected reputations in the industry. LZ Lending has become a cryptocurrency lending and funding platform giant for a reason – we take our reputation, security, and our clients needs incredibly seriously. Our entire platform is based on trust, expertise, and reputation – and at LZ Lending, we will do nothing to sully our good name, and with the added security of $150 million dollar insurance from Ledger Vault, our clients can rest assured that the LZ Lending team is taking all the necessary steps to earn and keep your trust.

At the end of the day, our true goal is to offer exceptional services for our clients cryptoassets, all while helping to grow the economy of the future through secure lending and borrowing between interested investors and business leaders. LZ Lending is committed to offering secure cryptocurrency and blockchain services that will help grow wealth and lead the financial revolution of the future.