Introducing the APX Line of Credit

Up to 60% LTV. Five-year revolving facility. 0% origination fee. 0% liquidation fee. 0% early-prepayment fee.

Most crypto-backed lending products are still built around a pretty simple idea: you need money, you take out a loan.

That works. Our own fixed-term loans work that way, and for a lot of borrowers that's exactly the right product.

But what if you don't need liquidity once?

What if you want ongoing access to capital without applying for another crypto-backed loan every time something comes up? Or what if you want the flexibility to pay back what you've borrowed whenever you want, without paying a fee for doing it?

That's what we built the APX Line of Credit for.

What is a fixed-term crypto-backed loan?

A fixed-term crypto-backed loan is generally a single borrowing event. You post Bitcoin or Ethereum as collateral, borrow a specific amount and repay that loan over a defined term.

If you need $100,000 today, that works perfectly well.

The problem is that liquidity needs rarely arrive as one clean number.

Maybe it's $50,000 for a purchase today. Another $30,000 for an investment three months from now. A tax payment next quarter. A business expense six months later.

With a fixed-term loan, each new need means another borrowing event. Another loan request. Another approval. Another transaction.

Even though it's the same borrower, the same collateral and the same lender.

We think there should be a better way to borrow against Bitcoin or Ethereum when the need for capital is ongoing or fluctuating rather than one-time.

The APX Line of Credit

The APX Line of Credit is a five-year revolving crypto-backed line of credit secured by Bitcoin, Ethereum or both.

You establish the facility once. From there, you can draw what you need, repay principal when you want and redraw available credit again without submitting a new loan application every time.

Interest accrues only on what you've actually borrowed.

That last part matters.

If you have a $500,000 facility and only have $100,000 outstanding, you're paying interest on $100,000. We don't charge interest on the other $400,000 simply because you have access to it.

Your available credit is also not frozen based on what your crypto was worth the day you opened the facility - but varies with the market value of collateral posted at any given time and how much you've already drawn.

So if the value of your Bitcoin or Ethereum falls, your available credit can fall with it. If the value rises, your borrowing base can increase again, up to your approved facility limit (usually 60% of the total value of your collateral)

That's an important distinction between a crypto-backed line of credit and a traditional unsecured line of credit.

Three things really define the product:

1. It's revolving. Draws add to one outstanding balance instead of creating a new loan. Repay principal and, once the repayment settles, that borrowing capacity becomes available again, subject to your approved limit and current collateral value.
2. You pay only for what you use. Interest accrues daily on your outstanding balance, not on the portion of the facility sitting unused.
3. It's still collateral-driven. You can generally draw up to 60% of the current value of your eligible collateral, subject to your approved LTV. If your LTV reaches 90%, our 90/85 Standard sells only enough collateral to bring the LTV back to approximately 85%, with no liquidation fee.

Bitcoin and Ethereum can work together

There's another important difference between the APX Line of Credit and our fixed-term crypto-backed loans.

With an APX fixed-term loan, the loan is backed by either Bitcoin or Ethereum.

With the Line of Credit, both Bitcoin and Ethereum can count toward the same borrowing base at the same time.

Say you have $200,000 worth of Bitcoin and $100,000 worth of Ethereum in your facility.

We don't make you choose which asset the Line of Credit is secured by. We look at the combined current market value of both assets.

In this example, you have $300,000 of eligible collateral. At a 60% maximum LTV, that collateral could support a line of credit up to $180,000.

Add more Bitcoin? It can increase your borrowing base.

Add more Ethereum? Same thing.

And because both assets support the same facility, what ultimately matters is the combined current value of the eligible collateral securing your Line of Credit.

You don't need a separate Bitcoin line of credit and Ethereum line of credit.

Both assets can work together inside one revolving facility.

What reapplying actually costs you

Say your collateral supports a $200,000 Line of Credit when the facility is established and you initially draw $50,000.

Three months later, something comes up and you need another $30,000.

With a fixed-term structure, that may have to be another loan or another approval process.

With the APX Line of Credit, it's simply another draw.

And this is where the distinction around collateral value matters.

We don't look back at the value of your crypto three months earlier and say, "You were approved for $200,000, so there's automatically $150,000 left."

We look at your collateral now.

If the current value of your Bitcoin and Ethereum supports at least $80,000 of total borrowing capacity, you can draw the additional $30,000. Your outstanding principal moves from $50,000 to $80,000 and interest accrues on that amount.

If your collateral has fallen enough in value that it no longer supports the additional $30,000, you won't have the full amount available to draw.

If your collateral has increased in value, your borrowing capacity will increase as well.

We were looking to create a product with absolutely full flexibility for our clients!

How the mechanics work
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Every draw adds to one outstanding balance.

Interest accrues daily based on your end-of-day outstanding balance and is billed monthly. You can repay principal at any time, and there is no early-prepayment fee.

Accrued but not posted interest is not due unless posted. Any interest posted is payable on the day it's due. Any interest that's not paid on the day it's due gets added to the principle borrowed the next day. Any payments made go towards paying off the principle amount first. Reducing principal immediately reduces the balance on which future interest accrues.

Once principal has been repaid and the payment has settled, that amount becomes available to borrow again, subject to your approved facility limit and whatever your collateral supports at that time.

For CAD repayments made by pre-authorized debit, settlement takes five days before that borrowing capacity becomes available again. USDC repayments do not have the same processing delay.

There is no fixed principal repayment schedule. You can carry a balance, pay part of it down or take the balance to zero.

And taking the balance to zero does not close the Line of Credit.

The facility can remain open for the remainder of its five-year term as long as you continue to meet the eligibility requirements. If you need liquidity again later, you can draw again against your available credit.

One qualification: minimum interest applies if the facility is closed within the first three months.

The minimum draw is $10,000 CAD or USDC in Canada and $25,000 USDC in the United States.

Why the rate is tiered

The Line of Credit is priced slightly higher than a comparable APX fixed-term loan intentionally to account for the added flexibility.

A fixed-term loan is predictable from a funding perspective. We know how much you're borrowing and when the loan ends.

A five-year revolving facility is different. We're giving you the ability to borrow, repay and borrow again as your needs change.

That flexibility has a cost and we didn't want to hide that cost in origination fees, unused-line fees or other charges.

The rate is based on your outstanding balance, not the amount of unused capacity sitting in the facility.

Balances over $1,000,000: 10.49% annual interest

Balances from $100,000 to $1,000,000: 11.49% annual interest

Balances below $100,000: 11.99% annual interest

Larger balances are more efficient for us to fund and manage relative to their size, so they get a lower rate.

We charge no origination fee, no unused-line fee for standard retail and private-client facilities, and no early-prepayment fee.

You pay interest on what you actually borrow. That's it.

Collateral, LTV, and liquidation

This is probably the most important part of understanding how a Bitcoin-backed or Ethereum-backed line of credit works.

Your approved facility limit and your available credit are not the same thing.

Your approved facility limit is the maximum size of the facility we've approved and generally represents 60% of the total value of your collateral at the time of draw.

Your borrowing capacity is your approved facility limit minus how much you've already drawn minus any accrued but not posted interest charges.

In plain English, you can never just assume that because you were originally approved for $200,000 and have only drawn $50,000, another $150,000 is automatically available.

The markets move, so your borrowing capacity moves too, either up or down.

Every new draw is checked against the value of your collateral at that time and must keep you within your approved LTV.

The APX Line of Credit generally allows borrowing up to 60% LTV, or a lower limit if one has been established through your appropriateness review.

And remember, if you hold both Bitcoin and Ethereum in the facility, the current value of both assets counts toward that collateral base.

If your LTV rises above 80%, we send automated warnings every six hours while it remains above that level. There is no mandatory margin call.

If your LTV reaches 90%, our 90/85 Standard kicks in.

We sell only enough Bitcoin or Ethereum to bring your LTV back to approximately 85%.

We don't liquidate the entire position.

And we charge 0% liquidation fees.

We built it that way for a pretty obvious reason: if collateral has to be sold to protect the loan, we think the objective should be to sell as little of the borrower's crypto as reasonably necessary, not as much as possible.

When is interest due

Interest accrues daily and is billed monthly. You have full visibility of how much interest has accrued at any point in time and when it's due. You can pay that amount earlier or later, but if you don't pay the interest on the due date, the next day it gets added to your outstanding balance.

That distinction matters because your LTV includes accrued interest whether it has been billed yet or not.

Your Bitcoin and Ethereum are still moving in the market and your LTV is still being calculated in real time. If the combination of your outstanding balance, accrued interest and falling collateral value pushes the account to the 90% liquidation threshold, the normal 90/85 Standard still applies.

Who this is for

The APX Line of Credit is for people and businesses whose liquidity needs don't show up once.

Maybe you want capital available for investments as opportunities come up.

Maybe you have recurring tax obligations or large purchases spread throughout the year.

Maybe your business holds Bitcoin or Ethereum on its balance sheet and needs working capital for payroll, inventory, acquisitions or operating expenses without selling its crypto treasury.

Maybe you hold both Bitcoin and Ethereum and want to use the value of both assets to support one pool of available credit.

Or maybe you simply want the ability to borrow against your crypto when you need liquidity without having to start from scratch every time.

If you know exactly how much you need today and don't expect to borrow again, a fixed-term crypto-backed loan may actually be the better option. It carries a lower rate and there is no point paying for revolving flexibility you don't need.

If your capital needs change over time, that's where the Line of Credit starts to make a lot more sense.

Minimum draw amounts

‍$10,000 minimum CAD or USDC draw in Canada. $25,000 USDC in the U.S.

Up to 60% LTV.

Five-year revolving facility.

0% origination fee.

0% liquidation fee.

0% early-prepayment fee.

That's the APX Line of Credit.

Applications are open now. Apply today at http://apxlending.com

For any support inquiries, you can refer to FAQs here or get in touch with our team at support@apxlending.com