Borrow Policy

The XCrypt Borrow Policy outlines the terms and conditions governing the borrowing feature within the XCrypt platform. Users, by utilizing the borrowing feature, agree to comply with the terms set forth in this policy.

• Accepted Collateral

XCrypt exclusively accepts ETH as collateral for borrowing $XCRYPT tokens. Users engaging in borrowing activities must ensure that their collateral consists of the accepted asset to initiate the loan.

• Collateralization Ratio

Users agree to collateralize their ETH assets at a ratio of 115% during the borrowing process. This means that the value of provided ETH collateral must equal or exceed 115% of the value of the borrowed $XCRYPT token. Liquidation may occur if the token price significantly exceeds the collateral.

• Interest Rate

The interest rate for borrowing $XCRYPT tokens against ETH collateral is set at 0%. XCrypt does not impose any interest charges on borrowed amounts.

• Borrowing Limits

Users are subject to borrowing limits determined by their collateral value and the prevailing collateralization ratio. It is the user's responsibility to stay informed about their borrowing limits and adjust their collateral accordingly.

• Liquidation

If the collateralization ratio falls significantly below the specified threshold, XCrypt reserves the right to liquidate the collateral to cover the outstanding borrowed amount. Users will be notified of impending liquidation, providing an opportunity to rectify the situation.

• Repayment

Borrowed $XCRYPT tokens must be repaid within the agreed-upon timeframe. Users are responsible for monitoring their borrowing status and ensuring timely repayment to avoid potential liquidation or additional consequences.

• Amendments

XCrypt reserves the right to amend this Borrow Policy at any time. Changes will be effective upon posting on XCrypt. Users are encouraged to review this policy regularly to stay informed about any updates.

• Risks and Responsibilities

Users engaging in borrowing activities acknowledge and accept the inherent risks associated with such transactions. It is the user's responsibility to carefully assess their financial situation and make informed decisions regarding borrowing against ETH collateral.