Avocados MinerBank offers loans in US dollars that are secured by your mining assets. This means that you can borrow US dollars by using your mining assets as collateral. The loan application process is quick and easy, taking just a few minutes to complete. Once approved, clients can receive their funds in as little as 60 minutes, either directly into their bank accounts or wallets. This can be a convenient way to access funding using your mining assets as collateral.
We provide collateralized loans for miners hosted in our mining facility, which is a benefit program for miners hosted in the Terere Miner mining facility under the Bitheime group.
A decrease in the value of your collateral may result in a margin call in a miner loan. This can be determined by the loan-to-value (LTV) ratio specified in your loan agreement. If the value of your collateral falls and the LTV of your loan increases, a margin call may be triggered. To avoid a margin call, you may need to add more collateral or pay down the loan balance. The first margin call typically occurs at an LTV of 70%, and you will have 72 hours to take action to maintain a healthy LTV ratio. If you do not take action within this time frame, or if your LTV reaches 80% or above, the lender may liquidate a portion of your collateral to bring the LTV back to a healthy level.
LTV (%) = Loan Amount ÷ Value of Collateral. For a collateralized loan, such as a miner loan, the LTV ratio determines how much collateral you need to provide to borrow the funds. The lender will hold onto the collateral until the loan is repaid. Once the loan is fully repaid, you will receive the collateral back in full. Collateralized loans are a type of loan that requires you to provide an asset, in this case, a mining asset, as security for the loan.
Many people who own mining assets wonder if they can use them to make major purchases, such as buying additional mining equipment or a house. However, some mortgage lenders do not accept mining assets as collateral. One option for using your mining assets to fund a major purchase is to take out a miner-backed loan. These loans allow you to borrow cash using your mining assets as collateral. The funds can then be used for a variety of financial goals, such as making a down payment on more mining equipment, investing in real estate, buying a car, starting a business, financing home renovations, or refinancing high-interest debt.
