What is a Mirror Loan and How Can It Benefit You?

What is a Mirror Loan and How Can It Benefit You?

A Mirror Loan is a medium-term cryptocurrency investment tool that allows you to invest your existing cryptocurrency in the purchase of additional cryptocurrency, specifically Bitcoin, thereby doubling your position. This innovative financial product enables you to leverage your current crypto holdings to potentially maximize your returns.

How It Works?

When you request a Mirror Loan, Nebeus issues funds in USDC to buy additional cryptocurrency for you. The cryptocurrency you already own is used as collateral for these funds. The loan amount is repayable over the term of the loan. Here’s a step-by-step breakdown of how it works:

  1. Collateral: You set an amount of Bitcoin as collateral.
  2. Purchase: Nebeus buys an equal amount of Bitcoin for you, matching the value of your collateral.
  3. Loan Issuance: The newly purchased Bitcoin, along with your initial cryptocurrency, serves as collateral, effectively doubling your position.
  4. Repayments: As long as you make the required monthly payments and repay the loan at the end, you’ll end up with twice the cryptocurrency you started with.

Benefits of a Mirror Loan

  1. Increased Investment: Expand your Bitcoin holdings without selling your existing cryptocurrency.
  2. Potential Profit: If the value of Bitcoin rises, your investment grows, potentially yielding significant profits.
  3. Making Your Crypto Work: Your current crypto holdings continue to be yours and can appreciate in value while you leverage them to acquire more Bitcoin.

When to Use a Mirror Loan

A Mirror Loan is ideal when you expect the value of Bitcoin to increase. It allows you to capitalize on potential gains while maintaining ownership of your original crypto assets. This makes it a powerful tool for those looking to enhance their cryptocurrency portfolio strategically.

Applying for a Mirror Loan

Step-by-Step Guide

  1. Become a Nebeus User:

  2. Login:

    • Access your Nebeus account

  3. Navigate to Loans:

    • Go to the "Loans" section and select "Mirror"

  4. Set Loan Parameters:

    • Define the parameters of the loan and confirm your intention to receive it

How the Loan and Repayments are Calculated?

Loan Parameters


Parameter

Description

Value

Collateral

You send us the cryptocurrency that will be used as a collateral

0,5 BTC

Amount of currency purchased (loan principal)

You order to buy an amount of cryptocurrency for you that matches the value of your deposited collateral

0,5 BTC

Exchange rate

We buy cryptocurrency at the current BTC/USDC exchange rate

60642,813827

Loan amount

The amount of cryptocurrency that is lent and you need to repay over the loan period

30927,835 USDC

Loan term

The time the loan is active and the borrowing is being done

12 months

Loan rate

The interest rate that is applied for the amount we lent you

8 % per year

Original fee rate

Upon issuance, we charge a one-time origination fee based on the loan amount

2 %





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