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 USDT 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? ¹

Loan Paremeters

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/USDT exchange rate
Loan amount
The amount of cryptocurrency that is lent and you need to repay over the loan period
30927,835 USDT
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 %

Repayment Schedule

Amount, USDT
Type of payment
Payment of the original fee for the loan
Monthly loan repayment (interest payments)
Monthly loan repayment (interest payments)
Monthly loan repayment (interest payments)
Monthly loan repayment (interest payments)
Monthly loan repayment (interest payments)
Monthly loan repayment (interest payments)
Monthly loan repayment (interest payments)
Monthly loan repayment (interest payments)
Monthly loan repayment (interest payments)
Monthly loan repayment (interest payments)
Monthly loan repayment (interest payments)
Monthly loan repayment (interest payments)
Loan principal repayment (30927,86 USDT)

¹ All the above values are  an example to illustrate the algorithm for calculating the loan and it’s repayments. The actual repayment values should be recalculated at the time of loan disbursement using the financial indicators current on the date of disbursement


When is the Best Time to Use a Mirror Loan?

There’s no precise answer as it depends on market fluctuations and your risk appetite. It's important to consider that using a Mirror Loan requires you to have cryptocurrency as collateral for one year.

Is There a Minimum Amount for a Nebeus Mirror Loan?

You only need a minimum of €100 worth of BTC in your Nebeus account.

Who Are Mirror Loans Designed For?

Mirror loans are tailored for individuals looking to increase their Bitcoin holdings. This service enables clients to purchase additional Bitcoin through a streamlined process, effectively doubling their Bitcoin exposure.

What Happens if I Fail to Make Monthly Payments?

In accordance with the Terms and Conditions, Nebeus reserves the right to terminate the Mirror Loan agreement in case of delay or partial repayments. The loan debt, including principal and interest, will be withdrawn from the remaining collateral, and any leftover collateral will be returned to you.

How Was Nebeus’ Capital Raised to Offer Loans?

Nebeus secured €250 million from Equity First to enhance its cryptocurrency-backed lending services. This funding allows Nebeus to offer loans to customers, enabling them to leverage their cryptocurrency holdings without needing to sell them.

Additional Information

Nebeus focuses on loan collateral security, using Bitgo to safeguard crypto holdings. Bitgo, one of the world’s largest custodians with $64B in assets under custody, enhances Nebeus’ commitment to providing a secure, reliable, and compliant financial solution.

For more details, you can read the full article on Silicon Canals.

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