Credit Terms and Conditions
1.1. These Coinmotion Credit General Terms and Conditions (“General Terms”) govern the relations between you (“Client” or “you”) and Coinmotion Oy, business ID: 2469683-1, Kauppakatu 39, 40100 Jyväskylä, Finland (“Company” or “Coinmotion”), while you and Coinmotion are hereinafter separately referred to as “Party” and jointly – as “Parties”, in regard to your use of cryptocurrency credit facilities granted by Coinmotion, and constitute a legally binding agreement (“Agreement”) between the Parties.
The Coinmotion credit and also the interest on the credit must be repaid in full. If the market value of the collateralized virtual currencies decreases, their lending rate (LTV items 3 and 3.3.) Also decreases. If you are using your credit, it is very important that you monitor your credit progress and react in a timely manner to avoid potential losses
2.1. Applicable Law for the purposes of this agreement is Finnish law.
2.2. Digital Assets means any digital assets (such as cryptocurrencies, and/or stablecoins and tokenized assets), accepted by Coinmotion..
2.3. Interest means the indicated interest rate accrued in accordance with these General Terms and subject to revision at any time.
2.4. Coinmotion (secured) Credit. Coinmotion Credit means any ongoing credit or credit limit granted by Coinmotion. The credit agreement is valid until further notice. The credit can be used in full or in part after Coinmotion has approved the credit application and granted the credit. Credit amount means the maximum amount of credit available to the Borrower. The amount of credit granted will be stated in the credit agreement and will also be available to the Customer logged in on the Coinmotion platform..
2.5. Coinmotion Account means a personal or corporate business account, opened with the Coinmotion service, through which you can use the Coinmotion Credit and other Coinmotion services.
2.6. Coinmotion Platform means any Coinmotion website, mobile application and any other official Coinmotion communication channel, including the content and services made available on or through the same, and any updates, upgrades and versions thereof.
2.7. Collateral means any Digital Assets accepted as collateral for the Coinmotion Credit in the Coinmotion Platform (see Section 2.8. Pledge). If the market value of the collateralized virtual currencies decreases, their collateral value also decreases.
2.8. Pledge. As a result of this agreement, the Customer pledges to the Company as security for all current and future obligations of this Coinmotion Credit Account to the Company:
- Virtual currencies that are currently posted or transferred to the Coinmotion Credit Account;
- The pledge also includes the return of the Customer’s above-mentioned assets.
The Customer may not, without the express consent of the Company, pledge or otherwise order virtual currencies pledged to the Company in accordance with this Agreement to third parties.
2.9. The Credit amount and total cost of credit. Credit amount means the maximum amount of credit available to the Customer. The total amount of credit to be paid by the Customer consists of the total amount of credit and the total cost of the Customer. Costs are calculated on the assumption that the amount of credit is available for the assumed 12-month credit period and the applicable price list. These terms and conditions give an example of the total cost of the credit, calculated on the basis of the conditions prevailing at the time of the conclusion of the contract. The interest rate is fixed, but the total costs declared should only be considered as an indicative example of the actual total costs.
2.10. Collateral value of eligible virtual currencies. The company has the right to unilaterally determine what kind of assets it accepts as collateral at any given time and to determine the collateral values to be given to such assets at any given time, as well as other valuation principles and collateral procedures it applies. The collateral values given to the assets to be accepted as collateral at any given time are announced in the Company’s service. The company has the right to unilaterally calculate the collateral values to be given to collateral and also to unilaterally change its general collateral valuation principles and procedures. The company will notify of the change 14 days before the change takes effect. The amount of credit available to the customer varies in a manner corresponding to changes in collateral values.
3. Coinmotion Credit, Collateral and Liquidation event
3.1. Coinmotion will grant the Credit as a continuous euro-denominated credit (Continuous Credit) once the virtual currencies that become the collateral have been transferred to the Coinmotion Credit Account. All collateral virtual currencies will be displayed on the Coinmotion Credit Account. Collateral values are compared to the amount of credit valid at all times.
3.2. Coinmotion’s collateralized credit is monitored by the credit quality (LTV) reported in the Coinmotion Credit Account, which is checked in real time for the value of the collateral and the time the collateral is issued (change in the value of the collateral). Coinmotion dynamically calculates the value of the collateral based on the collateral values applied to the market value of the collateral according to the trading price corresponding to the realization price (selling price) of the relevant virtual currencies of the Coinmotion service.
3.3. You must always maintain the required collateral according to the LTV (Loan to value) threshold. The Required Collateral Amount means that the LTV of Coinmotion’s Credit should always be kept below 80%. Coinmotion will notify you by email linked to your Coinmotion account of the increase in LTV value (collateral value decreases) with notifications before it reaches 80%. If LTV reaches 80%, Coinmotion will automatically realize the collateral so that LTV is returned to the 70% level, otherwise following the principles in Section 3.4. This automation is implemented whenever the LTV reaches 80%. This decrease in the value of the collateral may lead to a situation where the entire collateral is realized after several realization transactions and the entire remaining credit is repaid through the realization of the collateral.
The customer is responsible for monitoring and responding to LTV changes to avoid automatic collateral realizations. If there is any security remaining after the credit has been repaid in full, the remaining security may be transferred to the customer’s Coinmotion account. Once the loan has been repaid in full, Coinmotion’s Credit is not active and does not accrue interest costs. Customers can reactivate the Credit feature by depositing the collateral in the Coinmotion Credit Account if the customer has a valid credit agreement.
3.4. Coinmotion’s right to realize collateral virtual currencies. In the event of a collateral shortfall, i.e. if the amount of credit available exceeds the threshold for the total lending value of collateral (LTV 80%) in the event of an over-lending in accordance with Section 3.3, the Customer is obliged to provide additional collateral immediately and without a separate request. If no additional collateral is provided, the Company has the right to realize the amount of virtual currencies it deems necessary in accordance with section 3.3. Realization is carried out automatically without consulting the Customer and without applying for a judgment or decision, or without complying with the formalities provided by law or declaring the pledge for sale. The company also has a corresponding right if the Customer exceeds the amount of credit agreed in the credit agreement, i.e. the maximum amount of credit. The company implements the collateral taking into account the Customer’s interest. However, in order to avoid a credit loss, the company has the right to freely choose the sufficient amount and type of assets to be sold and the time of realization in order to correct or avoid over-lending. The Customer is responsible for all costs and fees as well as other possible payments incurred by the Company for the realization of the collateral. The company is not responsible for any tax consequences that may arise for the Customer in realization situations. The Customer is obliged to continuously monitor the total lending value of the funds in the Credit Account at any given time and to ensure that the lending value does not exceed the threshold value in section 3.3. The customer must also ensure that the over-lending situation does not arise, for example, as a result of changes in the market value of the collateral or changes in the lending values brought into effect by the Company or interest or fee charges.
4.1. The Customer is obliged to pay the Company interest on the Credit according to the annual interest calculated on the loan drawn at any given time. The interest is calculated on one standard day per calendar month, using 365 days a year as a divisor. Interest is calculated on the credit in use from the day on which the Customer draws the credit. The company has the right to change the interest calculation criteria.
4.2. The interest rate valid at the time of concluding the contract is specified separately in the contract form. The interest accrues daily and is calculated for the maximum credit balance of each day. Accrued interest will be debited from Coinmotion’s euro account on the first calendar day of each month or in connection with the repayment of the credit. No separate reference interest rate has been set for the interest rate, but the Company has the right to change the credit interest rate in accordance with its own announcement. The company notifies the Customer of the change in interest rates before the change takes effect.
- The interest rate is deducted in full from the euros available in the customer’s Coinmotion euro wallet if there is sufficient balance in the euro wallet
- The interest is capitalized and added to the balance of the Coinmotion loan (capitalized, ie added to the amount of the loan principal and the amount of the interest increases the amount of the loan accordingly)
- If Coinmotion’s Credit is repaid in full during the monthly interest calculation period, the accrued interest accrues until the repayment period and is rounded to the nearest euro cent at the time of repayment.
- Interest capitalized during a calendar year will be charged (on January 1 of each year) to the Customer’s collateral.
5.1. The credit agreement is valid until further notice. Coinmotion has the right to terminate the credit agreement and the credit for repayment with a two-month notice period. Coinmotion may terminate any unused credit or any portion thereof immediately without notice.
6. REPAYMENT AND WITHDRAWAL
6.1. You can pay the Coinmotion credit, including accrued interest, at any time and in any amount during the term of the credit by transferring euros from your Coinmotion account to repay the Coinmotion Credit. In addition, the customer has the right at any time to repay the credit prematurely in full or in part. If the Customer wishes to terminate the credit, the termination must be notified in writing.
6.2. All repayments are allocated exclusively to the amount of the remaining capital of the Coinmotion Credit loan and to the accrued interest on an accrual basis.
6.3. Once Coinmotion’s credit has been repaid in full, any remaining collateral can be transferred back to the customer’s Coinmotion account.
7. TERMINATION OF THE AGREEMENT
7.1. Coinmotion has the right to terminate the credit agreement and the credit for repayment by observing a two-month notice period. Coinmotion may terminate the unused credit or part of the unused credit immediately without notice.
8. NOTICES AND ENTERNAL REMEDIES
8.1. All notices required or made by Coinmotion to Customer in accordance with these General Terms and Conditions shall be deemed to have been validly received when addressed to Customer’s last used email address, postal address or telephone number. In addition, we can provide notifications by submitting to the Coinmotion platform.
8.2. All notices required or made by Customer to Coinmotion in accordance with these General Terms and Conditions, including complaints, will only be sent in Finnish or English by email to [email protected]
8.3. The Customer has the opportunity to submit the dispute between the Company and the Customer regarding the Credit to the Insurance and Financial Advisory Board or the Banking or Securities Board acting in connection therewith (Insurance and Financial Advisory Board, Porkkalankatu 1, 00180 Helsinki). The request must be made in writing.
9.APPLICABLE LAW AND SUPERVISORY AUTHORITY
9.1. The agreement is governed exclusively by Finnish law.
9.2. All disputes arising out of or in connection with the agreement (general terms and conditions), unless the parties have agreed amicably, will be settled in accordance with Finnish law and the Finnish legal system. Coinmotion’s operations are supervised in terms of procedures by the Finnish Financial Supervisory Authority, PO Box 103, FI-00101 Helsinki.