Documentation Index
Fetch the complete documentation index at: https://docs.roxom.com/llms.txt
Use this file to discover all available pages before exploring further.
Coming soon. Repayment mechanics described here apply at the launch of the Bitcoin-Backed Credit Line.
TL;DR
Interest accrues daily (compound) on the total outstanding balance at a rate of 0.0192% per day. There are no mandatory periodic payments. Repay partially or in full at any time, with no penalty. Partial repayments apply to accrued interest first, then principal. Collateral is released only after full repayment. You can also top up collateral to lower your LTV or reduce collateral as long as the resulting LTV stays at or below 50%.Quick facts
| Item | Value |
|---|---|
| Compounding | Daily |
| Daily interest rate | 0.0192% (7% ÷ 365) |
| Accrual schedule | Every 24 hours from loan creation |
| Mandatory periodic payments | None |
| Early repayment | Allowed, no penalty |
| Partial repayment | Allowed, no penalty |
| Order of application | Accrued interest, then principal |
| Collateral release on partial repayment | No (collateral stays locked until full repayment) |
| Top-up | Add BTC at any time to lower LTV |
| Reduce collateral | Allowed if resulting LTV ≤ 50% |
| Origination fee | None |
| Liquidation fee | 2% on the BTC sold during liquidation |
How does interest work?
- Interest accrues daily on the total outstanding balance (principal plus previously accrued interest). This is daily compound.
- The daily rate is
0.07 / 365 = 0.0192%. - Each accrual runs exactly 24 hours after the previous one, starting from the loan creation timestamp (not at midnight UTC).
- There are no mandatory periodic payments.
- Interest is settled at repayment, together with principal.
Debt projection example
For a USDT 20,000 loan at 7% APR with daily compounding and no repayments:| Period | Total debt |
|---|---|
| Day 1 interest | ~USDT 3.84 |
| Month 1 | USDT 20,115 |
| Month 6 | USDT 20,702 |
| Year 1 | USDT 21,449 |
Can I repay early?
Yes. You can repay at any time, partially or in full, with no penalty.- A partial repayment is applied to accrued interest first, then principal.
- A partial repayment does not release proportional collateral. Collateral stays locked until the loan is fully repaid.
- You can always adjust your collateral as long as the LTV thresholds are respected. See the section below.
Manage collateral
You can adjust the BTC backing your loan at any time:- Top-up. Add BTC to your existing loan to lower the LTV. This is the main preventive action against a margin call: you increase the collateral without paying down debt.
- Reduce collateral. Withdraw part of your BTC collateral, as long as the resulting LTV stays at or below 50%. The system validates the post-reduction LTV before unfreezing the BTC.
Are there additional fees?
| Fee | Amount |
|---|---|
| Origination fee | None |
| Prepayment penalty | None |
| Liquidation fee | 2% on the BTC sold during a liquidation (partial or full) |