According to its whitepaper, SALT was the first provider of cryptocurrency-backed loans creating the niche lending market. The company is regulated and holds numerous lending, collection and loan servicing licenses.
SALT enables multi-collateral loans with fixed rates, flexible terms and several loan to value (LTV) ratio options. Payouts are available in both cash and stablecoin. Prepayment penalties and bank-style origination fees are waived. The maximum loan-to-value (LTV) ratio ranges from 30% to 70%. The interest rates vary based on the selected loan term and LTV. The platform also functions as an insured cold storage wallet, and hosts its own SALT token which users can leverage to decrease loan interest rates among other things. The company lends in the United States and internationally, to individuals and institutional entities such as mining businesses and hedge funds. The company has live customer service, client support and best-in-class compliance programs to meet the needs of its users.
The SALT Platform was designed with the volatility of cryptocurrency and wealth preservation in mind. In the event of a margin call, assets are automatically converted to a stablecoin in lieu of liquidation, a unique feature in the lending space.
Here's how it works:
- When a loan reaches a forced liquidation LTV, instead of immediately selling collateral assets to restore the health of the loan, the SALT Platform converts some portion of the collateral assets to a stablecoin thus preserving collateral value.
- Once the health of the loan has been restored, the borrower can ask to convert the loan collateral back to the original cryptocurrency assets, such as BTC, ETH, LTC, etc…
- This gives users the opportunity to convert assets as the market is coming back up, creating the potential for users to not only preserve wealth, but grow it.
The SALT Platform has a loan health notification system consisting of email, phone, text and app alerts, available in both iOS and Android. Notwithstanding a general policy of giving borrowers notice of a margin deficiency. The system may liquidate or convert pledged assets without notice to borrowers to ensure that minimum maintenance requirements of the loan are satisfied. The liquidation or conversion of pledged assets could result in adverse tax consequences. SALT advises borrowers to consult their tax advisor in order to fully understand the implications associated with pledging digital assets as loan collateral.