SALT Loans discussion area


#1

Is anyone taking out or considering taking out a SALT loan?

In addition to being a CPA I’ve worked for banks and would be interested to know what kinds of terms they are offering to borrowers. Things like:

  1. Length of loans
  2. Interest rates (are the rates like payday loans or like secured mortgage loans or …)
  3. Floating or fixed interest rates and what are they based on (eg Prime, Prime Plus, etc)
  4. Collection terms if you fail to pay the loan off
  5. Security given (other than the cryptocurrency, if any. Say you are buying a Lambo or a Rolex with the loan - do you also pledge that)
  6. Where payments are made (to what country and in what FIAT)
  7. How often you must make payments
  8. Whether they demand you have an autopay/ automatic draft on your checking account
  9. Protections you receive if you are unable to make payments

Just interested. Maybe some of our group members are also interested in discussing this.


#2

Great questions here my friend. I’m interested…


#3

Following hahshdjdnfj


#4

Everything you need to know about their lending membership, I’m reading through it now as well


#5

Doing the same. It’s pretty high level though and lots of stuff seems to have been omitted.

I’m a contracts reading guy. Just my background.


#6

Collateral - If your loan exceeds the value of your pledged asset you’ll get a “maintenance call” where you must add assets to the loan package.

Some of the issues here are:

  1. What if you are unable to add collateral - What happens? They sell your position down to meet their requirements and then perhaps your entire pledged position. You now have an unintended taxable event.
  2. Can you pledge other assets – Your new Lambo, NYSE listed stocks, or the Rolex for example?
  3. What is the formula they are using for the LTV (loan-to-value) calculation? Is it an EOD (end of day) or a (say) 2/3/5 day average?
  4. Where must you deliver the new collateral
  5. When must the new collateral be delivered?

There is no disclosure on interest rates. My presumption is that these are, relatively speaking, high interest loans as they are not secured by conventional assets.


#7

Please keep updating us with more “alarming” clauses. I’m sure there will be plenty. :+1:
Im thinking of investing some money in SALT coin.


#8

Some cold comfort. They must comply with US banking and credit laws.

Per their abstract (numbering is mine):

SALT Lending Holdings, Inc., and the loans originated through the SALT Platform, must comply with applicable state and federal lending and usury laws, such as:

  1. the federal Consumer Credit Protection Act,
  2. the Truth-in-Lending Act, the Equal Credit Opportunity Act,
  3. the Fair Debt Collection Practices Act,
  4. the Dodd-Frank Wall Street Reform and Consumer Protection Act,
  5. the Servicemembers Civil Relief Act,
  6. the Military Lending Act,
  7. the Bank Secrecy Act,
  8. the USA Patriot Act,
  9. the Electronic Fund Transfer Act,
  10. the Electronic Signatures in Global and National Commerce Act (ESIGN)
  11. and other federal and state laws governing privacy, data security and prohibiting unfair or deceptive business practices.

#9

So yes, you will probably be contacted by a collections firm if you fail to pay off the loan.

Always pay your obligations guys!


#10

Heisenberg,

It’s a buyer beware loan. The unhappy twists, which SALT may directly want to clarify are:

  1. the operational and borrower notification details when you get close to 100% loan-to-value (LTV). You never want to be anywhere close to that number,
  2. the interest rate (undisclosed by SALT but assumed to be just within each states’ usury rules),
  3. the loan origination fees (currently barely mentioned / undisclosed by SALT),
  4. the varying “membership” fee (which is just an other tacked on loan fee),
  5. lack of disclosure of typical day 1 LTV’s (generally a hotly contested and negotiated ratio),
  6. (guys?? fill in a few more for this discussion)

As to #1 above you may actually want to take out a standby home equity loan to cover yourself when/ if valuations become very volatile and you need to make an emergency cash deposit to cover the LTV shortage on your loan. (SALT – You guys should find a secondary source of funds for situations like this!)

As to #4 I’m guessing that SALT will always keep their coin float to a minimum so as to maximize it’s lending fees from the sale of coins.


#11

#6. Collatal release! When the loan is paid off how fast WILL they get the collateral back to you? It needs to be very very very fast. Not days but hours!! Crypto prices move very fast.


#12

#7 - Your private key - How will they ensure your private key for that crypto is not hacked?? If they lose it to a hack who is responsible for your losses??


#13

Thanks man, this is an eye opener for me. So if they comply with all the laws and acts, they do have a chance of making it big just like bitconnect. Right?

Ad to #4, does it mean that they will release less coins in order to create more scarcity and increase lending fees?


#14

Possibly they can make it big. Bitconnect has been somewhat discredited. Who will come in their place?

Thinking that they have a vested interest in keeping float down (and lending fees up). You saw that the membership fee for a $100K loan is 100 SALT? Not in fiat.


#15

100k loan is 10 salt, 1million is 100 salt


#16

Oh hell, I F’d up.

Thanks HTR!!


#17

Thank you man, you’re making their loan program a lot easier to understand! Their .pdf was a different language to me


#18

Ohhhhh! We need a dedicated directory and section of threads like these, indexed by coin symbol and name! Hey @peter & @john, what say you?

This is the perfect text backup for Peter’s videos. The complete value investor’s research package. That post by Peter Rehm about the lending law compliance was sobering. Good stuff, thanks!


#19

I just did a DCTV.show video on this.

I’m seriously thinking about doing SALT for an experiment so I can learn about it…

Thoughts?


#20

I think you should do it. I’ve been curious on how SALT would work as I see it as a risk that I’m too cautious to use.