Question 1

What is Lantern Finance?

Accepted Answer

lantern finance is a us-based crypto company focused on offering the lowest rates for crypto-backed loans. currently, we support the following (16) crypto assets: bitcoin (btc), ethereum (eth), solana (sol), litecoin (ltc), xrp (xrp), dogecoin (doge), cardano (ada), hedera (hbar), stellar (xlm), bitcoin cash (bch), sui (sui), xdc network (xdc), chainlink (link), avalanche (avax), hyperliquid (hype), canton (cc)

Question 2

How do Lantern’s crypto-backed loans work?

Accepted Answer

with our crypto-backed loans, you can use your cryptocurrency as collateral to access cash or purchase additional crypto to add to your holdings. here are the key details of how it works.   (1)  borrowing limit: borrow up to 50% of your crypto's value (dependent on the type of cryptocurrency).  (2) loan term & rate: fixed interest rate for 12 months.  (3) collateral: once the loan is fully paid off, your collateral is returned to you. to see how much you can borrow and to estimate your costs, you can use our loan calculator  here .

Question 3

How is my crypto secured?

Accepted Answer

lantern uses  bitgo , a qualified custodian, to custody crypto on behalf of lantern users. founded in 2013, bitgo is one of the largest us-based crypto custodians, and maintains a pristine  track record of zero breaches . today, bitgo protects  over $100 billion  in crypto assets.  as a qualified custodian, bitgo is legally obligated to custody assets 1 to 1 with what has been deposited. in other words, unlike a bank, bitgo cannot lend or trade client assets.  in addition, bitgo provides  $250 million in insurance coverage  on all assets held with them.

Question 4

If I decide to pay off my loan early, are there any prepayment penalties?

Accepted Answer

no, there are no prepayment penalties with lantern, giving you maximum flexibility. you can always pay down your loan at any time, including partial principal payments.

Question 5

Can I take out multiple loans with Lantern?

Accepted Answer

yes, lantern is designed to allow you to take out as many loans as you like across multiple crypto assets or the same crypto asset. alternatively, you can add additional collateral to your existing loans and use the upsize feature to increase your existing loan.

Question 6

Can I receive my loan funds in USDC instead?

Accepted Answer

yes, when you get to the second step of the loan application, you will have the option to choose between receiving funds to your bank account or usdc on either the ethereum or solana network.

Question 7

How fast can I expect to receive my loan funds after I submit my loan application?

Accepted Answer

we try to approve and disburse loan funds to you as quickly as possible. if you’re receiving funds via usdc stablecoin, loans are funded generally within 1-2 hours, but may be slower during nights and weekends. if you’re receiving funds to your bank account via wire/ach, generally you can expect them in your bank account the same day as long as the loan application is submitted before 3 pm et. if the application is submitted after 3 pm et, the funds will hit your account the next business day.

note: wire transfers are the fastest way to receive your funds and can sometimes be processed as late as 5 pm et the same day. if your bank does not charge incoming wire fees, we recommend selecting the wire checkbox in your application to receive your funds quickly.

Question 8

Can I sell my crypto collateral through Lantern to pay off my loan?

Accepted Answer

absolutely! if you would like lantern to sell your collateral to pay off your loan, please email our support team: support@lantern.finance

Question 9

What happens if the price of my crypto goes up a lot? Do I get any benefit?

Accepted Answer

we have a specific provision in our loan agreement called “change provisions” which allows users to borrow additional funds by upsizing their existing loan when the ltv falls below a certain percentage threshold. alternatively, you can withdraw collateral when the change provisions threshold is crossed.

Question 10

What happens if the price of my crypto goes down a lot?

Accepted Answer

lantern automatically issues margin call notices by email at 65% ltv. the margin call acts as a warning notice to alert you to the risk of potentially being liquidated. you can stay ahead of margin call notices by actively monitoring the health of your loan through your lantern dashboard. if you see the ltv increasing, you can always deposit additional crypto collateral or pay down your loan at any time during the term of your loan.

Question 11

If the value of my crypto collateral drops significantly over a short period of time, will I be automatically liquidated?

Accepted Answer

no. lantern provides a 72-hour grace period to every borrower after issuing a margin call notice at 65% ltv in order to give users time to top up their collateral or pay down their loan. this provides everyone with the comfort to know that lantern will always take steps to contact you before selling your collateral.

Question 12

What is liquidation risk and how does the grace period work?

Accepted Answer

liquidation risk means your collateral could be sold if your loan-to-value (ltv) gets too high, usually because crypto prices drop.

at lantern, you’ll get a margin call when your ltv approaches risky levels (at 65%), along with a 72-hour grace period. during this time, you can add collateral or repay part of your loan to bring your ltv back down, thus helping you avoid liquidation. this grace period is designed to give you breathing room, especially during short-term market swings.

Question 13

Can Lantern guarantee I won’t be liquidated?

Accepted Answer

no, liquidation risk is an inherent part of crypto-backed loans. lantern is built to help reduce that risk with early alerts and our 72 hour grace period from margin call, but we can’t eliminate it entirely. if the market moves quickly and no action is taken during the grace period, your collateral may still be liquidated. the best way to stay safe is to actively monitor your loan and keep a healthy ltv buffer.

Question 14

Does Lantern charge any liquidation fees in case my collateral is liquidated?

Accepted Answer

none. we want to ensure we are as maximally aligned to users’ success as possible, which is why we never charge a liquidation fee even if we have to sell crypto.

Question 15

What happens if I can’t pay back my loan after 12 months?

Accepted Answer

after 12 months, you will have the option to renew your loan for an additional 12 months. while we can’t guarantee future rates, we expect loan terms to be in the same ballpark as they are now. as part of a renewal, you will need to ensure your ltv is below the maximum allowed on the platform, which may require you to deposit additional crypto. in addition, lantern charges a renewal fee of 2% on the loan amount to renew your loan.

Question 16

When is interest due and how do I pay my interest?

Accepted Answer

interest is due by the 5th business day of the following month. with lantern, you can connect your bank account via plaid to enable “autopay” which allows you to automatically make your interest payment as soon as the invoice is created. you can also pay using usdc on the ethereum or solana networks.

Question 17

Will applying for a loan with Lantern affect my credit score?

Accepted Answer

no. applying for a loan with lantern will never impact your credit score as we don’t pull a credit background report.

Question 18

I am not a resident of the US. Can I use Lantern?

Accepted Answer

lantern is currently limited to us-based individuals and institutions. if you are an international client who would like to use our crypto-backed lending services, please get in touch with us at  support@lantern.finance  and we will try our best to support you.

at this time, lantern does not support clients in canada, the uk or europe.

Question 19

Does Lantern offer a referral program?

Accepted Answer

yes! after taking out your first loan, you will be able to see a “referrals” tab in your lantern dashboard. you can share the unique link with your friends and family and receive 0.5% of the loan amount they take out. in addition, they will also receive 0.5% off their first loan. lantern is also able to customize these terms for you. if you would like to discuss customized terms, please reach out to support@lantern.finance.

Question 20

I have more questions, how can I get in touch with your team?

Accepted Answer

if you have more questions or need assistance, you can always call or text our customer support number: 415-365-0100. we may have limited coverage on weekends but we try our best to get back to you as soon as possible.. alternatively, you can send an email to our support team at support@lantern.finance.  if you prefer a video call, you can schedule a call using our  calendly .

Question 21

What can I do with Lantern Trading & Custody?

Accepted Answer

you can buy, sell, hold, and manage supported crypto assets directly inside lantern. you can also deposit and hold usd in your lantern trading balance through your connected bank account, use usd toward loan payments, move funds between your trading wallet and loan account, and borrow loan proceeds directly into your trading balance. please note that lantern is not a bank account, and funds held with lantern are not fdic insured.

Question 22

Which assets are supported?

Accepted Answer

at launch, lantern supports trading for btc, eth, xrp, sol, ltc, doge, link, and xlm.  we expect to add more supported assets soon.

Question 23

What are the trading fees?

Accepted Answer

lantern charges a 1% fee on buys and sells.

Question 24

What are the current trading limits?

Accepted Answer

- daily buy limit: $25,000 - monthly buy limit: $500,000 - daily sell limit: $100,000  we expect to increase these limits over time.

Question 25

Who can use Lantern Trading & Custody?

Accepted Answer

trading and custody are available to eligible individual lantern users. trading and custody are not currently available to new york residents, vermont residents, or business users. we expect to support new york residents and business users in the coming months, with vermont expected to follow later.

Question 26

Do existing Lantern users need to complete KYC again?

Accepted Answer

no. existing lantern users will automatically get access to trading. new users will complete lantern’s standard kyc process and agree to the additional trading and custody terms.

Question 27

Who powers Lantern Trading & Custody?

Accepted Answer

lantern’s trading and custody product is powered by coinme, with custody infrastructure provided by fireblocks.

Question 28

What is Fireblocks?

Accepted Answer

fireblocks is an institutional digital asset custody and infrastructure provider used by many crypto and financial services companies to help securely store and transfer digital assets. for lantern trading & custody, fireblocks provides custody infrastructure for trading assets. this is separate from lantern loan collateral and loan account assets, which continue to be held with bitgo. you can learn more about fireblocks  here .

Question 29

Are my loan assets still held with BitGo?

Accepted Answer

yes. your lantern loan collateral and loan account assets will continue to be held with bitgo. trading and custody assets are separate from your loan collateral custody.

Question 30

What insurance coverage applies to Fireblocks custody infrastructure?

Accepted Answer

fireblocks maintains institutional insurance policies, including digital asset crime coverage and cyber / professional liability coverage, subject to policy terms, limits, and exclusions.  fireblocks maintains digital asset crime insurance covering digital assets stolen under the definition of the policy following an external cyber breach of fireblocks software or malicious / intentional misbehavior or fraud by employees. the aggregate policy limit is $30m. fireblocks also maintains errors and omissions / professional liability insurance and cyber / privacy liability insurance covering certain liability, cyber, privacy, and computer-related events as defined in the applicable policies. the combined aggregate policy limit for these policies is $12.5. coverage is subject to the terms, conditions, exclusions, and limits of the applicable policies.

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