How does interest work on my credit line?

You only pay interest on the funds you actually withdraw. If your credit line is open but unused, you pay 0% APR on unused credit. Active rates are dynamic and depend on your Loan-to-Value (LTV) ratio.

Are there fixed monthly payments?

No. Repay any amount, anytime. Your borrowing costs adjust as your balance and LTV change.

Can my interest rate change over time?

Yes. Rates are floating and risk-based. Higher LTV generally means higher rates; lower LTV generally means lower rates.

Can I change my collateral after drawing funds?

Yes. You can add, remove, or swap collateral assets in your basket, including after drawing funds, subject to maintaining healthy LTV.

How do I avoid a margin call?

Monitor your LTV and keep a buffer. If collateral value drops and LTV rises, add collateral or repay part of the balance. Clapp provides alerts as LTV approaches critical levels.

Instant Crypto Credit Lines: Borrow Stablecoins Instantly

Q: Is borrowing against crypto a taxable event?

Borrowing against crypto is generally not considered a sale, so it may be a tax-efficient way to access liquidity without triggering capital gains. Consult a tax professional for your jurisdiction.

Borrow at 0% Interest

Zero cost if your Loan-to-Value (LTV) ratio stays below 20%. The most cost-effective way to access liquidity.

Always on Hand

Our revolving credit line is available 24/7. Use it as a reliable source of capital whenever opportunities arise.

Tax-Efficient Borrowing

Get started with a single KYC in minutes! Clapp provides immediate access to all crypto markets.

Flexible Repayment Schedule

No fixed monthly payments. Repay any amount, anytime. Unlike a traditional term loan, you control the schedule.

Easily Swap Collateral

Add, remove, or replace assets in your collateral basket anytime. Lock in gains without refinancing your entire loan.

React to Market Opportunities

Use your crypto credit line to buy the dip or diversify your portfolio without liquidating your long-term positions.

Instant Approval & Funding

Draw from your pre-approved credit line immediately. No credit checks, no paperwork, and no waiting periods.

Pay Less as You Repay

Floating rates drop automatically as you reduce your balance. Your borrowing costs adjust instantly with your usage.

Margin Call Protection

Smart alerts notify you if your LTV nears critical levels, giving you time to top up collateral and sleep easy.

*All rates, terms, and conditions are subject to change. Additional terms and eligibility requirements may apply.

1. Activate & Deposit

Tap to activate your line and select assets (BTC, ETH, SOL) for your collateral basket.

2. Instant Draw

Withdraw USDT, USDC, or EUR up to your limit directly to your Clapp Wallet or your bank account via SEPA with personal IBAN.

3. Repay Flexibly

Repay on your own schedule. Add or remove collateral anytime to manage your LTV ratio.

Access to Funds

Always on. A permanent credit line you can tap anytime, 24/7.

One-time loan disbursement. Must reapply for new funds.

Interest When Idle

0% when idle. No fees or interest until you draw funds.

Interest starts immediately on the full loan amount.

How Interest Is Charged

No fixed payments or deadlines. Pay interest only on the amount you use.

Pay interest on the entire loan, even if unused with penalties for missing dates.

Interest Rate Structure

Floating, risk-based rate tied to your LTV. Rate drops as LTV improves.

Fixed or semi-fixed rate, regardless of repayment progress.

Repayment Flexibility

No fixed monthly payments. Repay any amount, anytime.

Fixed repayment schedule with required monthly payments.

Cost Control

Pay less as you pay back — interest automatically decreases.

Interest costs remain largely unchanged over time.

Collateral Management

Easily add, remove, or swap collateral assets — even after drawing funds.

Collateral is locked until the loan is repaid or refinanced.

Market Flexibility

React to market moves quickly without selling your crypto.

Limited flexibility once the loan is active.

Refinancing Required

None. Adjust collateral and usage dynamically.

Often required to change terms or collateral.

Access 24/7 support

Need help? Clapp's expert team is ready to assist anytime, ensuring your experience is smooth and hassle-free.

Frequently Asked Questions

Unlike a term loan, you only pay interest on the funds you actually withdraw. If your line is open but unused, you pay 0% APR. Active interest rates are dynamic based on your Loan-to-Value (LTV) ratio—lower risk means lower rates.

Generally, borrowing against your assets is not considered a sale, meaning it is typically a tax-efficient way to access liquidity without triggering capital gains taxes. We recommend consulting a tax professional for your specific jurisdiction.

No. Clapp gives you full repayment flexibility. Pay back any amount, anytime, and your interest automatically adjusts as you repay.

Yes. Our rates are risk-based and floating. The more you borrow relative to your collateral (higher LTV), the higher the interest rate; the less you borrow (lower LTV), the lower your rate.

Yes! With Clapp, you can easily add, remove, or swap assets in your collateral basket — even after drawing funds. Lock in gains on one asset and use another to back your credit line, all without complicated refinancing.

A margin call occurs if your collateral value drops significantly. Clapp provides automatic alerts to notify you before this happens, allowing you to add collateral or repay part of the balance to stabilize your health factor.

LTV (loan-to-value) measures how much you've borrowed compared to the value of your collateral. A lower LTV means a bigger "safety cushion," keeping your credit line secure. For example, if you pledge $10,000 in collateral and borrow $2,000, your LTV is only 20% — a very safe level.

We'll notify you if your LTV rises, giving you time to adjust and sleep easy, without surprises.

Instant Crypto Credit Line: Borrow on Your Terms, From 0% APR