Crypto lending glossary

Interest that has built up since it was last paid. At Lombard Private, interest accrues daily on the amount you owe; if you choose not to pay it monthly, it is added to what you owe, which slowly raises your loan-to-value.

An identifier on a blockchain to which crypto-assets can be sent, derived from a public key. Each Lombard Private loan has its own deposit address, so its balance can be checked independently.

A distribution of new tokens to the holders of an existing crypto-asset. We are not obliged to support or credit assets that result from an airdrop.

The yearly cost of a loan, as a percentage of the amount borrowed. An all-in APR includes every compulsory fee, so loans can be compared like for like. Our rates are all-in APRs, from 8.9% for bitcoin and 6.9% flat for stablecoins.

A public website that shows the transactions and balances recorded on a blockchain. You can use one to check that your collateral is still at the address of your loan, without asking us.

A short-term loan that covers the gap between a payment due now and money expected later, such as the proceeds of a property sale.

Your private space at lombardprivate.com, opened with your account number and password, where you manage your loan, receive alerts and message our advisors. It is the only channel through which we contact you.

Keeping the private keys that control crypto-assets on devices that are never connected to the internet, out of reach of online attacks.

Assets pledged to secure a loan, which the lender may sell if the loan is not repaid or if their value falls too far. We accept bitcoin, ether, Solana, USDT and USDC.

The inclusion of a transaction in a block, counted again for every block added after it. More confirmations make a transaction harder to reverse; we credit bitcoin deposits after 2 confirmations.

A borrowing limit you can draw on, repay and draw on again, paying interest only on the amount you use. Our Lombard credit line has no fixed term.

The time you have to resolve a margin call: 72 hours at Lombard Private. If the partial-liquidation threshold is reached during that time, the partial liquidation takes place without waiting for it to end.

The safekeeping of assets on behalf of their owner. For crypto-assets, custody means controlling the private keys that can move them.

A failure to meet an obligation under the loan agreement, such as not repaying a loan when it falls due. A default can lead to the sale of the collateral.

When a stablecoin’s market price moves away from the value it targets, such as one US dollar. For a stablecoin-backed loan, a depeg raises the loan-to-value like any price fall.

For tax purposes, an event such as a sale or an exchange that ends your ownership of an asset and may make a gain taxable. In many countries, taking out a loan is not a disposal, but a liquidation usually is.

Taking money from a credit line. Each drawdown is paid to your bank account, and interest runs only on what you have drawn.

An alert shown in your client area when your loan-to-value reaches 65% (84% for stablecoins), before any margin call.

The token standard of the Ethereum network. USDT and USDC both exist as ERC-20 tokens: send them only on Ethereum, to an Ethereum address.

The UK’s real-time payment system, which runs around the clock. We pay sterling loans by Faster Payments.

The US Federal Reserve’s system for real-time dollar payments between banks in the United States, operating on business days.

A loan with a set duration and a rate locked for that period. Ours run for 6 or 12 months and can be repaid early without a fee.

A split in a blockchain’s rules or history that can create a new network and a new asset. We are not obliged to support assets created by a fork.

The sale of all the collateral to repay a loan in full, at 90% loan-to-value (95% for stablecoins) or after a default, with a 2% fee on the amount sold. Any surplus is returned to you.

Pledging an asset as security for a loan while remaining its owner, as with a mortgage.

The standard format for identifying a bank account in international payments, used for every euro transfer in the SEPA area.

Identity checks, such as passports, selfies and proof of address, that many financial firms carry out before serving a client. We do not ask for any of them.

The collateral price at which your loan reaches the partial-liquidation threshold. It equals the price when you borrowed × your loan-to-value ÷ 80% (92% for stablecoins).

What you owe divided by the market value of your collateral. It sets your rate and triggers alerts, margin calls and liquidations.

A loan secured by assets that you pledge, named after the merchant-bankers of medieval Lombardy. You keep the assets and their upside, and get them back when you repay.

The name central banks, notably Germany’s Bundesbank, long gave to the rate at which they lent to commercial banks against collateral.

A request to restore the cushion of a loan, issued at 70% loan-to-value (87% for stablecoins). You then have 72 hours to add collateral or repay part of the loan.

The date on which a fixed-term loan ends. At maturity, you repay the loan or roll it over for a new term.

A wallet set-up in which several independent keys must approve a transaction, so that no single person or device can move the funds.

The fee paid to a blockchain’s miners or validators to process a transaction. It depends on how busy the network is, not on the amount sent.

The sale of only the part of the collateral needed to bring the loan-to-value back to 65% (84% for stablecoins), triggered at 80% (92%). A 1% fee applies to the amount sold.

A sign-in method based on public-key cryptography, unlocked with your fingerprint, face or device PIN. It only works on the website it was created for, which makes it resistant to phishing.

The bank account you name to receive your loan. It is the only personal detail involved in a Lombard Private loan.

An attempt to steal access or funds by impersonating a trusted organisation. We never email, text or call, so any such message in our name is fraudulent.

Giving an asset as security for a debt while remaining its owner. The lender may sell it only under the conditions set in the agreement.

The secret that controls crypto-assets at an address: whoever holds it can move them. Keys are what custody protects.

A report showing that a custodian holds certain assets at a given time. On its own, it shows neither what the custodian owes nor whether the assets are pledged elsewhere.

The file you download when you open your account, which lets you restore access if you lose your password or your device. Because we do not know who you are, we cannot reset access without it.

The market price used to value your collateral and calculate your loan-to-value, shown live in your client area.

When a lender reuses collateral it has received, for example by lending it on or pledging it for its own borrowing. We never rehypothecate client collateral.

Renewing a fixed-term loan at maturity for a new term, at the rate applicable at that time.

A list of words, usually 12 or 24, that encodes the keys of a wallet. Never share it with anyone: we will never ask for it.

The area in which euro transfers work the same way across the European Union and a number of other European countries. A standard SEPA transfer usually arrives within one business day.

The instant version of the SEPA transfer: it usually arrives within seconds, at any time, every day of the year, when both banks offer it. We pay euro loans by SEPA Instant whenever the receiving bank supports it.

The Swiss payment system that settles franc payments between banks in Switzerland.

A crypto-asset designed to keep a stable value against a reference such as the US dollar, usually backed by reserve assets. USDT and USDC are dollar stablecoins.

The messaging network banks use to send international payments. A SWIFT transfer can pass through intermediary banks, which may deduct their own fees.

A collateral arrangement in which ownership of the assets passes to the lender, which only has to return equivalent assets later. It generally allows the lender to reuse them.

Adding collateral to a loan to lower its loan-to-value, for example in answer to a margin call. Top-ups are possible at any time.

The token standard of the Tron network. USDT exists as a TRC-20 token: send it only on Tron, to a Tron address.

A second proof at sign-in, such as a code from an authenticator app, in addition to your password.

A US dollar stablecoin issued by Circle. We accept it as collateral on Ethereum and Solana.

A US dollar stablecoin issued by Tether. We accept it as collateral on Ethereum and Tron.

A check, required for euro transfers in the euro area since October 2025, that compares the beneficiary name you enter with the name held for the account before the payment is sent. The UK equivalent is Confirmation of Payee.

How much, and how fast, a price moves. The more volatile an asset, the lower the loan-to-value lenders accept against it.

A lower rate for larger loans: 0.5 point off from €250,000 and 1.0 point off from €1,000,000.

A token on one blockchain that represents an asset from another, such as WBTC for bitcoin on Ethereum. Its value depends on the custodian or bridge behind it, which is why we do not accept wrapped tokens as collateral.