Loan and pledge agreement

Last updated 9 October 2026

Status of this summary

This page summarises, for information, the loan and pledge agreement (the “agreement”) that governs each loan made by Lombard Private. It does not replace the agreement. The figures quoted are those of our current offer; the figures that apply to your loan are those stated in the agreement you accept in your client area.

Key figures

The parties

The agreement is made between you, the holder of the account from which the loan is requested, and Lombard Private, the lender. If you borrow on behalf of a company or another legal entity, you confirm that you are authorised to bind it, and the entity is the borrower.

The facility

Each loan takes one of two forms, which you choose when you request it:

• Lombard credit line. An open-ended facility. You may draw any amount up to your available limit, in one or several payouts, repay and draw again for as long as the line is open. Your available limit is the value of your collateral multiplied by the loan-to-value you have chosen, less what you already owe.
• Fixed-term loan. A single payout for a term of 6 or 12 months, at a rate fixed for the whole term. At maturity, you repay the loan or, if we offer it, roll it over for a new term at the rate then in force.

Loans range from €1,000 to €2,000,000, or the equivalent in US dollars, pounds sterling or Swiss francs. Larger amounts are subject to terms agreed individually with our private desk. The loan is denominated in the currency you choose, which is the currency in which you owe it.

Payment of the loan

Once your collateral has been credited to the address created for your loan, we pay the loan by bank transfer to the account you nominate in your client area: EUR by SEPA Instant or SEPA, USD by SWIFT or Fedwire, GBP by Faster Payments, CHF by SIC or SWIFT. You are responsible for the accuracy of the account details, including the name of the beneficiary as held by the receiving bank. If a transfer is returned, we credit the amount back to your loan and pay it again once you have provided correct details.

Interest

Interest accrues daily on the amount you owe, at the annual rate stated in the agreement, on the basis of the actual number of days elapsed and a 365-day year:

daily interest = amount owed × annual rate ÷ 365

You choose to pay interest monthly, on the dates shown in your client area, or to let it accrue and pay it when you repay. Accrued interest is added to the amount you owe, which raises your loan-to-value, but it does not itself bear interest. Amount-based reductions apply from €250,000 (−0.5 point) and from €1,000,000 (−1.0 point).

The rate of a fixed-term loan does not change during its term. The rate of a credit line may be changed for the future with prior notice in your client area; you may then repay the line, without any fee, before the change takes effect.

The pledge of your collateral

To secure everything you owe under the agreement, you pledge your collateral to us. You transfer it to a blockchain address created for your loan, which we control as pledgee and custodian. The collateral is held in multi-signature cold storage at that address, where you can verify it on a public block explorer at any time.

We hold the collateral as security only. We have no right to use it: we will not lend, stake, pledge, rehypothecate or otherwise use it, and we will not sell it except in the cases of liquidation described below. It is not mixed with our own assets.

You may add collateral at any time; it becomes subject to the pledge as soon as it is credited. You may also ask to withdraw surplus collateral, provided your loan-to-value after the withdrawal does not exceed the loan-to-value you chose for the loan.

Loan-to-value and alerts

Your loan-to-value is the amount you owe, including accrued interest and fees, divided by the value of your collateral. We calculate it continuously, using the reference price of your collateral and the exchange rate between the US dollar and your loan currency shown in your client area.

When your loan-to-value reaches 65% (84% for USDT and USDC), an early warning is displayed in your client area and, if you have enabled them, sent as a browser notification. Alerts are a courtesy: it is your responsibility to monitor your loan-to-value.

Margin calls

When your loan-to-value reaches 70% (87% for USDT and USDC), we issue a margin call in your client area. You then have 72 hours to bring your loan-to-value back below that threshold, by adding collateral or repaying part of the loan. The margin call ends as soon as you have done so.

If, at the end of the cure period, your loan-to-value is still at or above the margin-call threshold, we may sell the part of your collateral needed to bring it back to 65% (84% for USDT and USDC). The cure period does not protect you against further falls: if the partial-liquidation threshold is reached during the period, the partial liquidation takes place without waiting for the period to end.

Partial and full liquidation

If your loan-to-value reaches 80% (92% for USDT and USDC), we sell, without further notice, only the part of your collateral needed to bring it back to 65% (84%), and apply the proceeds to the amount you owe. A fee of 1% of the amount sold applies.

If your loan-to-value reaches 90% (95% for USDT and USDC), or if an event of default occurs, we may sell all of your collateral to repay the loan in full, with a fee of 2% of the amount sold. Sales are made on the market at the prices available at the time. Any amount remaining after the loan, accrued interest and fees have been repaid is returned to you.

Events of default

Each of the following is an event of default under the agreement:

• failure to pay an amount when due, if it remains unpaid at the end of the grace period stated in the agreement;
• your loan-to-value reaching the full-liquidation threshold;
• a declaration you made, including about your eligibility, proving to be false;
• you becoming subject to sanctions, or the loan or the collateral being connected with unlawful activity;
• for a company or other legal entity, its insolvency, liquidation or a similar proceeding;
• a serious breach of the agreement that is not remedied within the period we give you in your client area.

Following an event of default, we may declare everything you owe immediately due and enforce the pledge by selling the collateral, as described above. Where sanctions law requires it, we may instead have to freeze the collateral and report to the competent authorities.

Repayment

You may repay at any time, in full or in part, without any fee, including before the end of a fixed term. You repay by bank transfer in the loan currency, using the reference shown in your client area, or in USDT or USDC, converted at the reference rate shown in your client area when the repayment is credited. Interest stops accruing on the amount repaid from the day the repayment is credited. Partial repayments are applied first to accrued interest and fees, then to the principal.

Release of the collateral

When everything you owe has been repaid, the pledge ends and we return your collateral to the address you designate in your client area, typically within the hour. The blockchain network fee for the return is charged at cost and shown before you confirm. Collateral is returned in the asset pledged, on the network from which you deposited it; any surplus collateral you withdraw during the loan is returned in the same way.

Fees

The interest rate is an all-in rate: no other fee is charged to open, manage or repay a loan. See the fee schedule.

Forks and airdrops

If a blockchain on which your collateral is held splits into two or more chains (a fork), or if new tokens are distributed to holders of your collateral (an airdrop), we are not obliged to support, claim or credit any new asset. Where possible, we tell you in advance in your client area how we intend to handle an announced fork.

Notices

All notices under the agreement, including alerts, margin calls and notices of liquidation, are given in your client area and are treated as received when published there. We do not send notices by email, post or telephone. Browser notifications, if you enable them, are a convenience and may not reach you.

Assignment

You may not transfer your rights or obligations under the agreement without our prior consent. We may transfer the agreement, or our rights under it, to another entity, provided that your rights are not reduced as a result; we will tell you in your client area.

Governing law and disputes

The agreement states the law that governs it and the courts that have jurisdiction over any dispute, without prejudice to any mandatory rules that apply to you. If you have a complaint, please use our complaints procedure first.