Legal
Risk disclosure
Borrowing against crypto-assets can cost you part or all of your collateral. This document explains, in plain words, the risks you take and how our terms deal with them. Please read it before you borrow.
Last updated 9 October 2026
The essentials
Only borrow what you are able to repay, and keep a margin of safety. The maximum loan-to-value is a ceiling, not a recommendation. If you are unsure whether a loan is right for you, seek independent advice.
About this disclosure
This disclosure forms part of the information we give you before you take out a loan with Lombard Private. It does not list every possible risk, and it does not replace the loan and pledge agreement or the terms of use, which prevail in the event of any difference. The figures quoted below are those of our current offer; the figures that apply to your loan are shown in your client area before you commit.
Price volatility
Crypto-assets are highly volatile. Their prices can fall by a large proportion in a matter of hours, including at night, at weekends and on public holidays, because crypto markets never close. Past price behaviour does not predict future behaviour. A fall in the price of your collateral increases your loan-to-value ratio (the amount you owe divided by the value of your collateral), which is the measure that triggers the events described below.
Margin calls
For bitcoin, ether and Solana, an early warning is displayed in your client area when your loan-to-value reaches 65%. At 70%, a margin call is issued: you then have 72 hours to bring your loan-to-value back below the margin-call threshold, by adding collateral or repaying part of the loan. For USDT and USDC, the corresponding thresholds are 84% and 87%.
Because we do not hold your email address or phone number, alerts are delivered only in your client area and, if you enable them, as browser notifications. It is your responsibility to check your client area regularly, particularly when markets are moving. A margin call that you have not seen is still a margin call.
The cure period does not protect you against further falls: if the loan-to-value reaches the liquidation threshold during the cure period, the liquidation described below takes place without waiting for the period to end.
Liquidation
If your loan-to-value reaches 80% (92% for stablecoins), we sell part of your collateral, without further notice, to bring it back to 65% (84% for stablecoins). A fee of 1% of the amount sold applies. If your loan-to-value reaches 90% (95% for stablecoins), or if the loan is in default, the whole of the collateral may be sold to repay the loan in full, with a fee of 2% of the amount sold. Any balance remaining after the loan, accrued interest and fees have been repaid is returned to you.
A liquidation is final. The collateral sold will not be bought back for you, and you will not benefit from any later recovery in its price.
Execution of sales
Collateral is sold on the market at the prices available at the time of the sale. In fast or illiquid markets, the price obtained may be lower than the reference price shown in your client area, and the loan-to-value after a partial liquidation may therefore differ from the target. Market disruptions, trading halts on exchanges or network congestion may delay a sale; a delay may result in a lower price.
Stablecoins
USDT and USDC aim to keep a value of one US dollar, but there is no guarantee that they will. A stablecoin can lose its peg temporarily or permanently, for example because of doubts about its reserves, a run on redemptions or regulatory action against its issuer. Stablecoin issuers can also freeze tokens held at specific addresses; tokens frozen by their issuer may be impossible to sell or return. A loss of peg raises your loan-to-value and can lead to a margin call or a liquidation like any other price fall.
Currency risk
Your collateral is valued in US dollars on the market, while your loan may be in euros, pounds sterling or Swiss francs. A change in the exchange rate between the dollar and your loan currency therefore changes your loan-to-value, even if the price of your collateral in dollars does not move. This applies to every asset, and it is the main source of risk for a loan in euros, pounds or francs backed by dollar stablecoins.
Custody and operations
Your collateral is held at an address dedicated to your loan, in multi-signature cold storage, and is not lent, staked, pledged or rehypothecated. These measures reduce but do not eliminate risk: custody involves keys, people, software and procedures, any of which can fail or be attacked. Operational incidents, maintenance or outages may temporarily prevent you from accessing your client area, topping up, repaying or receiving your collateral back.
Our status and your protection
Lombard Private is not a bank. Your loan and your collateral are not covered by any deposit-guarantee scheme or investor-compensation scheme. If we became insolvent, recovering your collateral could take time and could involve legal proceedings, even though it is held at a dedicated address and is not mixed with our own assets.
Blockchain networks
Deposits and returns of collateral depend on public blockchain networks that we do not control. Networks can be congested, which delays confirmations and raises transfer fees; they can also undergo changes, splits (forks) or failures. A transfer sent to the wrong address or on the wrong network may be lost permanently: always use the address and network shown in your client area for your loan. We are not obliged to support new assets resulting from a fork or an airdrop.
Interest and rate changes
Interest accrues daily on the amount you owe. If you choose to let interest accrue rather than pay it monthly, the amount you owe grows over time and so does your loan-to-value, even if prices do not move. The rate of an open-ended credit line may be changed for the future with prior notice in your client area, in which case you may repay without a fee before the change takes effect; the rate of a fixed-term loan does not change during its term.
Bank payments
We pay loans by bank transfer to the account you nominate. Payment times depend on the payment system and on the receiving bank, and can be longer than our typical times, for example outside business hours for systems that do not operate around the clock. A bank may delay, query or return a transfer, including to ask you about its origin. We are not responsible for the decisions of your bank. Make sure the account details you enter are correct: a transfer to a wrong account may not be recoverable.
Access to your account
Your account is identified only by its account number, protected by your password and, if you add them, a passkey or an authenticator app. Because we do not know who you are, we cannot restore your access by email, phone or identity check. If you lose your account number, your password and your recovery kit, you may lose access to your client area, and with it the ability to manage your loan and to designate where your collateral is returned. Keep your recovery kit offline, in a safe place, and beware of phishing: we will never contact you outside your client area.
Tax
The tax treatment of loans secured by crypto-assets depends on your country of residence and your situation. Taking out a loan is generally not treated as a sale, but a liquidation, a full or partial sale of collateral, and in some countries other events, may be taxable. We do not provide tax advice. You are responsible for your tax obligations; consider consulting a tax professional.
Legal and regulatory change
The legal and regulatory framework applying to crypto-assets and to lending is changing in many countries. New rules may affect our ability to offer our services, the terms on which we can offer them, or the countries in which they are available, and may require changes to your loan. Our services are not available in the restricted jurisdictions listed on this website. Nothing on this website is investment, legal or tax advice.