FAQs

General Questions

What is Binaxity?

Binaxity is a fintech company that offers credit products designed to align borrowing with long-term investing goals. Unlike traditional lenders that treat credit solely as a short-term solution, we offer tools intended to support structured financial planning over time.

What makes Binaxity different?

Our products are structured to automatically allocate borrowed funds into assets (e.g. BTC, Gold, Nasdaq index) - linking credit with consistent, disciplined investing. By doing so, we provide borrowers with a new way to manage liquidity while pursuing long-term financial objectives.

Who founded Binaxity?

Binaxity was founded by fintech executives with experience scaling lending platforms. They saw a gap: credit products built for long-term investing, not just short-term debt.

Who are Binaxity products designed for?

Binaxity’s solutions may appeal to individuals interested in structured investing through credit, including early-stage investors, self-employed professionals, and those who prefer automated contributions over time. Our approach supports long-term investment discipline - without requiring upfront capital.

Investment Line of Credit (I-LOC)

What is I-LOC?

A Binaxity I-LOC is a credit line that lets you draw funds when you choose, contribute your own capital, and have Binaxity match it 1:1 to purchase Bitcoin. Each draw becomes a separate interest-only loan, and your combined funds are used to accumulate assets (e.g. BTC, Gold, and Nasdaq index) securely in custody.

How does it work?

• Get approved for a credit line.

• Choose a draw amount anytime.

• Make your co-investment in USDC/USDT.

• Binaxity matches your amount 1:1 and creates a loan for the matching portion.

• Total funds are used to purchase underlying asset usually within minutes.

• You make monthly interest-only payments on the borrowed amount.

• You may withdraw asset anytime; proceeds first repay outstanding loan balance and interest.

Your investment performance will vary based on market conditions, and all outcomes are subject to risk. ^[2][4]

Do I need existing assets like BTC and Gold to open a I-LOC line of credit?

No. Binaxity’s I-LOC is not designed around borrowing against assets you already own.

Instead, you contribute stablecoin funding such as USDC or USDT, Binaxity matches your contribution with credit, and the combined amount is used to acquire assets (BTC, Gold, Nasdaq index) for your vault.

What is the minimum investment to get started?

The minimum investment to get started with Binaxity’s I-LOC is $50.

You can begin with a smaller drawdown and build your position over time, rather than needing a large upfront investment.

Can I withdraw cash instead of investing?

No. I-LOC is designed specifically for investing. Funds are not available for discretionary spending or cash withdrawals. This structure is intended to help users stay aligned with long-term investment goals by preventing use for short-term consumption.

How is interest calculated?

You pay interest monthly on the portion of your credit line that you've drawn, not on the full approved amount. Interest is calculated using a simple (non-compounding) model, which means your interest cost remains steady unless you draw additional funds. This structure helps borrowers forecast their monthly obligations more clearly.

Is it secure?

Client assets are held by a licensed custodian in a bankruptcy-remote Special Purpose Vehicle (SPV), a structure intended to isolate them from company liabilities in the event of insolvency. While this arrangement offers legal and operational protections, it does not eliminate all risks. Binaxity also partners with regulated broker & dealers to acquire assets and adheres to industry-standard KYC, AML, and compliance procedures.

What is co-investment?

Co-investment means you put in $1, and Binaxity lends $1, giving you double the asset buying power. Example:

• You contribute $1,000

• Binaxity lends $1,000

• $2,000 in assets (e.g. BTC, Gold, Nasdaq index) is purchased for your vault

This ensures both sides share aligned incentives and promotes disciplined, responsible accumulation.

How do I terminate the loan?

You can repay your balance at any time - there are no prepayment penalties. Once your loan is fully repaid, you may redeem your assets from custody and receive payout in stable coins like USDC/USDT in your self-custody wallet. If you’d like to exit earlier, you can request a redemption, and proceeds will first be applied to your outstanding balance. The redemption process will be handled by a dedicated Binaxity support agent and might take up to 2 business days to complete.

Redeeming assets may trigger a taxable event. Consult a qualified tax advisor to understand how this may apply to your situation.^[5]

What happens if the underlying asset price drops after I use an I-LOC?

If the underlying asset price drops, the value of your I-LOC position may decline, and your applicable interest rate may increase. I-LOC interest rates are daily variable and may change based on factors such as the underlying asset type, borrower credit risk, market liquidity, asset volatility, and the price gap between the asset’s current price and its reference price.

However, a price drop does not automatically trigger a margin call or forced sale. As long as your account remains in good standing and required interest payments are made, Binaxity does not automatically liquidate your position solely because of market volatility.

You remain responsible for interest payments, and missed payments may result in restrictions on additional drawdowns or other actions under the applicable I-LOC agreement. ^[2][4][5]

What gold asset am I acquiring with Gold I-LOC?

The Gold I-LOC is designed to provide contractual exposure to gold through Binaxity’s structured lending framework. It is important to note that this product does not involve the direct acquisition or titled ownership of allocated physical bullion.

Can I redeem and withdraw physical gold?

No. The Gold I-LOC is not structured as a physical delivery vehicle. Upon redemption, positions are typically settled in stablecoins (such as USDC/USDT) or cash equivalents. These proceeds are issued after the full repayment of the outstanding loan principal, any accrued interest, and relevant execution fees.

What Nasdaq Index am I acquiring with Nasdaq I-LOC?

The Nasdaq I-LOC offers contractual exposure linked to the Nasdaq-100. This is expected to be represented by the QQQ ETF or a similar Nasdaq-100 tracking instrument selected by Binaxity to maintain alignment with the index’s performance.

Can I redeem and withdraw QQQ ETF shares?

No. This product does not function as a traditional brokerage account and does not facilitate the direct transfer of ETF shares. Redemptions are expected to be settled in USDC/USDT or cash equivalents following the satisfaction of all outstanding loan obligations, interest, and applicable costs.

Is this a brand-new idea?

Not entirely. Investment-linked lending strategies have been used in private banking and wealth management for decades. Binaxity's I-LOC product adapts similar principles into a structured, automated format - with the goal of making them more broadly accessible through technology and standardized pricing.

Is it like margin trading?

No - I-LOC is structured differently from margin accounts. It does not involve mark-to-market monitoring, margin calls, or forced liquidation. Unlike margin trading, it also doesn’t require initial capital deposits. These differences may reduce certain risks commonly associated with leveraged investing, though all investment products carry inherent risk.

Are there any fees on the Binaxity I-LOC?

Yes. Binaxity may charge:

Activation fee: charged when you make a drawdown Interest: charged on the outstanding loan principal Execution spread: Binaxity may earn revenue through BTC execution and order routing

There is no redemption fee and no fee for unused credit. You only pay when you draw from your approved credit line.

Is there a credit check for a BTC line of credit?

Binaxity reviews your application before approving a credit line. This may include identity verification, financial information, risk checks, and other eligibility criteria.

The exact review process may vary depending on your location, product availability, and applicable compliance requirements.

Who is eligible for Binaxity’s bitcoin line of credit?

Eligibility depends on your jurisdiction, identity verification status, financial profile, and Binaxity’s onboarding requirements.

Binaxity’s I-LOC is designed for financially motivated users who want to build long-term exposure, including users who may not have enough upfront capital to acquire their desired position all at once.

Who benefits most from I-LOC?

I-LOC may appeal to individuals who prefer to invest gradually over time rather than making lump-sum investments, and who value the discipline of automated investing. It can also be considered by those with a long-term investing horizon and interest in portfolio growth through consistent contributions. As with any financial product, personal goals, risk tolerance, and financial circumstances should be evaluated independently.

Jurisdiction Eligibility & Availability

Restricted Jurisdictions

Due to regulatory, legal, or compliance considerations, Binaxity’s products and services are not available to individuals who reside in certain countries or territories (each, a “Restricted Jurisdiction”).

At this time, Restricted Jurisdictions include, but are not limited to:

Afghanistan, Albania, Armenia, Azerbaijan, Bangladesh, Belarus, Benin, Botswana, Burkina Faso, Burundi, Cayman Islands, Canada, Cambodia, Cameroon, Cape Verde, Central African Republic, Democratic Republic of the Congo, Cuba, Eswatini, Eritrea, Ethiopia, Ghana, Guinea, Guinea-Bissau, Haiti, Iran, Iraq, Jamaica, Jordan, Kazakhstan, Kyrgyzstan, Lebanon, Liberia, Libya, Madagascar, Mali, Mauritania, Mauritius, Mongolia, Morocco, Mozambique, Myanmar, Nepal, Nicaragua, Niger, North Korea, Pakistan, Palestinian Territories, People’s Republic of China, Republic of the Congo, Réunion, Russia, Rwanda, Senegal, Sierra Leone, Somalia, Sri Lanka, Solomon Islands, South Sudan, Sudan, Syria, Tajikistan, Tanzania, Timor-Leste, Tonga, Trinidad and Tobago, Turkmenistan, Tunisia, Uganda, Ukraine, United States of America, Uzbekistan, Vanuatu, Western Sahara, Yemen, Zambia, and Zimbabwe.

This list may be updated from time to time based on changes in applicable laws, regulations, or Binaxity’s internal risk assessments.

Platform Access Controls

Binaxity may implement technical, geographic, or other controls to limit or block access to its website, mobile applications, or services from Restricted Jurisdictions. Binaxity retains sole discretion to determine which jurisdictions are subject to such access restrictions and how those restrictions are enforced.

Existing Clients

In limited circumstances, users who became Binaxity clients prior to a jurisdiction being designated as restricted may retain access, subject to additional conditions and ongoing compliance reviews. Availability in such cases is not guaranteed and may vary by jurisdiction.

Traveling to a Restricted Jurisdiction

If you are an existing Binaxity client who does not reside in a Restricted Jurisdiction, please note that temporary travel to a Restricted Jurisdiction may result in a loss of access to the Binaxity Platform for the duration of your stay, where access controls are in place.

Product-Specific Limitations

Separate from the jurisdiction list above, Binaxity may restrict or limit access to specific products or features in certain countries or regions due to regulatory requirements, licensing considerations, or operational constraints - even if the jurisdiction is not otherwise listed as restricted.