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 diversified investment portfolios — 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 created by experienced fintech professionals who’ve scaled major platforms in lending and servicing. The founding team identified a market gap for credit products intentionally designed to complement long-term investing — and sought to make these approaches more accessible through technology and automation.

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?

I-LOC (Investment Line of Credit) is an unsecured credit line designed to automatically allocate each drawdown into a diversified investment portfolio, typically composed of index ETFs. This product links borrowing with structured, long-term investing, offering an alternative use of credit aligned with financial planning objectives.

How does it work?

1. You get approved for a credit line.

2. You schedule recurring drawdowns (e.g., $200/month).

3. Each draw is invested automatically into a pre-selected ETF portfolio.

4. Interest is only charged on the borrowed amount, not the total approved limit.

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

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 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 and adheres to industry-standard KYC, AML, and compliance procedures.

What if markets drop?

I-LOC uses a dollar-cost averaging strategy, which spreads investment contributions over time and may help smooth exposure to market volatility. The product does not involve margin calls, mark-to-market triggers, or forced liquidation — allowing borrowers to maintain their investment positions even during downturns.

However, investment value may decline during such periods, and there are no guarantees of recovery. I-LOC is structured for long-term investing and is not designed for short-term speculation. ^[2][4][5]

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.

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.