CRYPTOCURRENCY LENDING AGREEMENT

Agreement Date: [DATE]

Agreement Number: [LOAN-XXXX-XXXX]

PARTIES

LENDER:
- Legal Name: [LENDER NAME] (the "Lender")
- Entity Type: ☐ Individual ☐ Corporation ☐ LLC ☐ Fund ☐ Other: [SPECIFY]
- Address: [ADDRESS]
- Email: [EMAIL]
- Wallet Address (for repayment): [ADDRESS]

BORROWER:
- Legal Name: [BORROWER NAME] (the "Borrower")
- Entity Type: ☐ Individual ☐ Corporation ☐ LLC ☐ Other: [SPECIFY]
- Address: [ADDRESS]
- Email: [EMAIL]
- Wallet Address (for receipt): [ADDRESS]

RECITALS

WHEREAS, Lender is willing to lend certain cryptocurrency or digital assets to Borrower;

WHEREAS, Borrower desires to borrow such assets and agrees to provide collateral and repay the loan according to the terms herein;

NOW, THEREFORE, in consideration of the mutual covenants herein, the parties agree as follows:

ARTICLE 1: LOAN TERMS

1.1 Loan Amount and Asset

1.2 Interest Rate

Interest Rate: [RATE]% per [ANNUM/MONTH/DAY]

Interest Type:
☐ Fixed Rate
☐ Variable Rate (based on [INDEX/BENCHMARK])
☐ Zero Interest (collateral only)

Interest Calculation:
☐ Simple Interest
☐ Compound Interest (compounded [DAILY/MONTHLY/ANNUALLY])

Interest Payment:
☐ Paid at maturity with principal
☐ Paid [MONTHLY/QUARTERLY] in [LOAN ASSET/STABLECOIN/OTHER]
☐ Capitalized (added to principal)

1.3 Disbursement

Lender shall disburse the Loan Amount to Borrower's designated wallet address within [NUMBER] business days of:

☐ Execution of this Agreement
☐ Receipt of Collateral
☐ Satisfaction of all conditions precedent

Borrower's Receiving Address: [WALLET ADDRESS]

1.4 Repayment

1.4.1 Principal Repayment:

☐ Bullet Repayment: Full principal due at Maturity Date
☐ Amortizing: Equal payments of [AMOUNT] per [PERIOD]
☐ Interest-Only: Interest payments during term; principal at maturity
☐ Custom Schedule: Per Schedule A

1.4.2 Repayment Currency:

☐ Same asset as borrowed ([SYMBOL])
☐ USD stablecoin (USDC/USDT/DAI) at market rate
☐ Fiat currency (USD) via [METHOD]
☐ Other: [SPECIFY]

1.4.3 Repayment Address:

Lender's Wallet Address: [ADDRESS]

1.5 Prepayment

☐ Borrower may prepay without penalty
☐ Prepayment penalty of [AMOUNT/PERCENTAGE] applies for prepayment before [DATE/PERIOD]
☐ Prepayment not permitted before [DATE]

ARTICLE 2: COLLATERAL

2.1 Collateral Requirement

Borrower shall provide the following collateral to secure the Loan:

Initial Loan-to-Value (LTV) Ratio: [PERCENTAGE]%

Maximum Permitted LTV: [PERCENTAGE]%

2.2 Collateral Deposit

2.2.1 Borrower shall deposit Collateral to:

☐ Smart Contract Escrow: [CONTRACT ADDRESS]
☐ Lender's Custodial Wallet: [ADDRESS]
☐ Third-Party Custodian: [CUSTODIAN NAME]
☐ Multi-Signature Wallet: [X] of [Y] required; addresses: [LIST]

2.2.2 Collateral must be deposited:
☐ Before loan disbursement
☐ Simultaneously with loan disbursement
☐ Within [NUMBER] hours of loan disbursement

2.2.3 Confirmation of deposit requires [NUMBER] blockchain confirmations.

2.3 Collateral Valuation

2.3.1 Collateral shall be valued using:
☐ [EXCHANGE/ORACLE] spot price
☐ Average of [EXCHANGES]
☐ [ORACLE SERVICE] (e.g., Chainlink)

2.3.2 Valuation frequency:
☐ Real-time/continuous
☐ Hourly
☐ Daily at [TIME] UTC

2.3.3 Currency for valuation: USD

2.4 Margin Calls and Additional Collateral

2.4.1 Margin Call Trigger:

If the LTV ratio exceeds [MARGIN CALL THRESHOLD]% (the "Margin Call Level"), Borrower must either:

(a) Deposit additional Collateral to reduce LTV to [TARGET]% or below; or
(b) Repay a portion of the Loan to reduce LTV to [TARGET]% or below.

2.4.2 Response Time:

Borrower must respond to a margin call within [NUMBER] hours.

2.4.3 Margin Call Notice:

Lender will provide notice via:
☐ Email to registered address
☐ SMS/phone
☐ Automated platform notification
☐ Smart contract alert

2.5 Liquidation

2.5.1 Liquidation Trigger:

If the LTV ratio exceeds [LIQUIDATION THRESHOLD]% (the "Liquidation Level") and Borrower fails to cure within the margin call response time, Lender may liquidate Collateral.

2.5.2 Liquidation Process:

☐ Automatic Liquidation: Smart contract sells Collateral on [EXCHANGE/DEX]
☐ Manual Liquidation: Lender sells Collateral on open market
☐ Gradual Liquidation: Collateral sold incrementally to restore LTV

2.5.3 Liquidation Penalty:

☐ No penalty (Collateral sold at market)
☐ [PERCENTAGE]% liquidation penalty added to amount owed
☐ Liquidation discount of [PERCENTAGE]% (Lender receives premium)

2.5.4 Surplus and Deficiency:

• Surplus: If liquidation proceeds exceed amounts owed, surplus returned to Borrower
• Deficiency: Borrower remains liable for any deficiency after liquidation

2.6 Collateral Substitution

☐ Collateral substitution not permitted
☐ Collateral may be substituted with Lender's prior written approval
☐ Collateral may be substituted with assets of equivalent or greater value from approved list

2.7 Use of Collateral During Loan Term

2.7.1 Lender [MAY / MAY NOT] stake, lend, or otherwise use Collateral during the loan term.

2.7.2 If Lender may use Collateral:
- Any staking rewards belong to [LENDER/BORROWER]
- Lender must return equivalent Collateral, not necessarily the same tokens

2.7.3 If Lender may NOT use Collateral:
- Collateral remains segregated in escrow
- No rehypothecation permitted

ARTICLE 3: SECURITY INTEREST

3.1 Grant of Security Interest

Borrower hereby grants to Lender a continuing first-priority security interest in:

(a) All Collateral deposited pursuant to this Agreement;
(b) All proceeds of the Collateral;
(c) All substitutions and replacements of the Collateral;
(d) All airdrops, forks, and distributions attributable to the Collateral.

3.2 Perfection

3.2.1 The parties intend for the security interest to be perfected by:

☐ Control (Collateral held by or for benefit of Lender)
☐ UCC-1 Financing Statement filed in [JURISDICTION]
☐ Other method compliant with applicable law

3.2.2 Borrower shall cooperate with perfection efforts, including:
- Executing UCC-1 financing statements
- Providing control agreements
- Any other documentation reasonably requested

3.3 Further Assurances

Borrower shall execute and deliver any documents and take any actions necessary to perfect, maintain, and enforce Lender's security interest.

ARTICLE 4: REPRESENTATIONS AND WARRANTIES

4.1 Borrower Representations

Borrower represents and warrants that:

(a) Borrower has full power and authority to enter into this Agreement;

(b) This Agreement constitutes a valid and binding obligation of Borrower;

(c) Borrower is the sole owner of the Collateral, free and clear of all liens except as disclosed;

(d) No consent or approval is required for Borrower to pledge the Collateral;

(e) The Collateral is not proceeds of illegal activity;

(f) Borrower is not subject to bankruptcy or insolvency proceedings;

(g) All information provided to Lender is true and accurate;

(h) Borrower is not located in, a resident of, or subject to the laws of any Restricted Jurisdiction;

(i) Borrower is not on any government sanctions list.

4.2 Lender Representations

Lender represents and warrants that:

(a) Lender has full power and authority to enter into this Agreement;

(b) Lender has the assets necessary to fund the Loan;

(c) Lender is not located in, a resident of, or subject to the laws of any Restricted Jurisdiction;

(d) Lender is not on any government sanctions list.

ARTICLE 5: COVENANTS

5.1 Borrower Covenants

During the term of this Agreement, Borrower shall:

(a) Maintain the required Collateral levels;

(b) Promptly respond to margin calls;

(c) Notify Lender of any material adverse change in financial condition;

(d) Not create additional liens on the Collateral;

(e) Comply with all applicable laws;

(f) Provide financial information reasonably requested by Lender;

(g) Notify Lender of any change in contact information within [NUMBER] days.

5.2 Lender Covenants

During the term of this Agreement, Lender shall:

(a) Disburse the Loan as agreed;

(b) Provide timely notice of margin calls;

(c) Return Collateral upon full repayment;

(d) [If applicable] Not use Collateral except as permitted herein.

ARTICLE 6: EVENTS OF DEFAULT

6.1 Events of Default

The following constitute Events of Default:

(a) Payment Default: Failure to pay principal, interest, or other amounts when due;

(b) Collateral Default: Failure to maintain required Collateral levels after margin call and cure period;

(c) Breach of Covenant: Breach of any covenant that remains uncured for [NUMBER] days after notice;

(d) Breach of Representation: Any representation proves materially false;

(e) Insolvency: Borrower becomes insolvent, files for bankruptcy, or is subject to insolvency proceedings;

(f) Cross-Default: Default under any other material obligation;

(g) Material Adverse Change: Material adverse change in Borrower's ability to perform;

(h) Sanctions: Borrower becomes subject to sanctions.

6.2 Remedies Upon Default

Upon an Event of Default, Lender may:

(a) Declare all amounts immediately due and payable;

(b) Liquidate Collateral without further notice;

(c) Apply Collateral proceeds to amounts owed;

(d) Pursue any other remedies available at law or equity;

(e) Charge default interest at [RATE]% per annum on overdue amounts.

6.3 Cure Rights

For curable defaults, Borrower shall have [NUMBER] hours/days to cure after notice, except:
- Payment defaults must be cured within [NUMBER] hours
- Collateral margin calls must be cured within [NUMBER] hours

ARTICLE 7: TAXES

7.1 Tax Responsibility

Each party is solely responsible for its own tax obligations arising from this Agreement, including:

• Income or gains from interest payments
• Capital gains or losses from Collateral transactions
• Any withholding tax obligations

7.2 Tax Reporting

Lender may provide or be required to provide tax information to Borrower and/or tax authorities as required by law, including Form 1099-INT or Form 1099-DA.

7.3 Tax Withholding

If Lender is required to withhold taxes, Lender may deduct such amounts from payments to Borrower or require Borrower to provide additional funds.

ARTICLE 8: CONFIDENTIALITY

8.1 Confidential Information

Each party agrees to maintain the confidentiality of the other party's confidential information, including the terms of this Agreement, financial information, and wallet addresses.

8.2 Permitted Disclosures

Confidential information may be disclosed:
- To professional advisors under confidentiality obligations
- As required by law or legal process
- With the disclosing party's written consent
- To regulatory authorities as required

ARTICLE 9: LIMITATION OF LIABILITY

9.1 Limitation

EXCEPT FOR GROSS NEGLIGENCE OR WILLFUL MISCONDUCT, NEITHER PARTY SHALL BE LIABLE FOR INDIRECT, INCIDENTAL, SPECIAL, CONSEQUENTIAL, OR PUNITIVE DAMAGES.

9.2 Force Majeure

Neither party shall be liable for delays or failures caused by circumstances beyond reasonable control, including:
- Blockchain network failures or congestion
- Smart contract bugs or exploits
- Exchange failures
- Regulatory actions
- Natural disasters or acts of war

9.3 Market Risk

Lender is not responsible for losses resulting from market price movements of the Loan asset or Collateral.

ARTICLE 10: DISPUTE RESOLUTION

10.1 Governing Law

This Agreement shall be governed by the laws of [STATE/JURISDICTION], without regard to conflicts of law principles.

10.2 Dispute Resolution

☐ Arbitration: Disputes shall be resolved by binding arbitration under [AAA/JAMS] rules in [LOCATION]

☐ Litigation: Disputes shall be resolved in courts of [JURISDICTION]

10.3 Waiver of Jury Trial

EACH PARTY WAIVES ANY RIGHT TO A JURY TRIAL.

ARTICLE 11: GENERAL PROVISIONS

11.1 Entire Agreement

This Agreement constitutes the entire agreement between the parties regarding the subject matter hereof.

11.2 Amendments

This Agreement may be amended only by written instrument signed by both parties.

11.3 Assignment

Borrower may not assign without Lender's consent. Lender may assign its rights with notice to Borrower.

11.4 Severability

If any provision is invalid, the remaining provisions continue in effect.

11.5 Waiver

No waiver shall be effective unless in writing.

11.6 Notices

Notices shall be sent to the addresses above or as updated in writing.

11.7 Counterparts

This Agreement may be executed in counterparts, including electronically.

SIGNATURES

LENDER:

Signature: _________________________________

Name: [NAME]

Title: [TITLE, IF APPLICABLE]

Date: [DATE]

BORROWER:

Signature: _________________________________

Name: [NAME]

Title: [TITLE, IF APPLICABLE]

Date: [DATE]

SCHEDULE A: REPAYMENT SCHEDULE

SCHEDULE B: APPROVED COLLATERAL ASSETS

REGULATORY NOTICES

SECURITIES NOTICE: Depending on structure, cryptocurrency lending may implicate securities laws. This Agreement should be reviewed by legal counsel to assess securities law compliance.

LENDING REGULATIONS: Cryptocurrency lending may be subject to state lending laws, usury restrictions, and licensing requirements. Parties should verify compliance with applicable regulations.

TAX NOTICE: Interest income is generally taxable. Cryptocurrency transactions may trigger additional tax events. Consult a tax professional.

COLLATERAL RISKS: Cryptocurrency collateral is highly volatile. Liquidation may occur rapidly during market downturns, potentially resulting in losses exceeding the loan amount.

NO FDIC INSURANCE: Cryptocurrency held as collateral is not insured by FDIC or any government program.

This template is provided for informational purposes only and should be reviewed and customized by qualified legal counsel familiar with lending regulations and cryptocurrency law in your jurisdiction.