SALT Shield™ is a proprietary product of SALT Lending (Lender). When a Borrower purchases SALT Shield™ for their Loan, Lender agrees it will not enforce its margin call liquidation rights with respect to Borrower’s Loan Collateral, including, but not limited to, converting Blockchain Assets held as Collateral into Stablecoin (Stabilization), if Borrower does not maintain Collateral in an amount above the Margin Call LTV percentage required, as set forth in the Loan Documents. This forbearance is applicable only during the time period for which the SALT Shield™ was purchased with respect to the Loan (typically, through the Maturity Date).
SALT Shield™ does not alter any of Borrower’s payment obligations in respect of interest, principal or other Loan Obligations. Borrower is obligated to pay all Loan Obligations at the Maturity Date regardless of then-current LTV.
Borrower will not be able to refinance their Loan, at maturity or otherwise, unless LTV requirements for such refinancing are satisfied, and subject to such other terms and conditions as determined by Lender at such time.
No Withdrawals. Notwithstanding any terms provided in the Loan Documents to the contrary, Borrower acknowledges and agrees that, upon the purchase of SALT Shield™, no Collateral withdrawals shall be permitted until the Maturity Date regardless of the then-current Loan LTV or Lender’s past practices.
BTC Collateral. SALT Shield™ is available only for Loans whose collateral is solely BTC.
Availability and Pricing. Availability is based upon loan-specific terms and conditions, LTV minimums, term length, jurisdictional restrictions and other requirements, as may be subject to change from time to time and as determined by Lender at time of purchase. Lender reserves the right to offer or not to offer SALT Shield™ with respect to any Borrower, any Loan, at any time, or to temporarily or permanently cease offering the product. SALT Shield™ is not available for Loans below a required Loan minimum. Lender may decline the offer of purchase of SALT Shield™ at any time, due to market conditions or otherwise. Lender reserves the right to cease offering SALT Shield™ in the future, to adjust the product offering and/or to alter pricing or other terms.
The product fee and availability of the SALT Shield™ product may be subject to market conditions. Lender may provide indicative pricing on the website, mobile app or other platform; indicative pricing is subject to adjustment. The SALT Shield™ fee will be indicated at time of purchase. The SALT Shield™ fee quoted at time of purchase shall be valid for 24 hours, after such time Lender reserves the right to accept such amount delivered as payment, inform Borrower of an updated fee, provide Borrower with another 24-hour period to provide updated fee, and/or refund any amounts delivered, without activation of the product. Lender reserves the right to provide pricing of SALT Shield™ fee only on business days and/or during business hours.
SALT Shield™ is only available for purchase after Loan disbursement. It is an optional product / service add-on to a Loan and not a loan fee. Adding SALT Shield™ is not mandatory. Indication of interest by Borrower prior to Loan disbursement does not ensure a Borrower will be offered the product.
SALT Shield™ must be paid for in full, received and processed by Lender to effectuate purchase and activation of the product. Product activation may not occur for two (2) business days after receipt and processing of payment in full. In the event of a Margin Call LTV event prior to activation, Lender reserves the right to refund the SALT Shield™ fee in full and Borrower will be deemed to have not purchased the SALT Shield™.
Not Refundable. The SALT Shield™ fee is non-refundable, provided that Borrowers who purchase the SALT Shield™ product may elect to cancel such purchase within 3 days of payment for a full refund. Notwithstanding the foregoing, in the event there is a Margin Call LTV default during such 3-day period (whereby the Loan LTV is 90.91% at any moment), the refund period shall be shortened and conclude at the time of such Margin Call LTV default and the fee shall be non-refundable. Prepayment of a Loan, in full or in part, shall not result in a refund, in whole or in part, of the SALT Shield™ fee.
Prepayments With Collateral. Notwithstanding any terms provided in the Loan Documents to the contrary, Lender will decline Borrower’s request that Lender liquidate Borrower’s Collateral for the purpose of payment in full or in part of the Loan and Loan Obligations prior to the Maturity Date where Borrower’s Collateral, at the time of such request, is insufficient to prepay in full all Loan Obligations (i.e., LTV 100% or higher).
Refinancing. Refinancing of a Loan prior to Maturity Date shall not result in a refund, in whole or in part, of the SALT Shield™ fee. Notwithstanding the foregoing, in the event of a refinancing of a Loan subject to SALT Shield™ which results in an additional disbursement of new principal to Borrower prior to the date that is 30 days before the Maturity Date shall be provided a credit toward the purchase of SALT Shield™ for the refinanced Loan, which credit shall be calculated as follows:
Number of Days to Maturity Date ÷ 365 x 50% of existing Loan’s SALT Shield™ Fee
The refinancing SALT Shield™ fee credit is only applicable if Borrower purchases and activates SALT Shield™ within 3 business days of the new Loan commencement date. If Borrower elects not to purchase SALT Shield™ during such period, the credit shall be non-refundable and not applicable to subsequent purchase or Loan payment.
Additional Terms, Conditions and Disclosures.
The SALT Shield™ product represents a temporary forbearance of Lender’s right of enforcement of margin call rights under the Loan Documents for a fixed, predetermined period of time. SALT Shield™ is not insurance, nor an insurance product.
By purchasing SALT Shield™ you acknowledge that you understand that the product represents Lender’s agreement to forbear, for a fixed period of time, from the exercise of certain rights and remedies relating to the failure to maintain Margin Call LTV. You further acknowledge that no Lender representative has made any representation that SALT Shield™ is insurance against, nor coverage (as used in insurance products) for any risk of loss, and waive any right to assert or claim otherwise.
SALT Shield™ does not alter any risks or risk disclosures provided to Borrower with respect to the Loan, except as they relate specifically and exclusivity to the Lender’s margin call rights and enforcement thereof.
SALT Shield™ terminates at the Maturity Date of the Loan.
Lender may continue to deliver Borrower margin notices with respect to the Loan LTV, regardless of Borrower’s purchase of SALT Shield™ product.
SALT Shield™ is not offered in every jurisdiction where SALT lends.
By purchasing SALT Shield™ you are acknowledging you understand and agree to the product terms and conditions, as may be amended from time to time.
* Certain terms utilized but not defined herein have the meanings ascribed in the Loan & Security Agreement.
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