Genesis Lending: → Assets Interest & Terms Process Account FAQs
Genesis Lending: Frequently Asked Questions
1. Assets
What assets can I lend to Genesis to generate yield?
→ AAVE, ADA, ALGO, ATOM, BAT, BCH, BNB, BSV, BTC, COMP, DAI, DASH, EOS, ETC, ETH, FTT, HT, KNC, LEND, LINK, LTC, MKR, NEO, OMG, PAX, PAXG, RSV, SNX, SUSHI, TRX, TUSD, UNI, USD, USDC, USDT, XLM, XMR, YFI, ZEC, ZEN and ZRX. → This list is subject to change - please confirm with your Genesis account representative.
What assets does Genesis have available to borrow?
→ Assets are based on current lending desk inventory. → Assets Genesis Lending has worked with historically include: AAVE, ADA, ALGO, ATOM, BAT, BCH, BNB, BSV, BTC, COMP, DAI, DASH, EOS, ETC, ETH, FTT, HT, KNC, LEND, LINK, LTC, MKR, NEO, OMG, PAX, PAXG, RSV, SNX, SUSHI, TRX, TUSD, UNI, USD, USDC, USDT, XLM, XMR, YFI, ZEC, ZEN and ZRX. → Asset availability is subject to change - please confirm current inventory with your Genesis account representative.
1 - 11 Genesis Lending: → Assets Interest & Terms Process Account FAQs
What are Genesis' minimum borrowing and asset lending volumes?
→ Genesis lending and borrowing minimums are 100 units of BTC, 1,000 units of ETH or $1,000,000 of USD or stablecoins. → As an institutional focused lending desk, we diligence each borrower. Our average loan size is ~$4mm and all loans require information on the borrower’s financial condition. If you would like to learn more about borrowing from Genesis, please reach out to your Genesis representative to begin the process. → All loans require information on the financial condition of the borrower. Please reach out to your Genesis contact to learn more about borrowing from Genesis.
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2. Interest & Terms
How are Genesis rates determined?
→ Genesis operates one of the largest lending desks in the digital asset industry. → Rates are based on prevailing market conditions and reflect supply and demand mechanics within our portfolio of counterparties.
How is interest paid after I've lent assets to Genesis?
→ Interest is paid out monthly and can either be compounded or deposited into a separate account. → You can view your Genesis statement on the 1st day of each month on our Prime platform. → Payments are made the 1st week of the following month for fixed term and open term loans. → Lenders select whether they would like to receive interest in-kind or in USD at the point of loan initiation. → If nothing is indicated at that point, default payment is in-kind with interest compounding monthly.
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How is interest managed after I've borrowed assets from Genesis?
→ Borrowers of assets from Genesis can view their invoices on the 1st day of each month on our Prime platform. → Payments are expected the 1st week of the month for fixed term and open term loans. → Clients can choose to pay in-kind or in USD. → Borrowers select whether they would like to pay interest in-kind or in USD at the point of loan initiation. → If nothing is indicated at that point, default payment is in-kind.
What does Genesis accept for LTV and collateral?
→ LTV is determined on the basis of our business and risk assessment process. → Depending on client type, requested materials may include a Due Diligence Questionnaire, a Personal Financial Statement and/or a balance sheet. → Collateral for borrowers is managed on a net loan basis as defined by our term sheet.
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I want to lend assets to Genesis. What loan types are available to me?
→ Historically, Genesis has paid a higher interest rate to lenders for longer durations. Please contact your Genesis representative for the latest pricing. → Fixed term loans to Genesis are not callable by clients. → Open loans are callable by either party. → Section II. c. of our Master Borrow Agreement provides additional details on our Loan Repayment Procedures. → Section II. c. specifies Genesis has 7 days to return assets to lenders. In practice, most returns take place within a few hours or on the same day.
5 - 11 Genesis Lending: Assets → Interest & Terms Process Account FAQs
How does Genesis handle refinancing on open term loans?
→ Open term rates are subject to refinancing by both borrower and lender. → Genesis does not automatically refinance loans. → Genesis will always speak with clients to discuss refinancing and provide market color and context about changes in rates. → Genesis makes decisions based on a holistic view of our book, the market and any outliers that may exist.
Does Genesis provide insurance on accounts?
→ Genesis does not offer insurance on specific loans or portfolios of loans. → Digital assets are not covered by SIPC insurance. → Establishing a lending and borrowing relationship with Genesis is not the same as opening a depository account or a savings account. → Accounts with Genesis do not enjoy FDIC protection. → Genesis works on a bilateral basis and signs a separate agreement for each loan tranche. → For a detailed look at our implementation of risk policies and practices, including during strong downward market movements, please see our Q1 2020 quarterly report.
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3. Process
What is the process to lend assets to Genesis for the first time?
→ As a first step, our legal team issues a Master Borrow Agreement (MBA) for signature by both parties. This is the governing document for the relationship. → Next, Genesis issues a term sheet as per Exhibit B of our MBA. → Genesis provides wiring instructions or a wallet address for crypto assets. → Prime accounts are set up by a Genesis account manager. → For reference, our lending email is [email protected]. We are available to communicate via email, Telegram, Bloomberg and/or phone. Balances can be viewed in Prime accounts.
What is the process to borrow from Genesis for the first time?
→ As a first step, our legal department issues a Master Loan Agreement (MLA). This is the governing document for the relationship. → Prospective clients complete a Due Diligence Questionnaire and/or Personal Financial Statement. → Genesis issues a term sheet as per Exhibit B of our MLA. → Genesis provides wiring instructions or a wallet address for crypto assets. → Clients send collateral as per their term sheet. Genesis sends borrowed asset to a whitelisted crypto address or bank account. → Clients can email GGC Operations at [email protected] to discuss whitelisting addresses. → Prime accounts are set up by a Genesis account manager. → For reference, our lending email is [email protected]. We are available to communicate via email, Telegram, Bloomberg and/or phone. Balances can be viewed in Prime accounts.
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4. Account
What are Genesis lending desk hours?
→ Our lending desk is open during New York business hours. → Settlements can be expected between 8am and 5pm EST.
What is the best way for clients to communicate with Genesis?
→ Our team works with clients across Telegram, Bloomberg, email and phone.
How can clients view their loan balance?
→ Loan Balances, interest accrued, and interest owed are accessible through our Prime platform. → If you are unable to log in to your account, please reach out to your Genesis contact directly.
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What tax documents does Genesis provide at the end of the year?
→ Genesis provides a 1099-MISC for all individuals onboarded with Genesis Global Capital, LLC. → Clients can download reports through our Prime platform including details of accrued interest, loans outstanding, and collateral balances held. → Genesis does not provide tax, legal or accounting advice. → Clients should consult their own tax, legal and/or accounting advisor before engaging in any transactions.
Does Genesis have a lending API and RFQ system?
→ The Genesis API and RFQ systems are not yet available. → Under current workflows, clients must contact a Genesis team member to inform them of assets they are looking to lend. → Once terms are agreed (# of units, duration & rate), Genesis issues the appropriate term sheets for signature via DocuSign. → Once assets are transferred, balances are viewable through the Prime platform.
9 - 11 Genesis manages every aspect of onboarding through a dedicated account representative.
We look forward to working together. If you have any additional questions, please get in touch.
Contact Us
(212) 668-5921 [email protected] www.genesistrading.com
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About Genesis Genesis Prime 2020 Q4 Report
Disclosures The information provided in this communication does not constitute investment advice, financial advice, trading advice, or other advice. You are advised to make your own assess- ment of whether a Genesis service that you are considering is suitable for you and ensure that you have the necessary experience and knowledge to understand the risks involved in relation to those particular services, transactions or investments. The trading of digital cur- rency as herein described, even within the protections afforded by the NYS DFS BitLicense, is an inherently risky activity. Digital currency does not benefit from the protections afforded by the Securities Investor Protection Corporation. A counterparty’s ability to enter into deriv- atives with Genesis may depend on meeting a number of regulatory requirements, including but not limited to characterization as an eligible contract participant under US law. BVI law may restrict the types of tradable instruments. The permissibility
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