How does the Abra loan product work?

Abra's loan product allows customers to borrow USDC without selling their crypto. It is a self-managed loan with instant loan approvals as long as you can supply the collateral for the loan. 

The fee is currently 0.20% per year on collateral, billed monthly in arrears. Abra calculates the management fee monthly in dollars using the average daily collateral balance, adding the outstanding balance to the invoice, and sweeping it out of the reserves (USDC, BTC, ETH in that order). If there is not enough held in your reserve at the time, Abra rolls the balance forward to future invoices.

Getting Started

The entire process has now been made easier!

If you have never taken out a loan, from the https://prime.abra.com main page, you will log in, scroll down to the Loans tab to the left of your screen, and simply click 'View Loan Terms'.

1. With our one-step loan process, you can view all of your terms on one page. Enter the amount the amount you wish to borrow, the collateral type*, the collateral amount will be calculated for you based on the terms you choose. You will see a screen that reflects the min and max amount of collateral you can supply as collateral from the asset you choose.

If you would like to customize your LTV and specifically state how much collateral you are submitting rather than have the platform calculate it for you, you can. Click the slider and enter the amount. It will let you know how much collateral is needed for a certain amount of LTV.




2. You can change the amount of the loan or the collateral as much as you want on this page. However, once you request loan terms, the loan will process under those terms. 

 3. Once you are ready, click: Request Loan Terms. 
 

Additionally, our Ops team wraps BTC in batches, which takes place once a day so if yours is not wrapped that day it will be done the following day with the next batch. 

 
*BTC submitted as collateral will need to be wrapped into CBBTC, Abra handles this process automatically for you. However, the process will take 24 hours during the week, and if you are submitting a loan request on a Friday or over the weekend, it will not be processed until the following Monday. If a holiday occurs within this timeline that will delay the process. If you submit ETH as collateral, it does not need to be wrapped. 


Please note, the photos above are an example only. The rate may vary.
Where can I find additional information about my collateral?
What does LTV mean?