Guide to using the Credit Account

💡 Note: This article applies to app versions prior to v3.0.0.
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The Credit Account gives you the freedom to spend without selling your crypto. By using your assets as a safety collateral, you get an instant credit line for your daily purchases.

Funding Account vs. Credit Account

To use this feature, your assets are organized into two categories:

• Funding Account : This is your primary wallet where all deposits arrive. It functions like a standard spending or savings account.

• Credit Account : This is a dedicated account for pledged assets. When you move crypto here, it acts as collateral. While these funds cannot be withdrawn while a balance is outstanding, they provide you with a real-time credit limit for spending.

How the Credit Process Works

1. Transfer & Pledge: You move a specific amount of crypto from your Funding Account to your Credit Account to serve as collateral.

2. Spend via Card: When you use your RedotPay card, the transaction is deducted from your credit limit rather than your wallet balance.

3. Credit balance & Interest: Spending generates a credit balance.

   1. Daily Interest: Interest is calculated daily based on the principal portion of your credit balance.

   2. Simple Interest: Interest is added to the total credit balance but does not accrue interest on itself (no -compounding).​

Flexibility & Safety

• No fixed billing cycle: There is no fixed bill. You can repay at any time (Pay-as-you-go).

• Loan-to-Value (LTV) Safety Buffer: You can maintain your position indefinitely, provided the ratio of your Credit Balance to Real-time Collateral Value remains below 0.9 (90%).
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Credit provided by RedotPay must be repaid according to the terms of service. Failure to repay may result in additional fees or restrictions on your account.

​You have to repay your loans. Don't pay any intermediaries.

Money Lender's Licence No: [1715/2025]

Hotline: [phone]