FAQs

General Questions

What is Binaxity?

Binaxity is a fintech company that offers credit products designed to align borrowing with long-term investing goals. Unlike traditional lenders that treat credit solely as a short-term solution, we offer tools intended to support structured financial planning over time.

What makes Binaxity different?

Our products are structured to automatically allocate borrowed funds into Bitcoin (BTC) - linking credit with consistent, disciplined investing. By doing so, we provide borrowers with a new way to manage liquidity while pursuing long-term financial objectives.

Who founded Binaxity?

Binaxity was founded by fintech executives with experience scaling lending platforms. They saw a gap: credit products built for long-term investing, not just short-term debt.

Who are Binaxity products designed for?

Binaxity’s solutions may appeal to individuals interested in structured investing through credit, including early-stage investors, self-employed professionals, and those who prefer automated contributions over time. Our approach supports long-term investment discipline — without requiring upfront capital.

Investment Line of Credit (I-LOC)

What is I-LOC?

A Binaxity I-LOC is a credit line that lets you draw funds when you choose, contribute your own capital, and have Binaxity match it 1:1 to purchase Bitcoin. Each draw becomes a separate interest-only loan, and your combined funds are used to accumulate BTC securely in custody.

How does it work?

1. Get approved for a credit line.

2. Choose a draw amount anytime.

3. Make your co-investment in USDC/USDT.

4. Binaxity matches your amount 1:1 and creates a loan for the matching portion.

5. Total funds are used to purchase Bitcoin within a few hours.

6. You make monthly interest-only payments on the borrowed amount.

7. You may redeem BTC anytime; proceeds first repay outstanding loan balance.

Your investment performance will vary based on market conditions, and all outcomes are subject to risk. ^[2][4]

Can I withdraw cash instead of investing?

No. I-LOC is designed specifically for investing. Funds are not available for discretionary spending or cash withdrawals. This structure is intended to help users stay aligned with long-term investment goals by preventing use for short-term consumption.

How is interest calculated?

You pay interest monthly on the portion of your credit line that you've drawn, not on the full approved amount. Interest is calculated using a simple (non-compounding) model, which means your interest cost remains steady unless you draw additional funds. This structure helps borrowers forecast their monthly obligations more clearly.

Is it secure?

Client assets are held by a licensed custodian in a bankruptcy-remote Special Purpose Vehicle (SPV), a structure intended to isolate them from company liabilities in the event of insolvency. While this arrangement offers legal and operational protections, it does not eliminate all risks. Binaxity also partners with regulated broker & dealers to acquire assets and adheres to industry-standard KYC, AML, and compliance procedures.

What is co-investment?

Co-investment means you put in $1, and Binaxity lends $1, giving you double the Bitcoin buying power. Example:

• You contribute $1,000

• Binaxity lends $1,000

• $2,000 in Bitcoin is purchased for your vault

This ensures both sides share aligned incentives and promotes disciplined, responsible accumulation.

How do I terminate the loan?

You can repay your balance at any time — there are no prepayment penalties. Once your loan is fully repaid, you may redeem your assets from custody (a small redemption fee applies). If you’d like to exit earlier, you can request a redemption, and proceeds will first be applied to your outstanding balance.

Redeeming assets may trigger a taxable event. Consult a qualified tax advisor to understand how this may apply to your situation.^[5]

What if markets drop?

Your BTC is not liquidated, regardless of volatility. There are:

• No margin calls

• No price-triggered liquidation

• No LTV requirements

However, the value of your BTC may decline. I-LOC is intended for long-term investing, not short-term speculation. ^[2][4][5]

Is this a brand-new idea?

Not entirely. Investment-linked lending strategies have been used in private banking and wealth management for decades. Binaxity's I-LOC product adapts similar principles into a structured, automated format - with the goal of making them more broadly accessible through technology and standardized pricing.

Is it like margin trading?

No - I-LOC is structured differently from margin accounts. It does not involve mark-to-market monitoring, margin calls, or forced liquidation. Unlike margin trading, it also doesn’t require initial capital deposits. These differences may reduce certain risks commonly associated with leveraged investing, though all investment products carry inherent risk.

Who benefits most from I-LOC?

I-LOC may appeal to individuals who prefer to invest gradually over time rather than making lump-sum investments, and who value the discipline of automated investing. It can also be considered by those with a long-term investing horizon and interest in portfolio growth through consistent contributions. As with any financial product, personal goals, risk tolerance, and financial circumstances should be evaluated independently.