Clapp Launches Crypto Credit score Line With 0% Curiosity on Unused Funds

Clapp has not too long ago launched a crypto-backed credit score line that permits customers to borrow towards Bitcoin (BTC) and Ethereum (ETH) whereas paying 0% curiosity on unused funds. The product is designed to provide crypto holders entry to on-demand liquidity with out incurring prices till capital is definitely deployed.In contrast to conventional crypto loans that accrue curiosity from the second a mortgage is issued, Clapp’s providing is structured as a revolving credit score line. Customers are authorized for a borrowing restrict based mostly on the worth of their BTC or ETH collateral, however curiosity applies solely to the portion of funds they select to make use of.Credit score Line Construction and Curiosity MechanicsOnce BTC or ETH is deposited, Clapp assigns a credit score restrict linked to the collateral’s market worth. Customers might draw from this restrict at any time, in full or partially, and repay and not using a fastened schedule. As borrowed funds are repaid, the out there credit score is restored mechanically.Underneath this mannequin, unused credit score carries a 0% rate of interest. Borrowing prices start solely when funds are withdrawn and are calculated based mostly on loan-to-value (LTV). Protecting LTV under 20% helps keep low borrowing prices and reduces publicity to market volatility.Clapp acknowledged that the construction is meant to separate entry to liquidity from borrowing itself, permitting customers to keep away from paying for capital they don't actively use.Deal with Danger Management and TransparencyBTC and ETH value volatility makes LTV administration a central consideration in crypto lending. By tying curiosity to utilization reasonably than approval measurement, Clapp’s mannequin encourages conservative borrowing and clearer price expectations.Decrease LTV ranges present:

Higher buffer towards value actions


Decreased liquidation danger


Extra predictable borrowing prices

Curiosity stops accruing instantly as soon as borrowed funds are repaid, whereas unused credit score stays interest-free.Versatile Compensation ModelThe credit score line doesn't have a set maturity date. Customers might repay partially or totally at any time, with out penalties. This flexibility positions the product for short-term or intermittent liquidity wants reasonably than long-term leverage.Clarifying the “0% Curiosity” ConditionClapp emphasised that the 0% curiosity situation applies particularly to unused credit score, to not funds already borrowed. Borrowed quantities accrue curiosity based mostly on LTV, reflecting precise danger publicity.This distinction is meant to make sure transparency and keep away from frequent misconceptions round zero-interest crypto loans.About ClappClapp is a digital belongings platform that mixes investing, swapping, holding, lending, and curiosity accrual in a single software. The platform supplies customers with entry to crypto-backed credit score traces, asset administration instruments, and yield-generating options designed for versatile capital use.Clapp operates as a licensed Digital Asset Service Supplier (VASP). Person funds are secured by way of Fireblocks, which supplies institutional-grade custody and transaction infrastructure.Web site: clapp.financeDisclaimer: This text is offered for informational functions solely. It's not supplied or supposed for use as authorized, tax, funding, monetary, or different recommendation.