Exchange-Navigating Your Flex Rate Loan

This content is for informational purposes only and does not constitute financial advice.

This article provides an overview of the screens and options available to users with an active Flex Rate Loan.

1.  Viewing Your Loan: On the home screen of the Figure Markets mobile app, you can view a summary of your active accounts. Please note that your Flex Rate Loan will be labeled as a Margin Loan.

      2.  By tapping on your Margin Loan, you can access several detailed views:

• Loan Overview: Tapping the main Margin Loan card provides a snapshot of your account, including your Loan-to-Value (LTV) ratio, Overall Health status, and Outstanding Balance.

• Asset Details: Tapping on the specific asset (e.g., US Dollar) displays your interest metrics. This includes your Current APR, Estimated Next Period APR, Period Interest Accrued, and 24-Hour Interest Accrued.

• Outstanding Balance: Tapping on the Outstanding Balance section provides a detailed breakdown of your LTV ratio. Here, you can also view your Margin Levels, which outline the specific LTV thresholds used to determine your loan's health metrics.

The Figure Flex Rate Crypto-Backed Loan (CBL) is a collateralized, open-end credit line secured by cryptocurrency, available only on the Figure Markets Democratized Prime borrowing platform. The CBL is fully drawn at the time of origination, and additional draws may be taken if eligible. The rate is set by supply and demand among platform participants. It features a flexible, market-based interest rate determined through an automated Dutch auction process that takes place each hour. The initial funding amount at origination will be based on the accepted collateral and the rate established by the Democratized Prime auction at the time of loan acceptance, and the rate applicable to each loan will be fixed once the loan offer is accepted for the current settlement period (one hour). After acceptance, the rate is fixed for a one-hour settlement period and can change each subsequent hour to reflect current market conditions. Your interest rate updates automatically each time the platform settles a new auction. 

Rates may increase or decrease during each auction or hourly settlement period, depending on platform demand, liquidity, and market conditions; the rate displayed before loan acceptance is indicative only, and the final rate is set upon loan acceptance at the close of the applicable auction and may differ from the rate shown when your offer is submitted. The rate displayed before you accept the loan is not final. A matching fee of 50 basis points (0.50%) annually is applied to each loan on a prorated basis and is integrated into each hourly borrowing rate, which is in the displayed APR. Market factors and volatility may be unpredictable.

Interest costs and collateral requirements may change with rate fluctuations, and there are no limits or caps on rate changes other than those imposed by state lending laws. If your loan-to-collateral ratio exceeds platform limits due to rate or market changes, additional collateral may be required. Rates are determined through competitive auction, so borrowing cost may increase substantially. Borrowers acknowledge that the interest rate on the loan is variable and subject to change (historical auction rates are accessible on the Democratized Prime Platform but do not predict future rates). Additionally, the CBL is only available in eligible jurisdictions as determined by Figure Markets.

The Figure Flex Rate Crypto-Backed Loan  is a Figure Markets product offered through Democratized Prime and Figure Markets is an affiliate of Figure Lending LLC.

This content is for informational purposes only and does not constitute legal or financial advice. This communication is not an offer to lend, extend credit, sell nor a solicitation of an offer to buy securities, tokens, or any digital assets.

Investing in cryptocurrencies involves significant risks. Cryptocurrency trading is not available in NY. Please click here for risk disclosures on investing and trading in cryptocurrencies.

Figure Payments Corporation offers self-directed investors and traders cryptocurrency services. It is neither licensed with the SEC or the CFTC nor is it a Member of NFA. Figure Payments Corporation's NMLS ID number is 2033432, and is located at 100 West Liberty Street, Suite 600, Reno, NV., 89501. You can verify Figure Payments licensing status at the NMLS Consumer Access website. Click here for Figure Crypto's state license and regulatory disclosures.

Products and services are available through Figure Markets a brand name of Figure Markets Holdings, Inc. Both Figure Payments Corporation and Figure Markets Holdings, Inc. are wholly owned subsidiaries of Figure Technology Solutions, Inc.