FREQUENTLY ASKED QUESTIONS ABOUT OUR SERVICES

We're always updating our FAQ, so if you have a question that's not answered please don't hesitate to ask hello@unchained-capital.com.

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GENERAL QUESTIONS

What browsers are supported?

We support Chrome, Firefox, Opera, and Brave browsers. Trezor Model One, Trezor Model T, Ledger Nano S, and Ledger Nano X are compatible with the following browsers: Chrome, Firefox, and Brave. Users may experience signing issues with Ledger devices on Chrome version (73.0).

What devices are supported?

Our website can be used and accessed via desktop, laptop, or mobile browser. However, the vaults platform for keys and signing is meant to be used only via laptop or desktop.

What hardware wallets are supported?

As of July 24, 2019, we support the Trezor One, Trezor Model T, Ledger Nano S, and Ledger Nano X signing devices.

What happens if I lose my key?

In the case a key is lost or compromised, key replacements are facilitated through our interface. Any funds associated with a lost key will be swept to a new address as directed by the customer in the case of a vault or as coordinated between Unchained and a customer in the case of loan collateral. This sweep will require a signature from a second device and one from Unchained. Once completed, any loan or vault successfully swept will now be associated with the new key provided by a customer.

How does Unchained Capital store my collateral?

Collateral is either stored in a multi-institution multisignature address, or a single-institution multisignature address, depending on the borrower’s choice at the time of a loan.

Unchained Capital’s multi-institution custody solution enables borrowers to distribute trust across three different parties: Themselves, Unchained Capital, and a 3rd-party key agent. Each party holds one key, and two of the three keys are always required to authorize a transaction (2-of-3 multisig).

In both single and multi-institution custody solutions, the collateral storage addresses are backed by hardware wallets. Hardware wallets that are controlled by Unchained or 3rd parties are PIN/password protected and operated by authorized signing staff in multiple US cities.

All addresses we provision from our multisig cold wallet are single-purpose and dedicated to each customer loan.

At no point does customer collateral reside in a network-connected (hot) wallet of any kind.

Unchained Capital does not automate withdrawals of collateral. All transactions require intervention and coordination of multiple executives and authorized signing staff.

LOANS

What type of collateral do you accept?

Unchained Capital currently offers crypto-secured loans using Bitcoin as collateral.

What index is used for cryptocurrency prices?

Unchained Capital references the CME CF Real Time Index, a spot price index with independent oversight and data fed by trading platforms such as Bitstamp, GDAX, itBit and Kraken.

To determine loan-to-value ratios and collateralization for Bitcoin, Unchained Captial references CME CF Bitcoin Real Time Index.

What is your loan-to-value ratio?

We lend at a 50% loan-to-value ratio. Customers may borrow $1 for every $2 of collateral deposited.

What loan durations are available?

Loan durations from 3 months – 36 months are available for application.

What is your minimum loan amount?

The minimum loan amount is $10k for domestic loans and $100k for international loans. Requirements on minimum size, interest rates, and other details do differ between states.

What interest rates do you charge?

Interest rates vary by location, loan size, and other parameters.

Interest Rates typically range from 7.25-13%

Are there any prepayment fees?

No. Loan principal and accrued interest can be paid down at any time without penalty.

How does Unchained Capital store my collateral?

Collateral is either stored in a multi-institution multisignature address, or a single-institution multisignature address, depending on the borrower’s choice at the time of a loan.

Unchained Capital’s multi-institution custody solution enables borrowers to distribute trust across three different parties: Themselves, Unchained Capital, and a 3rd-party key agent. Each party holds one key, and two of the three keys are always required to authorize a transaction (2-of-3 multisig).

In both single and multi-institution custody solutions, the collateral storage addresses are backed by hardware wallets. Hardware wallets that are controlled by Unchained or 3rd parties are PIN/password protected and operated by authorized signing staff in multiple US cities.

All addresses we provision from our multisig cold wallet are single-purpose and dedicated to each customer loan.

At no point does customer collateral reside in a network-connected (hot) wallet of any kind.

Unchained Capital does not automate withdrawals of collateral. All transactions require intervention and coordination of multiple executives and authorized signing staff.

What happens to my collateral during my loan?

Once approved, we will generate an address in our cold storage vault dedicated to your loan. You will send your collateral to this address.

Funds will remain in this address for the duration of your loan. You will be able to monitor the balance at any time using our website or any other block explorer you wish.

For maintenance reasons, we may move the funds from the original vault address to another vault address. You will be notified in advance in such a scenario.

We do not leverage your collateral for other products or services (no fractional-reserve lending).

When you close your loan and repay your principal, your collateral will be returned to an address of your choosing.

If your loan enters default at any time, we will be forced to liquidate a portion of your collateral in order to cover our principal cost and any unpaid interest. Any remainder will be returned to an address of your choosing.

What happens if the price decreases?

An email notification will be sent out to alert borrowers of a price decrease. To bring a loan back to the original loan-to-value ratio, a borrower may: 1) Deposit additional collateral or 2) Submit a principal payment in USD

What happens if the price increases?

Partial returns of collateral are available upon request once the collateral:principal ratio exceeds 250% (equivalent to 40% loan-to-value). We will only honor requests if it has been at least 30 days since the start of the loan or the last margin call.

Do you offer line of credit loans?

The loan agreement is structured as a Term Loan. Initial loan funding will be for the entire loan amount. Interest only payments will be due monthly with a final lump sum payment due at the end of the term. Additional principal payments can be made at any time during the loan without penalty.

Do you offer international loans?

Yes. Unchained Capital operates internationally depending on the jurisdiction. Support for international borrowers is limited to loans with a commercial purpose and a $100k USD minimum loan amount.

Why do you collect profile details?

The profile information we collect is in the service of our Know Your Customer (KYC) and Anti-Money Laundering (AML) policies. Personal loan profile details include name, birth date, address, SSN, photo ID, and source of funds. Business loan profile details include legal name, address, EIN, Articles of Incorporation, Certificate of Good Standing, proof of address, plus details on principals and large shareholders.

What are the requirements to obtain a personal loan?

You must live in a jurisdiction in which Unchained can make personal loans.

You must complete our KYC/AML program when you apply for an account.

You must deposit the appropriate collateral amount into your loan’s vault address.

In which states does Unchained Capital make personal loans?

Unchained Capital makes personal loans in most US states. Requirements on minimum size, interest rates, and other details do differ between states so reach out to understand whether we can work with you.

We are constantly expanding our reach and hope to work with borrowers across the country soon. Personal loans are currently **not** available in the following states:

  • Alabama
  • Idaho
  • Louisiana
  • Maryland
  • Michigan
  • Mississippi
  • Missouri
  • Montana
  • Nevada
  • New York
  • North Dakota
  • Ohio
  • South Dakota
  • Tennessee
  • Vermont
  • Washington

Does borrowing with Unchained affect my credit score?

No. Unchained Capital does not perform a credit check when evaluating borrowers. We do not report information to any credit bureau. We may conduct an eligibility inquiry (known as a “soft credit pull”). This inquiry does not affect your credit score.

What are the requirements to obtain a business loan?

The business must be located in a jurisdiction in which Unchained can make business loans.

The business must complete our KYC/AML program when applying for an account. This includes providing information about all directors, officers, and shareholders with more than 20% ownership in the business.

The business must deposit the appropriate collateral amount into their loan’s vault address.

In which states does Unchained Capital make business loans?

Unchained Capital makes business loans in most US states. Requirements on minimum size, interest rates, and other details do differ between states so reach out to understand whether we can work with you.

We are constantly expanding our reach and hope to work with companies across the country soon. Business loans are currently **not** available in the following states:

  • Alabama
  • Nevada
  • New York
  • North Dakota

 

  • South Dakota
  • Tennessee
  • Vermont

 

VAULTS

What do you charge for a vault?

Client-controlled vaults have no set-up or storage fees.
Multi-institution vaults have a one-time $500 set-up, and a 0.25% annual storage fee (billed monthly).
If requested to counter-sign a transaction for a client-controlled or multi-institution vault, Unchained charges $20 for individuals and $125 for businesses per request. Users can always withdraw their funds from a client-controlled vault using their own 2 keys without incurring additional fees.

Do you accept international profiles?

We support both domestic (U.S.) and international clients.

What is the difference between Client-Controlled and Multi-Institution models?

The client-controlled model is where the user holds two-of-three keys and maintains sovereignty over their bitcoin. Unchained Capital holds the third key and acts as a redundant backup or as a trusted cosigner in the case you request us to sign a transaction.

The multi-institution model is when the user holds one key, Unchained holds the other, and Citadel SPV holds the third key; this model is tailored for the needs of multi-person organizations including investments funds or small businesses.

What user information does Unchained store?

Unchained only requires a basic KYC profile for a vault user. This includes name, date of birth, identification (driver’s license or passport) and address.

How many hardware wallets do I need for a Client-Controlled vault?

We recommend using two hardware wallets with two separate sets of wallet words.

What happens if Unchained goes away?

Bitcoin stored in a vault address can be spent without access to Unchained’s website at any time so long as a user has two of the three keys associated with the vault and has acquired certain information beforehand from their vault page. Below we describe the steps needed to acquire this information and to cause a spend to occur without Unchained’s web services.

Steps:

  1. From the Vault page, click the three dots in the “Transact” card and then follow the link to “External Spend Info.”
  2. Copy the BIP32 paths for key 1 and key 2 (e.g. m/45’/0’/0’/0/26) and store them in a safe and secure place.
  3. Click the button “Show Redeem Script” in order to reveal the Redeem script (e.g. 5221026c76fc386b6c339577eea265242eb902df43155a0eaf23af1f96c5d9f2d10f63210329b59270b95c8478fa36e0cf6f474736 513d4e0157626b762dca41729e7756c22102b5b79489d0e3810ef911bfde82aad7d65e6d5fb4147686139d291f66eefd964d53ae) and store this in a safe and secure place.
  4. Follow the instructions in our bitcoin-multisig library to spend using our custom scripts.

Note that the redeemscript and BIP32 paths are unique PER ADDRESS. This means after a withdrawal, you will need to record the new redeemscript and BIP32 paths for the new vault address. Without the redeemscript and BIP32 paths, you will not be able to spend from an Unchained Vault address.

Since we actively monitor all vault addresses as part of our service, we appreciate when clients inform us before they spend outside of our system to ensure the authenticity of the transaction.

LABS

Will Caravan support new and upcoming features such as PSBT and Miniscript?

Partially signed bitcoin transactions (PSBT) and miniscript are two emerging standards for bitcoin transactions and scripts.

Caravan doesn’t use PSBT yet because no wallets it supports do; this will change if wallet providers transition to PSBT.

The multisig addresses built by Caravan are simple M-of-N addresses but we are excited about adding features such as time locks or other functionality. Miniscript may prove to be a great way for users to communicate their desired script structure to Caravan.

There are many other new features planned on the bitcoin roadmap including Schnorr signatures, MAST & Taproot. Caravan aims to be a proving ground for code connecting wallets to these new developments.

What about web wallet security?

Caravan is currently a browser-based web application, compatible with Chrome & Firefox browsers. When using real BTC, like any browser-based wallet, Caravan should only be run in Incognito/Private Browsing mode on a trusted browser on a trusted computer.

When creating addresses, Caravan displays all public keys and redeem scripts, making it easy for you to check Caravan’s work using external tools. You can also use Caravan to confirm your ownership of any address, simply navigate to Interact then input your redeem/witness script, and choose Confirm Ownership.

When spending with Caravan, always confirm addresses and amounts seen in the browser on your hardware wallet or signing device.

Why does Caravan only display one address at a time?

In this initial release, Caravan works with a single multisig address at a time. This makes Caravan most appropriate for hodlers who don’t move their bitcoin very often. The flexibility to make “strange” multisig addresses makes Caravan extremely useful for recovering funds from a variety of other multisig wallets.

We plan on adding a full-fledged, multi-address wallet interface to Caravan. This will make Caravan even easier to use for bitcoiners who trade or move their assets frequently.

What information do I need from other multisig wallets to spend from Caravan?

Caravan can be used to recover bitcoin from a variety of multisig addresses, including those which don’t follow standards and best practices.

For each M-of-N multisig address you want to recover funds from, you will require the address’ redeem/witness script, at least M keys you used when creating the address, as well as the BIP32 paths used to create the address from each of the M keys.

Once you have this information, choose Interact, enter your redeem/witness script, choose which addresses you want to recover funds to, and being collecting signatures, one for each of your M keys. Each signature for each key will require you entering the corresponding BIP32 path.

You may want to consult this wallet recovery resource to understand which BIP32 paths your wallet uses for multisig.