On Tuesday, the officials at Maple Finance, a cryptocurrency lending protocol providing services on an institutional level made an announcement.
Alongside its delegate Icebreaker Finance, Maple Finance made an announcement regarding the launch of a new Lending Pool.
New Lending Pool for Mining Firms
According to Maple Finance officials, they have launched the lending pool specifically for the Bitcoin (BTC) mining firms. As per the development teams of the new lending pool, both the private and public Bitcoin mining companies will be able to benefit from the pool.
Maple Finance has successfully accumulated secured debt financing that is worth $300 million.
Conditions for Eligibility
The companies meeting certain criteria will be able to apply for funding from the new lending pool for Bitcoin. They will need to meet certain power strategies and treasury management standards all over the North American region to be able to apply for funding.
In addition to the North American region, the companies in the Australian region meeting the particular criteria would be able to apply as well.
Returns for Contributors
Maple Finance has also announced the return rate for the investors and the allocators of capital to the lending pool. For the contribution, the capital allocators and investors will be able to gain returns at low teen rates.
According to the inside information, the returns rate that the company has decided for now is 13%.
Eligibility Criteria for Investors
For those wanting to become part of the pool with investments, they will need to meet pre-designated net worth and substantial income qualifications.
If the investors meet certain criteria, they will be allowed to make investments and become contributors to the lending pool.
The officials have laid out the criteria to be more than $200,000, which is a pre-tax figure. If the investor has a spouse, then the pre-tax income must be more than $300,000.
If the income is lower than that, then the next criterion is the liquid net worth. Another criterion for the eligibility to participate as a capital provider in the lending pool is to have $1 million as liquid net worth.
Length for Borrowed Funds
According to the teams, the length of the loans would be set between 12 and 18 months. The interest rates that will be implemented on the loans would be all the way up to 20%.
The intellectual and physical assets will be secured by Maple Finance as collateral for the loans they acquire. The borrowers would also be able to submit Bitcoin mining rigs as collateral as they acquire the loans.
As of now, Maple Finance is responsible for holding and managing 50% of the overall lending pools for cryptocurrencies on an institutional scale.