Hodlnaut FAQs

Interest accounts for defi products and digital currencies can be complex to understand so we answer your most frequently asked questions.
What does Hodlnaut mean?

Hodlnaut is a combination of HODL and Astronaut! Hodl is common slang in the cryptocurrency community, where it depicts an act of holding the cryptocurrency rather than selling it.

Who are we?

Hodlnaut is a platform that provides financial services for individual investors where they earn interest on their cryptocurrencies by lending it to corporate borrowers, who would otherwise struggle to access crypto loans. Two entrepreneurs started Hodlnaut out of Singapore in March 2019. As Bitcoin Hodl-ers, we wanted to build a product that helps Hodl-ers earn sustainable interest.

How can we afford to pay the interest?

We lend out the assets we receive to established and vetted financial institutions that pay an interest rate. As for the attractive interest rates, we analyze supply and demand on our available crypto assets to set a fluctuating interest rate that adjusts as market conditions change. Also, we take earnings from our previous months into consideration.

How does Hodlnaut make money?

Hodlnaut takes a small portion of the interest earned from lending and passes the rest on to our users. We also lend out the assets to decentralized protocols and earn interest from there.

Why do people borrow from Hodlnaut?

The partners who borrow from us mostly use it as a hedge against the Bitcoin prices or market-making on their platform/exchange. Some of our partners also approach us for liquidity. Their needs mostly depend on their business functions.

What currencies do you support?

We are currently accepting deposits in BTC, DAI, ETH, USDC and USDT.

Does Hodlnaut have any regulatory license?

Hodlnaut Pte Ltd is based in Singapore and ruled under Singapore Law, which introduced the Payment Services Act on the 28th of January 2020, which covers cryptocurrencies classified as "digital payment tokens." Our token swap service offered by Hodlnaut Pte Ltd is the only regulated activity under the Payment Services Act.

Is there a Hodlnaut affiliate program?

Yes, we do! You can invite your friend to Hodlnaut by sharing your referral link and earn 10% of your friend's interest. Please note that you're eligible to participate in our affiliate program only after passing our account verification (KYC) process.

How best to contact Hodlnaut?

If you're facing technical difficulties or have any other queries and concerns, please email us at support@hodlnaut.com, and we'll get back to you as soon as possible.

How do corporate crypto loans work?

Because they are generally structured in more complex ways depending on the lender, the terms and conditions may differ. Please contact us at support@hodlnaut.com with a brief description of your company and what you're looking to borrow.

Do you offer loans to individuals?

We currently offer loans to corporates or institutions only and not to individuals.

Can I buy or sell crypto with Hodlnaut?

No, we don't support the buying and selling of any crypto in our platform.

Are there any country restrictions?

Hodlnaut is committed to comply with Sanction Laws imposed by Sanction Authority, for more information please refer to our Terms & Conditions

Do you comply with sanctions laws?

Hodlnaut is not available where prohibited by Hodlnaut Policy or Sanctions Laws as updated from time to time. Currently, such places include the countries of Iran, North Korea, Sudan, South Sudan, Syria, Cuba or any other country specified by the Sanction Authority, for more information please refer to our Terms & Conditions

Do you have a mobile app?

We are currently building our iOS app that would be available in the third quarter of 2021. Currently, we are available as a web application accessible using any internet browser, and our platform is mobile-optimised.

How do I create an account?

After signing up at https://app.hodlnaut.com/signup you will need to complete and pass our account verification (KYC) process before you can start depositing.

How do I earn interest on Bitcoin?

Simply make a deposit of any amount into your account and you will start earning interest immediately! Interest is paid out every Monday, 5 PM (GMT +8).

Are there any crypto interest limits?

There are no limitations; you can deposit any amount, and all balances earn interest.

Are there any fees?

We only charge a small withdrawal fee to cover network fees, and there are no other hidden charges.

Do you support deposits of ETH from smart contract addresses?

Yes, we support both sending and receiving from smart contract addresses.

Are there any lock in periods?

No, you don't have to lock in your funds to earn interest, and you can request a withdrawal at any time.

Is KYC mandatory for an interest account?

Yes, all accounts have to go through and pass the KYC verification process to earn interest.

How do I deposit?

Once you have logged in to your account, click on the "Deposit/Withdrawal" tab. Select the correct asset you would like to deposit and you will see your unique wallet address. Send any amount of coins from any wallet to your Hodlnaut address, and you will start earning interest automatically after it is confirmed on the network.

I just deposited some crypto, why isn't it showing on my statement?

If you deposit after 5 PM (GMT +8), then it will take some time to show. The statement will be updated after 5 PM the next day.

Can I deposit fiat currencies in my account?

No, we only accept crypto deposits. Currently, we have decided not to pursue the option to allow users to deposit fiat currency due to uncertainty in regulatory requirements.

When and how can I withdraw funds?

You can withdraw at any time. To withdraw, you will need to enable two-factor authentication (2FA), and you will be sent an email to confirm your withdrawal. We charge a small withdrawal fee that's visible from the withdrawal page. We process withdrawals instantly, but it might occasionally take longer depending on the size of withdrawal.

Is there a withdrawal limit?

For accounts that have done a KYC process, the maximum withdrawal limit is denominated to 100 BTC per day.

Are there any prohibited uses of accounts?

Hodlnaut reserve the right to decline incoming assets from the following known addresses: 1. Mixing, 2. Peer-to-peer and other high risk exchanges that do not perform stringent KYC, 3. Gambling sites, 4. Darknet marketplaces

I have completed KYC. Why have I not been verified yet?

Thanks for signing up for an account with us! We're so excited to have you on board. KYC verification typically takes up to 1 - 2 business days to be completed by our compliance team. We seek your kind patience and understanding and we will get back to you on your application soonest possible. Should you not hear from our compliance team after 2 business days, you can drop us an email at support@hodlnaut.com.

What happens to my account and assets if I pass away?

Hodlnaut will adhere to the applicable probate laws of Singapore. We recommend consulting with your personal advisors / lawyers to plan for the succession of your estate in case of your demise.

What currency is interest paid in?

Interest is earned and paid out in-kind (in other words, in the same cryptocurrency that you have placed in Hodlnaut).

What are the current interest rates?

The current interest rate for all our assets can be found on our website, and once you have logged into the platform.

What interest rate am I earning?

All Hodlnaut accounts automatically get the highest rate possible. The current interest rate is shown on our website, and once you have logged into the platform.

How is my Bitcoin interest calculated?

We take a snapshot of your balance every day and calculate how much interest has been earned for that day.

How is interest paid?

Interest earned is deposited directly into your Hodlnaut account. The interest is accrued at the end of every day, and is credited to your account every Monday, 5PM (GMT +8).

When will my interest account start earning interest?

Interest is earned immediately after being deposited into your Hodlnaut account.

How do you determine market interest rates?

Interest rates are evaluated based on market demand and our earnings from the previous month. While Hodlnaut aims to keep interest rate stable, it is subject to change.

Will interest rates change and how often?

Our interest rates will be updated monthly based on the prevailing market conditions.

Where are my funds stored?

We use Fireblocks' multi-party computation wallet infrastructure to secure funds. When users sign up for an account with Hodlnaut, they will be assigned a unique address generated by Fireblocks. When the deposit funds into Hodlnaut, funds are secured with Fireblocks' wallet infrastructure until it is lent out to one of our partners.

Are you insured against hacks?

Hodlnaut users can get insurance cover for up to US $44 Million of their funds through Nexus Mutual’s Hodlnaut Custody Cover smart contract at a 2.6% premium.

Why should I trust you with my assets?

As with any investment, we recommend all prospective users to form their own opinion when it comes to investing. Feel free to look through our demo platform and FAQs section. If you have further questions or concerns, you may reach us at support@hodlnaut.com.

What measures have you taken to prevent loss of funds?

We have incredibly stringent capital requirements of our counterparties. In any case, we are very selective with whom we lend out to. We only lend to corporate entities with good credit scores, and the Loan-to-Value (LTV) Ratio of our loans is usually 70% or lower. For this reason, the risk of a default is very low. Like most of the DeFi products out there, we lend out to more than one counterparty to reduce counterparty risk.

What happens if one of your borrowers defaults?

In the very unlikely event that the borrower defaults and fails to return the borrowed asset, we may liquidate the borrower’s collateral and repurchase the borrowed funds. We also have a robust legal contract in place with each of our borrowers, and may take legal action to recover the funds if necessary. Furthermore, in an event a default happens, Hodlnaut will be taking on the loss and paying our users from our equity funds.

Is my crypto held in a custodial or non-custodial wallet?

When funds are first deposited with Hodlnaut, they are received through the Fireblocks wallet infrastructure. On the backend, Hodlnaut will then access the funds and either transfer them to self-custody cold wallets or on-lend the funds to borrowers.

Do you use hot wallets?

At Hodlnaut we have taken a security-first approach, and we have no hot wallets.

My 2FA does not work. What should I do?

You can use Google Authenticator or Authy, or any other authentication app that you prefer. If your Google Authenticator codes are not working, this might be because the time on your Google Authenticator app is not synced correctly. There are several ways in which you can fix this. If you are using Android: 1. Go to the main menu on the Google Authenticator app. 2. Tap More and then Settings. 3. Tap Time correction for codes. 4. Tap Sync now. On the next screen, the app will confirm that the time has been synced, and you should now be able to use your verification codes to sign in. The sync will only affect the internal time of your Google Authenticator app, and will not change your device’s Date & Time settings. If you are using iOS or if the above did not work for your Android phone: 1. Remove the existing Hodlnaut 2FA account. 2. Set up 2FA again.

I'm not receiving OTPs. What should I do?

Please ensure the following when keying in your phone number: 1. Ensure that country of residency and phone number matches. 2. Avoid using auto-fill. 3. Remove any spaces, periods and dashes. 4. Do not copy and paste your phone number into the fields directly. 5. Do not enter your country code when keying in your phone number. The country codes are automatically generated according to your country of residence. You will only be able to register a phone number from your country of residence. Should you continue to face issues with receiving an OTP, please reach out to us at support@hodlnaut.com and we would be happy to help!

Why is my phone number "invalid"?

Please ensure the following when keying in your phone number: 1. Ensure that country of residency and phone number matches. 2. Avoid using auto-fill. 3. Remove any spaces, periods and dashes4. Do not copy and paste your phone number into the fields directly. 5. Do not enter your country code when keying in your phone number. The country codes are automatically generated according to your country of residence. You will only be able to register a phone number from your country of residence. Should you continue to face issues with getting your number verified, please reach out to us at support@hodlnaut.com and we would be happy to help!

How to reset 2FA?

Please contact us at support@hodlnaut.com for this request to be processed. You will have to complete an identity verification process before we reset your 2FA.

How to change phone number?

Please contact us at support@hodlnaut.com for this request to be processed. You will have to complete an identity verification process before we change your registered phone number.

Is the platform secure?

The platform runs on a secure cloud infrastructure on AWS, and all traffic is encrypted with SSL encryption.

Is my account secure?

We encrypt and anonymous as much data as possible on our servers. We use industry-standard algorithms for password hashing and procedures. We also encourage all users to activate two-factor authentication.