BoneX Loans is a financial service provided by INVICTUS SOFTWARE CORP - FZCO, a company registered under License Number 28522, with its principal office located at Building A1, Dubai Digital Park, Dubai Silicon Oasis, Dubai, United Arab Emirates. The company operates under the regulatory framework of the UAE and ensures compliance with all applicable laws and financial guidelines.

1. Introduction 

BoneX Loans offers a BTC Borrowing Program, allowing clients to gain exposure to Bitcoin by securing a loan of up to 70% of the value of their BTC collateral (70% LTV). Financing is available for a period ranging from 1 to 12 months, with interest rates adjusted according to the selected duration. The BTC collateral remains under custody until full repayment of the loan.

By entering this agreement, clients accept these Terms and Conditions, which define their rights, obligations, and the risk management framework associated with BTC-backed lending.

2. BoneX Loans

2.1 Eligibility

BoneX Loans is available to individuals and entities who meet the required criteria for borrowing, including but not limited to high-net-worth individuals, professional traders, and institutional clients.

2.2 Loan Structure

- Collateral: Loan requests must be backed by BTC collateral.
- Loan Amount: Clients may borrow up to 70% of the value of their BTC in USDC (70% LTV).
- Repayment Terms: Loan repayment terms range from 1 to 12 months with fixed monthly installments.
- Collateral Custody: BTC collateral will remain in BoneX's custody until the loan is fully repaid.

2.3 Loan Request Process

- Loan Request: When a loan is requested, the user must review, sign the loan agreement, and make the required payment within 4 hours of the request.
- Expiration: If the contract is not signed and payment is not made within 4 hours, the loan request will be considered invalid, and the collateral will be released.

2.4 Interest Rates

The annual interest rate on BoneX Loans starts at 3.4%.
Interest is calculated on a daily basis and added to the principal.
The final rate is determined based on the selected loan term (1–12 months).

BoneX Loans reserves the right, at its sole discretion, to modify the applicable interest rate or apply additional charges to the outstanding loan balance based on prevailing economic, regulatory, or market conditions, including but not limited to inflation, monetary policy shifts, or geopolitical events.
By accepting these Terms and Conditions, clients acknowledge and agree that such adjustments may occur at any time during the loan term, without the need for prior consent. Clients will be notified accordingly, and the updated terms shall be deemed accepted upon continued use of the service.

2.5 Liquidation

- Liquidation Trigger: Your loan may be liquidated if the value of your collateral falls below the required threshold, determined by the loan-to-value ratio (LTV).
- Avoiding Liquidation: When the BTC price approaches the liquidation threshold, clients may deposit additional collateral. The minimum amount required is 10% of the original BTC collateral value. Once added, the system will automatically recalculate and update the liquidation price, providing increased protection from forced liquidation.
- Liquidation Process: BoneX will liquidate your collateral to repay the loan if the collateral value decreases and reaches the liquidation point defined by your original loan amount.

2.6 Fees

- Late Payment Fees: If payments are not made on time, a late fee will be charged or your loan can be terminated.
- Early Repayment: No penalties apply for early repayment. However, clients are required to pay all remaining interest for the originally agreed term upon early settlement.

2.7 Security

All BTC collateral is stored in Fireblocks wallets, a highly secure storage solution trusted by leading financial institutions.

2.8 Client Responsibilities

- Collateral Maintenance: It is your responsibility to ensure that your collateral is sufficient to cover the loan, including interest, throughout the loan term.
- Communication: You must provide accurate contact information and promptly respond to any communications from BoneX related to your loan.

2.9 Loan Default

Failure to repay the loan as agreed will result in the liquidation of collateral.
In the event of loan default, BoneX reserves the right to initiate legal proceedings and pursue recovery of the outstanding loan balance.

2.10 Governing Law

These Terms and Conditions are governed by the laws of the jurisdiction in which BoneX operates, and any disputes will be handled in the courts of that jurisdiction.

2.11 Amendments

BoneX reserves the right to amend these Terms and Conditions at any time. Any changes will be communicated to you and will take effect immediately upon posting on the website or through direct notification.

3. BTC Collateral Value – Market Effects

3.1 In case of BTC price appreciation during the loan period, the client does not gain access to the appreciated value unless the loan is fully repaid.
3.2 The collateral remains locked in custody until the loan is repaid in full, regardless of market price increases.
3.3 Once the loan is fully settled, the BTC collateral is returned to the client in full, unless a liquidation event has occurred.

4. BTC Price Drops & Liquidation Threshold

4.1 Liquidation risk is triggered if the value of BTC collateral declines and the loan-to-value (LTV) ratio exceeds the permitted threshold.
4.2 Clients will receive real-time alerts when their loan approaches the liquidation threshold. To avoid liquidation, clients may add additional collateral.
4.3 The minimum additional collateral required is 10% of the initial BTC collateral value. Upon deposit, the system will automatically recalculate the new liquidation threshold, offering enhanced protection.
4.4 Failure to provide the required collateral in time may result in full or partial liquidation, and the client forfeits any liquidated amount.

5. Early Repayment & Termination Policy

5.1 Clients may choose to repay their outstanding loan balance in full at any time before the maturity date.
5.2 Partial prepayments are also allowed, reducing the remaining principal and total interest payable.
In the event of early repayment, the client is required to pay the remaining interest payments for the full loan term as initially agreed, regardless of the early settlement date.
5.3 Clients must submit an official request via the BoneX Loans platform for early repayment.
5.4 A settlement statement outlining the remaining balance, applicable fees, and final payment amount will be provided.
5.5 Upon confirmation of payment, the loan will be marked as fully settled, and the BTC collateral will be returned to the borrower.

6. Staking Terms and Conditions

BoneX offers its clients the opportunity to stake cryptocurrency assets ("Staking") to earn interest. The staking service includes two options: Locked Staking and Flexible Staking. Interest accrues daily and is credited daily from the next day after asset locking.

6.1 Locked Staking:

Locked Staking allows clients to stake their cryptocurrency assets for a fixed duration. Once assets are locked, they cannot be withdrawn or used until the predetermined staking period concludes.
Clients can access and withdraw accumulated interest periodically or at the end of the staking period, according to the specific terms provided at the commencement of the staking period.
Premature withdrawal or utilization of the staked assets before the expiration of the locked period is not permitted.

6.2 Flexible Staking:

Flexible Staking permits clients to stake their cryptocurrency assets for a set period but allows withdrawal before the end of this period.
If clients withdraw their staked assets prior to the staking maturity date, they will forfeit all accumulated interest on the withdrawn amount.
Interest is distributed only upon successful completion of the entire staking period.

6.3 Modifications and Adjustments:

BoneX reserves the right to modify interest rates and terms related to staking due to market conditions, inflation, regulatory requirements, or other global economic factors. All modifications will be communicated to clients through official BoneX communication channels.

Staking cryptocurrency involves market risks, including but not limited to price volatility, liquidity risks, and regulatory risks. Clients must fully understand and acknowledge these risks before participating in staking services provided by BoneX.
BoneX shall not be liable for any loss or reduction of staking rewards resulting from technical malfunctions, blockchain network congestion, downtime, or external hacking incidents beyond BoneX’s reasonable control.

Clients are solely responsible for reporting and payment of any applicable taxes arising from staking rewards, as per their local jurisdiction's tax laws.
BoneX reserves the right, at its sole discretion, to suspend or discontinue staking services at any time, providing prior notification to the Clients through official communication channels.

Clients are advised to carefully assess their risk tolerance and investment objectives before participating in BoneX staking services.
Clients participating in Staking services acknowledge additional risks, including liquidity constraints and forfeiture of interest in cases of early withdrawal (applicable to Flexible Staking).

BoneX reserves the right to update staking terms, conditions, and interest rates due to market, regulatory, and global economic factors.

7. Client Asset Custody

7.1 All client assets, including BTC collateral, are securely stored in Fireblocks, a leading institutional-grade custody provider.
7.2 Fireblocks is used by major financial institutions such as Revolut and other global fintech firms, ensuring the highest level of security and protection.
7.3 Assets held within Fireblocks are protected through multi-layer security protocols, including multi-party computation (MPC) technology and insurance-backed custody solutions.
7.4 BoneX Loans ensures that client assets remain safeguarded throughout the loan term, with no external access or risk of unauthorized withdrawals.

8. Anti-Money Laundering (AML) & Compliance

8.1 BoneX Loans strictly adheres to AML and Counter-Terrorist Financing (CTF) regulations, ensuring compliance with UAE and international financial laws.
8.2 All clients must undergo a Know Your Customer (KYC) process, including identity verification, proof of address, and source of funds declaration.
8.3 Enhanced Due Diligence (EDD) is required for high-risk individuals, including Politically Exposed Persons (PEPs) and customers from high-risk jurisdictions.
8.4 Transactions are actively monitored for suspicious activity, and any detected anomalies will be reported to UAE regulatory authorities and international enforcement agencies.
8.5 BoneX Loans prohibits any transactions involving individuals or entities listed on international sanction lists (OFAC, UN, EU, UAE, etc.).
8.6 Clients involved in fraud, money laundering, or illicit activities will have their accounts terminated, and BoneX Loans reserves the right to cooperate with authorities.
8.7 All transaction records, communications, and approvals will be maintained for a minimum of five (5) years for compliance and audit purposes.

9. Amendments & Legal Considerations

9.1 BoneX Loans reserves the right to amend these terms as necessary to comply with regulatory requirements and market conditions.
9.2 Any disputes arising from this agreement shall be resolved in accordance with applicable UAE financial laws.

10. Force Majeure & Market Events

BoneX Loans shall not be held liable for any delay, failure, or interruption in service due to events beyond its reasonable control, including but not limited to: natural disasters, regulatory changes, acts of war, economic collapse, market trading halts, power outages, network failures, or force majeure events.

BoneX reserves the right to temporarily suspend loan-related operations, including collateral management and liquidation processes, during periods of extreme market volatility or external disruption.
BoneX shall not be held liable for any indirect, incidental, or consequential losses arising from delayed liquidations or access restrictions during force majeure events.

Clients must promptly notify BoneX of technical issues or discrepancies related to loan or staking services. BoneX provides timely support, except during force majeure events.

11. Risk Disclosure

Borrowing against BTC collateral carries significant risks. These include, but are not limited to:
- Sudden and severe price volatility,
- Liquidation of your assets without prior approval if thresholds are breached,
- Loss of your BTC collateral in case of default,
- Changes in regulatory or tax policies affecting loan enforcement,
- Counterparty or custody risks, including third-party failure.

Clients are advised to consult a financial advisor and fully understand the risks before entering a loan agreement with BoneX.

12. Termination Rights & Compliance Holds

12.1 Termination by BoneX:
BoneX reserves the right to terminate any loan agreement by providing seven (7) calendar days’ written notice to the client. Upon such termination, the client must repay all outstanding principal and accrued interest in full before the expiry of the notice period.

12.2 AML/Sanctions Holds:
BoneX reserves the right to delay or withhold the release of BTC collateral if there are reasonable grounds to suspect the client or any associated transaction is linked to:
- Money laundering,
- Sanctioned individuals or entities,
- Fraudulent activity,

until the matter is fully investigated and cleared with relevant regulatory authorities.
Such investigations may take up to thirty (30) business days from the date of notification to the client. If the matter remains unresolved after this period, BoneX may escalate the issue to competent authorities and maintain the hold until a final resolution is reached.

13. Definitions and interpretation

In these Terms:

a. Loan-to-Value (LTV): The ratio between the loan amount and the collateral value.

b. Collateral: BTC assets pledged to secure the loan.

c. Liquidation Threshold: BTC price level at which BoneX initiates collateral liquidation.

d. Locked Staking: Staking cryptocurrency assets for a fixed duration, during which assets cannot be withdrawn or used.

e. Flexible Staking: Staking cryptocurrency assets with an option for early withdrawal, forfeiting accrued interest.

By participating in the BoneX.loans  Program, clients fully understand and accept these Terms & Conditions.

Last updated: April 10, 2025