Nexo Booster – Explained
In this article:
- Main features of the Nexo Booster
- How does the Nexo Booster work
- What are the fees
- How can I access the Nexo Booster
- How can I repay the crypto credit received through the Nexo Booster
- FAQ
- Important notes
The Nexo Booster allows you to enhance your portfolio without allocating additional capital.
It works by using your existing crypto holdings and allowing you to borrow additional funds to grow your position in a certain asset.
In other words, you have the opportunity to magnify your crypto exposure with the help of a crypto credit.
1. Main features of the Nexo Booster
-
Magnification: Get between 1.5 and 3x increase of exposure to the price movement of the asset of your choice.
-
Full collateralization: The maximum permitted LTV of the Booster transaction is 70%, following Nexo’s collateralization policy for crypto credits.
-
Minimum per transaction: 10 USDx* worth of the Pay With asset.
-
Maximum per transaction: 250,000 USDx.
-
Maximum number of transactions: Unlimited.
-
Crypto cashback: Depending on your portfolio balance and Loyalty tier**, you can earn between 0.1% and 0.5% crypto cashback on eligible Booster transactions.
- Risk management: You can confidently set Take profit and Stop loss orders for select Booster pairs. Learn more here.
-
Availability: The feature is available both on the web and mobile versions of the platform.
-
Variety of supported currencies: You can use crypto, stablecoins, EURx, GBPx, and USDx as the Pay With currency.
* If your Credit Line Wallet LTV is above 70% before using the Nexo Booster, the minimum Booster amount may exceed 10 USDx. The exact minimum will be displayed on screen. This threshold is designed to keep your Credit Line Wallet LTV around 70% after the Booster is applied.
** You must maintain a portfolio balance of at least $5,000 in value to access the benefits offered by our Loyalty Program, including crypto cashback with the Nexo Booster.
Notes:
- Only crypto can be used as the Receive currency. The Booster is unavailable for some assets, including the NEXO Token. Check the Booster section of your account to confirm if a pair is supported.
- Some Booster pairs may involve two exchange transactions because they require an intermediary asset, such as BTC or USDT, for the exchange.
2. How does the Nexo Booster work
When you use the Nexo Booster, you receive a crypto credit. The borrowed amount and your existing holdings (the Pay With asset) are converted to the crypto asset of your choice (the Receive asset).
Then, the total amount you have acquired is moved to the Credit Line Wallet and used as collateral for the crypto credit you received, making it fully collateralized.
In other words, Nexo uses your existing crypto holdings plus the newly acquired funds as collateral to give you a bigger crypto-backed credit line for the aforementioned acquisition.
For detailed examples of how you can use the Nexo Booster, visit this article.
Disclaimer: You understand and agree to use the Nexo Booster at your own risk. The Nexo Booster can amplify your gains (if the acquired asset appreciates) or magnify the losses (if the value of the acquired asset drops).
You must have a thorough understanding of the Loan-to-Value ratio and the automatic loan repayment mechanism before engaging with this service. Carefully consider if this product is suitable for you based on your individual circumstances and resources.
Do not use the Nexo Booster without a proper understanding of its mechanism and risks.
3. What are the fees
Fees for the Nexo Booster are applied to the borrowed amount and factored into your outstanding credit line balance.
There are three different fee tiers determined by the LTV of your Credit Line Wallet after the Booster transaction. The fee to be charged will be included in the Borrowed funds amount in the After Purchase section, which you can check before finalizing your booster transaction.
The fees are as follows:
- < 50% LTV: 1%
- 50-60% LTV: 2%
- > 60% LTV: 3%
You can find examples of Nexo Booster loans and how the fee is calculated in this article.
4. How can I access the Nexo Booster
The Nexo Booster can be accessed through the Exchange section on both the web version of the platform and the mobile app.
For a step-by-step guide, visit this article.
5. How can I repay the crypto credit received through the Nexo Booster
You can repay your loan at any time using any supported repayment option.
Keep in mind that Nexo Booster loans repaid in less than 45 days are charged interest for the remainder of the 45-day period at the standard annual interest rate of 18.9%, regardless of your Loyalty Tier.
This information is also available on the Credit Line Repayment screen, as seen below:
Tip: If the asset you have purchased through the Nexo Booster increases in value, you can use the available credit line to repay your outstanding credit.
6. FAQ
-
Can I get a loan to buy more Bitcoin or other crypto?
-
A: Yes. While we don’t offer personal loans in the traditional sense, you can use the Nexo Booster to obtain funds instantly and purchase crypto like Bitcoin on credit. The borrowed amount is backed by your existing assets, and the process is fully automated within the app.
-
-
Q: Which assets can I use with the Nexo Booster?
-
A: You can use supported crypto assets both as collateral and as the asset you want to purchase. Availability depends on market conditions and asset eligibility on the Nexo platform.
-
-
Q: Is there a risk involved when using the Nexo Booster?
-
A: Yes. As indicated in the disclaimer above (hyperlink), the Nexo Booster can amplify both gains and losses. If the value of your acquired asset drops, your Loan-to-Value (LTV) ratio may rise, triggering automatic loan repayments. Make sure you understand how LTV and the repayment mechanism work before using this feature.
-
-
Q: Can I use Booster multiple times?
- A: Yes. As long as your available collateral and LTV allow it, you can use the Booster feature multiple times.
7. Important notes
- Currently excluded from Nexo’s Nexo Booster product per the Nexo Earn Interest Product General Terms and Conditions and the Nexo Exchange Service General Terms and Conditions, as amended on occasion, are citizens or residents of Bulgaria, the United States of America, Canada, and Australia, as well as of other jurisdictions subject to certain limitations or restrictions as may be applicable at times.
- Setting Take profit and Stop loss orders for Booster pairs is unavailable to residents of the United Kingdom.
- The interest applied to loans is compound, i.e., it is calculated on both the initial principal and the accumulated interest.
Nexo Booster Explained
With its intuitive functionality, the Nexo Booster allows you to amplify the purchasing power of your current holdings and boost your exposure to crypto without allocating additional capital.
The feature requires Identity Verification and can be accessed both within the Nexo mobile application and the browser version of the platform. It works by using your existing crypto holdings and allowing you to borrow additional funds to grow your position in a certain asset. That is right, we give you credit that you can instantly use to acquire more crypto assets through a single leverage transaction.
Below are the key points that best describe the Nexo Booster:
- Leverage: Get between 1.25 and 3x leverage on your portfolio.
- Fully Collateralized: A permitted LTV of the transaction with up to 70% gives you the security that Nexo never lends on an uncollateralized basis.
- A variety of currencies that you can find in the Nexo Booster tab* **
- $250K Maximum per transaction. You can make as many booster transactions as you want.
- Cashback: Get up to 0.5% cashback on the booster transaction.
* The NEXO Token is excluded from the Nexo Booster, you cannot pay with or boost NEXO.
** You can use crypto, Stablecoins, and EURx, GBPx, and USDx for the “Pay With” currency in the Nexo Booster, but keep in mind that you will NOT be able to select EURx, GBPx, USDx or stablecoins for your “Receive” currency.
|
Tip: Once an asset you’ve purchased with the Nexo Booster increases in value, you can use the ‘new available credit line’ to repay your outstanding credit. |
Are Booster Transactions 100% Collateralized?
Yes! Leverage via the Nexo Booster works by collateralizing your existing holdings for an initial part of the loan. Naturally, that isn’t enough collateral for the rest of a 3x leverage transaction. As collateral for the rest of your loan, Nexo immediately collateralized the assets you are acquiring through your booster transaction, making your credit fully collateralized.
In effect, Nexo uses your existing crypto holdings plus the newly-acquired asset as collateral to give you a bigger crypto-backed credit line to finance the aforementioned acquisition.
What Are the Fees?
Fees for the Nexo Booster are factored into your outstanding credit line balance. There are three different fee tiers that are determined by your LTV. The fee to be charged will be included in the “Borrowed funds” amount in the “After Purchase” section which you can check before finalizing your booster transaction.
The fees are as follows:
- < 50% LTV: 1%
- 50-60% LTV: 2%
- 60-70% LTV: 3%
Upgraded Exchange Interface & The Booster
Since the Nexo Booster lives in the Exchange section of the Nexo App, our team took this as an opportunity to tie up a few loose ends on that front and give you a more intuitive experience. In relation to this, we are integrating the following change:
Instead of the Buy, Sell, and Swap tabs of the Exchange section, you will see only two tabs: Convert and Booster. The Convert Tab encompasses all three of the former options – this is where you would go to buy, sell or swap assets. The Booster option in turn is naturally where you would tap if you’re looking for a leverage transaction.
Important: Please note that Nexo Booster loans repaid in less than 30 days are charged interest for the remainder of the 30-day period at the standard APR of 13.9% regardless of your loyalty tier. This is in order to prevent improper use of the Nexo Platform and to safeguard Nexo as a company, but more importantly, our clients and investors.
This information is also available on the Credit Line Repayment screen as seen in the sample screenshot below:
Disclaimer 1: Currently excluded from Nexo’s Nexo Booster product per the Nexo Earn Interest Product General Terms and Conditions and the Nexo Exchange Service General Terms and Conditions, as amended on occasion are citizens or residents of Bulgaria, Estonia, the United States of America, Canada and Australia, as well as of other jurisdictions subject to certain limitations or restrictions as may be applicable at times.
Disclaimer 2: You understand and agree that you use the Nexo Booster at your own risk. Needless to say, as a leverage trading product, the Nexo Booster can work in both ways – it amplifies your gains when the chosen asset appreciates, yet magnifies the losses when prices are falling. In order to make an educated decision, you need to have a thorough understanding of how the Loan-to-value ratio and price-based margin calls and liquidations work. You should, therefore, carefully consider whether such use is suitable for you in light of your circumstances and financial resources. If you are uncertain, please seek independent legal advice.