1. Welcome
Welcome to the Wirex Crypto Credit Terms of Service!
These Crypto Credit Terms of Service together with the Wirex General Terms of Service, Crypto-Assets Terms of Service and any other referenced documents (collectively the “Crypto Credit Terms”) govern your use of crypto-assets credit facilities granted by Wirex and form the legal agreement between:
You, as the Wirex client; and
The Wirex company that provides you with access to the Wirex Service and your Wirex Profile is identified in the respective Wirex Crypto-Assets Terms of Service ("Wirex", or "we", "our", or "us").
2. Wirex Crypto Credit
By accepting these Crypto Credit Terms, you request, and Wirex may grant, a principal-to-principal credit facility in a selected crypto-asset, subject to the interest rate displayed on the Wirex Platform (“Interest”), provided that you transfer the required collateral (“Collateral”) to secure the facility line (“Wirex Credit”).
All eligible crypto-assets are listed on the Wirex Platform and are subject to change at any time.
You may open up to five active Wirex Credit lines at any given time. The total principal amount available under all active Wirex Credit lines shall not exceed the equivalent of AUD 100,000 in crypto-assets.
At the time of your Wirex Credit request, the applicable Loan-to-Value (“LTV”) ratio may range between 40% and 75%, based on your selection from the available options shown on the Wirex Platform. The threshold limits for specific crypto-assets can be found here (“LTV Threshold”) and are subject to change without notice.
Please note that the terms of Wirex Credit, including but not limited to eligible crypto-assets, interest rate, collateral, the LTV ratio may vary. The specific terms applicable to Crypto Credit will be clearly displayed on Wirex Platform. It is important to review these details before proceeding with the request for Crypto Credit.
Once you have obtained the Wirex Credit you have a right to extend this credit line within maximum LTV Threshold. We may, acting reasonably and in good faith and subject to any Non-Excludable Rights (as defined below): (i) refuse your request for the granting of Wirex Credit; (ii) suspend the provision of Wirex Credit or any part of the Wirex Services; or (iii) modify, update, remove, cancel, suspend, disable, or discontinue any features, components, content, or incentives related to Wirex Credit where we reasonably consider it necessary or appropriate, including for risk management, regulatory, legal or operational reasons.
Subject to any Non-Excludable Rights, we will not be responsible for losses you suffer solely as a result of a lawful suspension or modification of Wirex Credit carried out in good faith and in accordance with these Crypto Credit Terms.
3. Interest
A compound annual Interest shall commence accruing on the outstanding principal amount of the Wirex Credit from the start date of the Wirex Credit (“Start Date”), at the rate determined at the time of requesting Wirex Credit and shown on the Wirex Platform. The Interest applicable to any Wirex Credit not yet confirmed by Wirex may be revised from time to time at our discretion, subject to applicable law.
The Interest shall be calculated on a daily basis, at UTC 00:00 on each calendar day and will be displayed on Wirex Platform.
No periodic repayment of the Interest shall be due unless the entire Wirex Credit is due or terminated.
4. Term of Wirex Credit
Wirex Credit shall be granted for a 6-month term starting from the Start Date (“Maturity Date”) unless otherwise terminated prior to the Maturity Date in accordance with these Terms.
In the event of termination or closure of your Wirex Account or your use of the Wirex Service, Wirex reserves the right to terminate the Wirex Credit line without providing you with written notice and Liquidate the Total Amount.
5. Collateral
Wirex will grant you a Wirex Credit in crypto-assets, provided that you transfer the required Collateral to Wirex. Certain assets may be delisted or become unavailable for use as collateral without prior notice.
The value of the Wirex Credit shall be calculated by the LTV ratio, as indicated on the Wirex Platform and subject to revision from time to time, against the value of the Collateral at the time of granting. The value of the Collateral shall be dynamically calculated by Wirex, on the basis of margin percentages applied to the market value of the Collateral, according to an exchange ratio equivalent to the volume-weighted average price of the relevant crypto-assets across leading cryptocurrency exchanges.
You shall at all times ensure that the value of Collateral transferred to Wirex satisfies the applicable LTV ratio.
Upon transfer, Wirex acquires the ownership title and all attendant rights of ownership of the Collateral for the duration of Wirex Credit while the Wirex Credit is outstanding and may deal with this Collateral as beneficial owner for its own account, acting reasonably and in good faith and subject to these Crypto Credit Terms. You acknowledge and agree that we may convert, pledge, re-pledge, hypothecate, rehypothecate, sell, lend, or otherwise transfer, dispose of or use any amount of such Collateral, separately or together with other property, and for any period of time, without retaining in our possession or control a like amount of that Collateral or any other assets.
Any such action will be performed in our name only, and you will not be entitled to any income or other benefits arising from our use of the Collateral, except as expressly provided in these Crypto Credit Terms. The Collateral forms part of Wirex’s assets and you will hold an unsecured contractual claim against Wirex for return of equivalent crypto-assets upon repayment of the Wirex Credit. In the event of Wirex’s insolvency, you will rank as an unsecured creditor, subject to applicable law.
6. Margin Calls and Liquidation
If the LTV increases to a level up to 5% below the maximum allowed LTV Threshold as indicated on the Wirex Platform and the value of your Collateral is no longer deemed sufficient to support your Wirex Credit (“Margin Call”), you shall promptly provide additional Collateral to restore the required LTV ratio. If you are unable to satisfy the Margin Call or if the LTV ratio exceeds the maximum permitted LTV Threshold (“LTV Liquidation Trigger”), Wirex may terminate your Wirex Credit and liquidate some or all of your Collateral (“Liquidation”) in order to repay the Total Amount and any reasonable costs and expenses incurred in connection with the Liquidation (together, the Liquidation Amount). Any proceeds from the Liquidation will
be applied in accordance with section 8 (Default and Indemnification). We will endeavour, where reasonably practicable, to notify you of a Margin Call or an impending Liquidation. However, you acknowledge that due to the volatile nature of the crypto-asset market, it may not always be technically feasible for Wirex to notify you in advance of a Liquidation event, and in such circumstances, Liquidation may occur without prior notice. You remain solely responsible for monitoring market conditions and ensuring that your LTV ratio remains within the limits set out in these Crypto Credit Terms at all times.
7. Early Repayment, Repayment and Withdrawal
The total amount due for the repayment of your Wirex Credit includes the principal amount, any accrued Interest (“Total Amount”).
The full repayment of each Wirex Credit Total Amount must occur on or before the Maturity Date. Failure to repay Total Amount by the Maturity Date will result in a Liquidation.
Additionally, you have the right to make a full repayment of the Wirex Credit at any time before the Maturity Date and prior to the occurrence of the Liquidation. Repayment can be made in one of the following ways:
(i) repay the amount of the Wirex Credit by using functionalities of Wirex Platform;
(ii) with the Collateral.
All repayments shall be allocated first to the Interest and last to the principal of the Wirex Credit.
You are required to ensure that your LTV ratio remains within the permitted range at all times. You must make timely repayments to prevent exceeding the LTV Threshold. Failure to maintain the LTV ratio in compliance with these Crypto Credit Terms may result in Liquidation or other remedial actions by Wirex.
8. Default and Indemnification
Nothing in these Crypto Credit Terms excludes, restricts or modifies any rights, remedies or guarantees you may have under the Australian Consumer Law, the Australian Securities and Investments Commission Act 2001 (Cth), or, for New Zealand residents, the Consumer Guarantees Act 1993 and the Fair Trading Act 1986, to the extent that those rights, remedies or guarantees cannot be excluded or limited (“Non-Excludable Rights”).
The occurrence of any of the following events shall constitute an Event of Default, which for the purposes of these Crypto Credit Terms will include any of the following events,:
1) You breach of the following of terms, condition, or obligation under these Crypto Credit Terms 5 (Collateral), 6 (Margin Calls and Liquidation) and 7 (Early Repayment, Repayment and Withdrawal);
2) It becomes or remains illegal for you to perform any of your obligations under this Agreement;
3) You fail to make any payment of Total Amount due by the Maturity Date;
4) You fail to provide or maintain sufficient Collateral as required under these Crypto Credit Terms;
5) You exceed the LTV Threshold as stipulated in these Crypto Credit Terms;
6) You become insolvent or are otherwise unable to pay your debts as they come due;
7) You perform any fraudulent activities, misrepresentation, or any violation of applicable laws in relation to the subject of these Crypto Credit Terms;
8) You breach the provisions of the Terms of Service accepted with Wirex under which Wirex can terminate them.
In the Event of a Default, we may, within the limits provided by law and subject to any Non-Excludable Rights, and without prejudice to our right to claim any further damages we suffer, take one or more of the following actions::
1) Declare the full outstanding Total Amount of any liability under this agreement immediately due and payable.
2) Liquidate any Collateral provided by you in accordance with the section 6 of these Crypto Credit Terms to cover any amounts due. Any proceeds from the liquidation of your Collateral that exceed the Total Amount due to Wirex will not be returned to you and will remain the property of Wirex within the limits of the damages suffered by Wirex.
3) Suspend or terminate your access to Wirex Credit under these Crypto Credit Terms, including your Wirex Account and any Wirex Services or Wirex Products.
4) Pursue any available legal remedies to recover outstanding amounts, including engaging in collection actions or legal proceedings.
In the Event of a Default, we will promptly notify you of the occurrence of the Default and the actions we are taking in response, with such actions taking effect immediately.
Notwithstanding anything to the contrary in this agreement, Wirex’s liability in the Event of your Default is limited to Total Amount you owe under these Crypto Credit Terms. Wirex will not be liable for any indirect, incidental, or consequential damages, including lost profits, arising from your default or breach of these Crypto Credit Terms.
The limitations of liability to the benefit of Wirex provided herein are not applicable in case of its gross negligence and wilful misconduct and in any case they apply within the limits of applicable laws, including consumer protection laws.
9. Amendments to these Crypto Credit Terms
We reserve the right to amend these Crypto Credit Terms at any time for just case with a 15 calendar days prior notice to you. By continuing to use Crypto Credit after the termination of the notice period, you agree to be bound by any such amendments.
10. Miscellaneous
These Crypto Credit Terms shall be governed and interpreted in accordance with the laws specified in the Crypto Assets Terms of Service you have accepted.
Unless stated otherwise in these Crypto Credit Terms, if any provision is found to be invalid or unenforceable by a court or competent authority, such provision shall be deemed modified or, if necessary, struck out to the extent required, and the remainder of these Crypto Credit Terms shall remain in full force and effect.
The failure or delay by Wirex in exercising any right or enforcing any provision of these Crypto Credit Terms shall not be deemed a waiver of such right or provision. Any waiver must be made in writing to be effective. All rights and remedies under these Crypto Credit Terms are cumulative and not exclusive of any rights or remedies provided by law.
You may not assign or transfer any of your rights or obligations under these Crypto Credit Terms without our prior written consent. Wirex may assign or transfer its rights or obligations under these Crypto Credit at any time without notice. No third party shall have any rights to enforce any part of these Terms.
Any dispute arising from or in connection with these Terms shall be subject to the governing law and courts specified in the Crypto Assets Terms of Service you have accepted, without prejudice to any rights the user may have under the laws of their country of residence or domicile, including the right to bring a claim before the courts of that country. Nothing in these Terms shall affect the user’s statutory rights as a consumer under the laws of their country.
By accepting these Crypto Credit Terms, you confirm that you have read and understood the following sections: 5 (Collateral), 6 (Margin Calls and Liquidation), 8 (Default and
Indemnification), 9 (Amendments to these Crypto Credit Terms) and 10 (Miscellaneous). These Terms are standard form contracts under Australian law and are subject to the protections against unfair contract terms in the Competition and Consumer Act 2010 (Cth), including the Australian Consumer Law, and the Australian Securities and Investments Commission Act 2001 (Cth), as applicable.