POINTPAY

CRYPTOCURRENCY LOAN SERVICE AGREEMENT

Last update: 4th of January, 2021

PointPay Cryptocurrency Loan Service Agreement (the “Agreement”)

constitutes a part of the PointPay Terms and Conditions (hereinafter referred to
as the “Terms and Conditions”). It is a binding legal agreement between Point
Pay O , incorporated under the laws of Estonia with registration number
14408006, and located at: Harju maakond, Tallinn, Kesklinna linnaosa, Tuukri tn
19, 10120 (the “Company”) and you, a natural person, user of PoinPay website
and/ or mobile application (the “User” or “You”).

PLEASE READ THE AGREEMENT CAREFULLY BEFORE YOU START USING

CRYPTOCURRENCY LENDING MODULE IN POINTPAY ECOSYSTEM. IF YOU DO
NOT AGREE WITH ALL OR ANY THESE TERMS, PLEASE DO NOT USE
CRYPTOCURRENCY LOAN SERVICES IN POINTPAY ECOSYSTEM.

PLEASE ASSESS IF YOUR FINANCIAL SITUATION AND RISK TOLERANCE IS

SUITABLE FOR USING THE CRYPTOCURRENCY LOAN SERVICES. YOU SHOULD
ACCEPT ALL POSSIBLE RISKS CONNECTED WITH CRYPTOCURRENCY LOANS.

I. DEFINITIONS
1.1 The de initions used in the Terms and Conditions shall have the same
meaning as speci ied in the Terms and Conditions.
1.2 “Collateral” means the corresponding deposit that the User has in the
Account (in checking account in PointPay CryptoBank) and that the User leaves
as a guarantee that the loan will be repaid timely and according to the repayment
schedule.
1.3 “Interest” means the amount that the User pays to the Company for the
loan services.
1.4 “Loan” means the loan in cryptocurrency provided by the Company to
the User.
1.5 “Loan-to-value” means the ratio between the loan amount and collateral
amount.
1.6 “Services” means the cryptocurrency loan services provided by the
Company.

II. SCOPE OF SERVICES

2.1 The Company shall provide the User with solutions to hold and make use
of the Loan in speci ic cryptocurrencies and the User shall repay the Loan to the
Company in time in accordance with repayment schedule and to pay to the
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Company Interests.
2.2 The cryptocurrency of the Loan can be Bitcoin (BTC), Ethereum (ETH) or
Tether (USDT). The Company can add other cryptocurrencies later.
2.3 The daily Loan interest rate is 0.06%.
Holders of PointPay tokens (PXP) receive lower loan interest rates; actual
information about lower interest rates for holders of PointPay tokens (PXP) is
always displayed on the Website and can be changed by the Company at any time
with immediate noti ication to the User. However, if the User received the Loan
and then the discounted Interest rate changed, the previous discounted Interest
rate shall apply to that active Loan of the User. The new discounted Interest rate
shall apply to the new Loans. Discount is provided for the total amount of user’s
PXP tokens both on Checking or Savings accounts in PointPay Bank.
2.4 The Company requires the User to provide Collateral deposit to the
Company. If the Loan currency is Tether (USDT), the user can leave either Bitcoin
(BTC) or Ethereum (ETH) as collateral. If the loan currency is either Bitcoin
(BTC) or Ethereum (ETH), the user can leave collateral in Tether (USDT).
2.5 The User can take several loans at the same time, the number and
amount of loans available for the one user is not limited by the Company. The
User shall leave to the Company different Collaterals for every loan.
2.6 The User is responsible to check legal regulations of cryptocurrency
loans in the jurisdiction of the User’s citizenship and/or residence. The User shall
abide by relevant laws and regulations, and warrant and represent the legitimacy
and compliance of the source of the Collateral.

III. REQUEST FOR THE LOAN AND CONDITIONS

3.1 The User shall choose the Loan parameters (Loan amount; Loan
cryptocurrency; term of the Loan; desired Collateral at LTV ratio; additional
optional parameters) on the lending module page in PointPay ecosystem and
click on “Get loan now” button.
3.2 The User receives the Loan to his or her account instantly if the loan
parameters are correct and the User has enough collateral either on Checking or
Savings Account in PointPay Bank in a certain cryptocurrency.
3.3 The Loan is credited to the User’s checking account in PointPay Bank in a
selected cryptocurrency. Once the user received the Loan, the User’s Collateral is
locked in the Account by the Company until the Loan is fully repaid by the User.
3.4 The User shall choose the Loan term at the time of receiving the Loan.
The Loan term can be minimum 7 days and maximum 3 years (36 months).
3.5 The User shall choose Loan-to-Value for it in the limits between 20% and
70%. The User shall understand that the higher Loan-to-Value increases the risk
of the Loan termination.
3.6 Once received the Loan, the User can determine the use of the Loan by
the User’s sole discretion, but in compliance with this Agreement and in
compliance with the requirements of relevant laws and regulations.

 3.7 One the Company has provided the Loan to the User, the Company have
the right to fully use the Collateral within the Loan term by the Company’s sole
discretion.

IV. LOAN REPAYMENT AND INTERESTS

4.1 The User shall repay the Loan to the Company and pay Interests to the
Company in accordance with repayment schedule. The User sees his or her
repayment schedule in the Account.
4.2 If the Loan term does not exceed one month, the User shall repay the
Loan once according to the repayment schedule. If the loan term is two months
or more, the User shall make a payment once a month in accordance with the
repayment schedule. The amount of each payment includes the amount of the
Loan principal debt and Loan Interest.
4.3 After the Loan is repaid in part, the Interest is calculated daily on the
remaining Loan debt principal.
4.4 In case if the User does not repay the Loan and pay the Interest in time,
the Company applies penalties to the User and can liquidate the User’s Collateral.
If it is impossible for any reason to compensate the Loan by liquidation of the
User’s Collateral, the Company also reserves the right to other relief measures
and remedies (including but not limited to freezing and debiting the User’s assets
in other products in the 6ointPay ecosystem) and the right to hold the User
legally liable.
4.5 In case of missing the payment according to the Loan repayment
schedule, the User shall pay to the Company penalty that is counted as the triple
Loan Interest rate which is accrued on the remaining loan principle. If the Loan
has one repayment according to the Loan repayment schedule (the term is up to
one month), then the penalty is accrued within 5 ( ive) calendar days. If the Loan
has several payments according to the Loan repayment schedule (the term is 2
months or more), then the penalty is accrued within 30 days.
4.6 After the User has duly repaid the Loan and paid the Interest, the
Company automatically returns Collateral to the User’s Account in PointPay
Bank.

V. LIQUIDATION OF THE LOAN AND COLLATERAL

5.1 The Collateral is fully liquidated if:
5.1.1 The User missed the payment according to the repayment schedule and
did not pay the penalty in a certain time period;
5.1.2 The Loan-to-Value reaches or exceeds the liquidation Loan-to-Value
rate determined by the Company.
5.2 The User acknowledges that the Company determines the liquidation
Loan-to-Value rate as a risk control measure to use when the cryptocurrency

 price changes due to market luctuations during the Loan term. The User agrees
to accept the inal processing results without reservation.
5.3 The User can at any time increase amount of Collateral and to decrease
Loan-to-Value to prevent the liquidation of Collateral.
5.4 During PointPay system maintenance, the User acknowledges and agrees
that, should a risk be determined at the Company’s own discretion, the Company
reserves the full and exclusive authority to manage the Collateral, including but
not limited to the close-out for the purpose of repayment and compensation of
the principal of the Loan, Interests and related fees.

VI. SECURITY. ASSUMPTION OF RISKS

6.1 Although the Company takes reasonable efforts to maintain the security
of the Account and the security of Collateral, the User understands cyber attacks
risks and agrees that the User is solely responsible for taking the necessary
security measures to protect the Account and Collateral. The Company is not
responsible for the Collateral in case of cyber attacks and the User acknowledges
this risk.
6.2 When the User requests the Loan, the User should ensure that he or she
understands the risks connected with cryptocurrencies. The User hereby agrees
to assume the risks set out in the Terms and Condition Section IV “Assumption of
risks” shall be fully applied to the Loan Services. The User also acknowledges
that there may be other risks not set out herein which are inherent to
cryptocurrency market.
6.3 The User acknowledges and agrees that the Company shall not be
responsible for or otherwise liable for any direct or indirect loss or damage of
any kind arising directly or indirectly from cryptocurrency price luctuation
(cryptocurrencies may be subject to large swings in value and may even become
worthless).
To the extent permitted by law, the Company shall not be held responsible
for any risks that are not caused by the Company’s gross negligence, including
but not limited to adverse consequences resulting from technical obstacles that
are dif icult to avoid or overcome.

VII. SUSPENTION OR TERMINATION OF SERVICE

7.1 When deemed necessary or reasonable, the Company reserves the right
to suspend or terminate the provision of the Service to the User at any time. The
User agrees, to the extent permitted by law, to hold the Company harmless
against any legal responsibility thereunder.

VIII. APPLICABLE LAW AND JURISDICTION

8.1 The Agreement and all and any disputes, controversies and differences
arising out of or relating to the Services shall be construed, interpreted, applied,
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 and governed in accordance with the laws of Estonia, without giving effect to its
principles of con licts of law.
8.2 All actions or proceedings arising in connection with this Agreement
shall be tried and litigated exclusively in the Court of Arbitration of the Estonian
Chamber of Commerce and Industry. The seat of arbitration shall be in Tallin. The
number of arbitrators shall be three. The arbitration shall be held in English.

IX. MISCELLANEOS
9.1 The Company reserves the right to modify the Agreement at any time at
the Company’s sole discretion. The Company will notify the User about
amendments by automatic noti ication on the Website and inside the Application,
but will not ask any actions to con irm that the User agrees. If the User does not
agree with the new amended version, the User must immediately stop use the
Services and repay the Loan. If the Company changes the Interest rates, the
previous Interest rate shall apply to that active Loan(s) of the User. The new
Interest rate shall apply to the new Loans.
9.2 In case of any questions or concerns about the Agreement or the
Services, or the User shall refer to the FAQ section and if the User does not ind
relevant information there, the User may contact PointPay support team and/or
to send e-mail to info@pointpay.io
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