Loan Overview

Overview

The Outstanding Loan section in the Qaay dashboard provides a comprehensive overview of the user’s active debt position. It clearly displays the total principal borrowed, the portion of the credit facility currently utilized, and the remaining Available to borrow based on collateral value.

The principal Balance is denominated and recorded in United States Dollars (USD). Once issued, the principal remains fixed and does not fluctuate with market conditions. It changes only when a new loan is opened or when a repayment reduces the balance. Variations in collateral value affect risk metrics but do not alter the principal Balance itself.

Key Concepts

Term	Definition
Outstanding Loan	The total unpaid loan principal denominated in USD.
Available to Borrow	The remaining Value the user is eligible to borrow is based on collateral value and risk ratio.
Outstanding Loan Balance	The numeric USD value of the current principal balance.
Tier	The user’s loyalty level (Entry, Standard, etc.), which determines borrowing conditions.
Upgrade Your Tier to Borrow	An indicator that upgrading your Tier may increase Available to Borrow and improve loan terms.
APR	The annual borrowing rate is applied according to Tier status.
Credit Score	A real-time credit health indicator based on the relationship between Outstanding Loan and the total Credit Line Value. A higher Credit Score indicates a healthier and safer position, while a lower Credit Score indicates increased risk.
Credit Status	The qualitative risk classification is derived from the Credit Score.
Credit Line Account	The collateral wallet secures the user’s borrowing activity.
Credit line Value	The remaining available credit capacity is shown in USDx.
Liquidation Threshold	The defined threshold in USDx beyond which automatic collateral settlement may be triggered.
Total Repayment Balance	The total payable Balance at settlement, including principal, accrued interest, and applicable fees.
Additional Interest	Daily interest accrued up to final repayment confirmation.
Repayment Fee	The operational fee is applied to repayment transactions.
Non-Stablecoin Fee	The conversion fee applies when repayment is made in a non-stable cryptocurrency.
Principal Repayment	The portion of a payment allocated to reducing principal after interest and fees are deducted.
Outstanding After Repayment	The remaining principal balance after repayment execution.
USDx	A stable-value reference unit used for displaying borrowing limits and loan metrics.
Borrow (Button)	Allows the user to initiate a new loan request if eligible.
Repay (Button)	Allows the user to repay the Outstanding Loan in full or in part.

Loan Management Overview

The Outstanding Loan section of the Qaay dashboard offers a clear summary of the user’s active debt. It displays the total principal borrowed, current credit utilization, and remaining Available to Borrow based on the collateral value.

The principal Balance is recorded in United States Dollars (USD) and remains fixed after issuance. It changes only when a new loan is taken out or a repayment is made. Changes in collateral value affect risk metrics but do not impact the principal Balance.

The Outstanding Loan module is the primary debt management interface in Qaay. It displays active principal debt, collateral value, Credit Limit, and key risk indicators.

Loan principal is denominated in USD and remains unchanged unless increased or repaid. Interest accrues daily and is calculated according to the user’s Tier at the time. Higher Tiers receive lower APRs.

The loan term is two years. Any unpaid balance after this period incurs a 0.1 percent increase in the APR.

There are no required monthly installments. Users may repay their debt at any time and in any Balance.

The Credit Score is calculated using the following formula:

Credit Score = Outstanding Loan / Total Assets in Account Credit Line

The Credit Score represents the user’s credit health on a 0-100 scale. A value closer to 100 indicates stronger credit health and lower liquidation risk. As the Credit Score decreases, the user’s position becomes riskier and may move closer to QAAY’s configured warning or critical thresholds.

An increase in Outstanding Loan reduces Available to Borrow. Repayment proportionally restores the Credit Limit.

Outstanding Loan is non-transferable and remains tied to the original user account.

Qaay does not provide debt insurance unless explicitly announced through official channels.

To keep an Outstanding Loan active and properly managed on Qaay, the following conditions must be met:

The user must maintain an active Account Credit Line with sufficient collateral. Available to Borrow is determined by the value of collateralized assets and the applicable loan-to-collateral ratio. Without adequate collateral, an active loan cannot be obtained or maintained.

When the loan is issued, the debt Balance is recorded in USD as the user’s principal obligation. This Balance remains unchanged unless repaid or a new loan is issued.

The user’s Tier determines the APR applied to the loan. Tier status must be valid and active to ensure the correct rate is assigned.

There are no asset-type restrictions for repayment. Any supported cryptocurrency may be used, regardless of the original loan currency. A conversion fee applies if a non-stable asset is used for repayment.

There are no mandatory monthly installments. However, the debt must be settled within two years. If unpaid after this period, the APR increases by 0.1%.

Repayments are not automatic and must be initiated manually by the user.

The loan cannot be formally renewed. Any outstanding balance after two years remains active at the adjusted APR.

Once a loan is issued, the Outstanding Loan is recorded in the user dashboard and daily interest accrual begins.

Loan interest is calculated daily and automatically deducted from the user’s Savings Value. If Savings are insufficient, the system deducts interest from the Account Credit Line. This process is fully automated.

During the loan term, Credit Score, Available to Borrow, and the margin to the Liquidation Threshold adjust dynamically. Increased debt or decreased collateral value raises the debt ratio and increases liquidation risk.

To repay, users access the Repay Loan section and enter the repayment Balance. The system then calculates the following:

Principal Repaid = The portion of the repayment Balance that directly reduces the Outstanding Loan after interest and fees are deducted.
Interest Paid = The Balance of accrued loan interest covered by the repayment.
Repayment Fee = The operational or processing fee charged by the platform for executing the repayment transaction.
Remaining Loan Balance = The Outstanding Loan Balance remaining after the current repayment has been applied.
Total Balance Used for Repayment = Accrued Interest + Repayment Fee + Conversion Fee (if applicable) + Principal Reduction

Payments are first applied to accrued interest and fees; any remaining Balance reduces principal. Repayment history and transaction records are accessible in the Transactions section for transparency.

After confirmation, the selected Balance is deducted from the user’s wallet and the outstanding debt is reduced. If the loan is fully repaid, the Outstanding Loan becomes zero and the credit limit is restored.

If collateral value falls below the Liquidation Threshold and the user does not act to increase collateral or reduce debt, the system will issue a warning and then initiate collateral liquidation to settle the obligation.

This process continues until the debt is fully repaid or increased by a new loan.

Best Practices

Effective management of Outstanding Loan requires ongoing monitoring of Credit Score, Available to Borrow, and Liquidation Threshold.

Because interest accrues daily, holding debt longer increases borrowing costs. If unpaid beyond two years, the additional 0.1 percent interest further raises costs.

Partial repayments improve the debt ratio and reduce liquidation risk. Increasing collateral is another risk management strategy.

The lack of mandatory monthly installments offers flexibility but requires responsible financial management. Users should balance debt, collateral value, and interest exposure to avoid forced liquidation.

The Outstanding Loan module serves as a risk management and transparency tool within Qaay. Effective use requires understanding interest structure, collateral status, and long-term repayment implications.