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      Lender Protections

      How Hub provides protections to Lenders

      Hub focuses on providing as much transparency and protection to a lender as possible. It is done with daily BTC payments, full data access to the machines and subaccount paying a loan, and support for additional collateral wallets. 

      Payouts

      Loan payments are paid on an amortized schedule, every single day, entirely in BTC. When a miner opts into Hub and starts a loan with a lender they forgo their traditional payout management configuration up to the amount owed which is directly paid out to the lender. 

      Data

      Rather than receiving weekly or monthly reports on a subaccounts value, production, uptime and other metrics. Hub provides realtime information on a subaccounts production, uptime and health to the lender as soon as a loan is active with the subaccount. 

      Collateral Wallets

      Working with BitGo, Hub lending supports tri-party collateral wallets. These wallets are owned by the miner, but if Foundry submits proof of a missed payment or default the funds can be released to the lender. 

      The collateral wallet supports a target amount of BTC and allows for pre-funding, a daily funding schedule, and/or funding at any time during the loan. 

      For example their could be a 10 BTC loan over 6 months that requires a 5 BTC loan which would support 3 months of the miner not being able to pay the loan down with their production. In this case the miner's daily production might average 0.25 BTC for a daily loan payment of roughly 0.06 BTC. The lender could

      • Pre-fund the reserve wallet with 5 BTC prior to the loan starting
      • Opt not to pre fund the loan and instead out of their total 0.25 BTC production: pay the 0.06 loan balance and direct the rest 0.19 BTC into the reserve wallet. After about 26 days the reserve will be up to the target of 5 BTC (3mos) and daily production will no longer be directed to it. If the balance of the reserve dips below 5 BTC, daily production will be directed to it until it meets the 5 BTC target amount.
      • Use a combination of the options, pre-fund the reserve with 2.5 BTC (1.5 mos of missed payments) and direct remaining daily production to fund the reserve wallet to the target of 5 BTC