Fees
One fee. Fixed before you sign.
The fee is a fixed fee of 9.25% of the advance, paid in USDT or USDC and stated in your Advance Confirmation before the advance is made. It is set once. It does not accrue, compound or change with time, and repaying early does not reduce it. A default adds no extra fee; enforcement costs can still apply.
Worked example · illustrative
What you receive, and what you repay
The fee is paid in two halves. Half is deducted when you are paid, and the other half is due when you repay. One month or the full term, the same amount.
| Amount | Advance 50,000 | Advance 100,000 | Advance 250,000 |
|---|---|---|---|
| Fee, in total | USDT 4,625 | USDT 9,250 | USDT 23,125 |
| Paid to you on day one | USDT 47,687.50 | USDT 95,375 | USDT 238,437.50 |
| Due at maturity | USDT 52,312.50 | USDT 104,625 | USDT 261,562.50 |
A signed Advance Confirmation states the fee agreed for that advance. Repaying early or in part does not lower the fee, and an extension carries a new fee. If your stablecoin's reference price is below USD 0.99 when you repay, the units you pay are adjusted: see repay and release.
Other costs
What else you pay, at actual cost
The fee is one fixed amount. The costs below are separate. The first three rows are pass-through costs, charged at actual cost, with no mark-up, and cannot be known in advance.
| Cost | When it applies | How it is charged |
|---|---|---|
| Network fees | Transfers into and out of your vault | At actual cost |
| Trading, venue and counterparty fees | Only if collateral is sold | At actual cost, shown on your sale statement |
| Registration and notarial fees | If a filing or notarial step is used to protect the security | At actual cost, as itemised by us |
| Enforcement costs | If we have to enforce the agreement | Actual and reasonable third-party costs, including reasonable legal fees, as itemised by us |
| VAT | Where value added tax is payable on an amount | Added to that amount |
| Tax gross-up | If tax must be withheld from a payment you make | You increase the payment so we receive what we would have received without the deduction |
You are also responsible for any tax that arises for you under the agreement, including on a sale of collateral. This is not tax advice.
Fixed fee vs APR
A fixed fee, or a cost that grows with time
A loan priced by APR costs more the longer it is open. A Box Advance fee is one amount, stated before the advance is made. Here is how each works, and when each can cost less. The APR side describes such loans in general. It is not about any one lender. Terms differ, so always read the ones you are offered.
A cost that builds up
- APR stands for annual percentage rate. It states the yearly cost of borrowing as a percentage.
- The lender charges interest on the balance outstanding, so each extra day adds to the cost. A longer loan costs more in total.
- Many loans also charge an origination fee at the start, on top of the rate.
- Some rates can change during the loan, and some loans add charges for late payment or default.
- If you repay early, you generally pay less, because the cost stops building.
Interactive · illustrative, not any lender's pricing
Move the months. Change the rate.
The advance is USDT 100,000. The fixed fee is 9.25% of the advance, USDT 9,250. The accruing cost uses a rate and an origination fee that you choose. Both rates are made up for illustration. The starting values are set so the two costs come out the same at six months: move the sliders to see either side cost less.
Illustrative, not any lender's pricing. Cost in dollars if the advance is repaid after the months shown. The fixed fee is flat because repaying early does not reduce it.
At these settings the two costs are the same after 6 months.
The accruing cost here is simple: the rate applied to the full advance for the months shown, plus the origination fee. Real loans differ. If you extend a Box Advance, the new Advance Confirmation carries a new fee.
Side by side
The same questions, answered for each
| Question | Loan priced by APR (general) | Box Advance fixed fee |
|---|---|---|
| When do you know what you will pay? | Once you know how long you will borrow, and whether any rate can change. | You know the fee before you sign: it is in your Advance Confirmation. Pass-through costs cannot be known in advance. |
| Does the cost grow while the loan is open? | Normally yes, day by day. | No. The fee is one amount. It does not accrue, compound or change with time. |
| If you repay early? | You generally pay less. | The fee is unchanged. The upfront half is not refunded and the maturity half is still due. |
| If you repay part? | The cost usually falls from then on. | Your advance and LTV fall. The fee does not. |
| If you pay late, or default? | Some loans add late or default charges. | A default adds no extra fee; enforcement costs can still apply. If it is not repaid at maturity, we may apply your collateral. |
| If you want more time? | It may be rolled over or refinanced, on new terms. | A new Advance Confirmation with a new fee, signed before maturity. Nothing renews automatically. |
Fair comparison
When each can cost less
A fixed fee can suit you when
You want the fee known and unchanged before you sign. You expect to keep the advance for much of its term. You want no late fee added if a payment is late (enforcement costs can still apply).
An accruing cost can suit you when
You expect to repay within a short time. At a modest rate, an accruing cost may then be smaller than a fixed fee, because it stops building when you repay. With a fixed fee, repaying early does not reduce the fee.
How to compare any two offers. Ask each lender for the total cost in dollars for the length of time you expect to borrow, including every fee and charge, and for what happens if you repay early, repay late or extend. Then compare dollars with dollars. This section describes APR-priced loans in general and names no lender. The rate, the origination fee and the fixed fee shown are illustrative, and nothing here is advice.
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See the figures for your advance
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