With its intuitive functionality, the Nexo Booster allows you to amplify the purchasing power of your current holdings and boost your exposure to crypto without allocating additional capital.
The feature requires Identity Verification and can be accessed both within the Nexo mobile application and the browser version of the platform. It works by using your existing crypto holdings and allowing you to borrow additional funds to grow your position in a certain asset. That is right, we give you credit that you can instantly use to acquire more crypto assets through a single leverage transaction.
Below are the key points that best describe the Nexo Booster:
- Leverage: Get between 1.25 and 3x leverage on your portfolio.
- Fully Collateralized: A permitted LTV of the transaction with up to 70% gives you the security that Nexo never lends on an uncollateralized basis.
- A variety of currencies that you can find in the Nexo Booster tab* **
- $250K Maximum per transaction. You can make as many booster transactions as you want.
- Cashback: Get up to 0.5% cashback on the booster transaction.
* The NEXO Token is excluded from the Nexo Booster, you cannot pay with or boost NEXO.
** You can use crypto, Stablecoins, and EURx, GBPx, and USDx for the “Pay With” currency in the Nexo Booster, but keep in mind that you will NOT be able to select EURx, GBPx, USDx or stablecoins for your “Receive” currency.
Tip: Once an asset you’ve purchased with the Nexo Booster increases in value, you can use the ‘new available credit line’ to repay your outstanding credit.
Are Booster Transactions 100% Collateralized?
Yes! Leverage via the Nexo Booster works by collateralizing your existing holdings for an initial part of the loan. Naturally, that isn’t enough collateral for the rest of a 3x leverage transaction. As collateral for the rest of your loan, Nexo immediately collateralized the assets you are acquiring through your booster transaction, making your credit fully collateralized.
In effect, Nexo uses your existing crypto holdings plus the newly-acquired asset as collateral to give you a bigger crypto-backed credit line to finance the aforementioned acquisition.
What Are the Fees?
Fees for the Nexo Booster are factored into your outstanding credit line balance. There are three different fee tiers that are determined by your LTV. The fee to be charged will be included in the “Borrowed funds” amount in the “After Purchase” section which you can check before finalizing your booster transaction.
The fees are as follows:
- < 50% LTV: 1%
- 50-60% LTV: 2%
- 60-70% LTV: 3%
Upgraded Exchange Interface & The Booster
Since the Nexo Booster lives in the Exchange section of the Nexo App, our team took this as an opportunity to tie up a few loose ends on that front and give you a more intuitive experience. In relation to this, we are integrating the following change:
Instead of the Buy, Sell, and Swap tabs of the Exchange section, you will see only two tabs: Convert and Booster. The Convert Tab encompasses all three of the former options – this is where you would go to buy, sell or swap assets. The Booster option in turn is naturally where you would tap if you’re looking for a leverage transaction.
Important: Please note that Nexo Booster loans repaid in less than 30 days are charged interest for the remainder of the 30-day period at the standard APR of 13.9% regardless of your loyalty tier. This is in order to prevent improper use of the Nexo Platform and to safeguard Nexo as a company, but more importantly, our clients and investors.
This information is also available on the Credit Line Repayment screen as seen in the sample screenshot below:
Disclaimer 1: Currently excluded from Nexo’s Nexo Booster product per the Nexo Earn Interest Product General Terms and Conditions and the Nexo Exchange Service General Terms and Conditions, as amended on occasion are citizens or residents of Bulgaria, Estonia, the United States of America, Canada and Australia, as well as of other jurisdictions subject to certain limitations or restrictions as may be applicable at times.
Disclaimer 2: You understand and agree that you use the Nexo Booster at your own risk. Needless to say, as a leverage trading product, the Nexo Booster can work in both ways – it amplifies your gains when the chosen asset appreciates, yet magnifies the losses when prices are falling. In order to make an educated decision, you need to have a thorough understanding of how the Loan-to-value ratio and price-based margin calls and liquidations work. You should, therefore, carefully consider whether such use is suitable for you in light of your circumstances and financial resources. If you are uncertain, please seek independent legal advice.