GxHODL Card: FAQs
What is the GxHODL Card?
In partnership with VISA*, Geneviève & Cie would like to announce the launch of the GxHODL Card. Through Lombard Credit mechanics, the card will offer credit in fiat currencies to facilitate transactional payments. Available credit will be relative to the underlying holdings of supported cryptocurrencies.
The GxHODL Card will launch in June 2018; initially, it will be exclusively offered to GXE and GXVC holders, conditional to a minimum holding of 10,000 GXE or 100,000 GXVC.
How do I get the GxHODL card?
The first batch of GxHODL Cards will be distributed on March 15th to the first 10 contributors to our Ether-Convertible Geneviève Bond program (min. contribution: 5ETH). Further information can be found here.
What are the benefits of the GxHODL Card in comparison to others cryptocurrency cards?
- Access crypto-backed liquidity in fiat by way of Lombard credit
- HODL; mitigate financial vulnerability against market fluctuations
- Postpone tax liabilities
Which cryptocurrencies will be supported?
BTC, ETH, GXE, and GXVC will be supported at launch; additional cryptocurrencies will be supported in due course.
How can we HODL our cryptocurrency positions whilst using the card to transact payments? How does Lombard credit apply to a debit card?
Lombard credit mechanics offer GxHODL Card holders cryptocurrency-backed liquidity; by extension, card holders are able to withdraw fiat currencies and transact payments.
The available credit amounts to 40% of the respective cryptocurrency’s valuation averaged over the past 15 days proportional to holdings; available credit against future-supported cryptocurrencies will amount to 20%.
Is the GxHODL card available in my country?
The GxHODL card will be available globally.
What are the ATM withdrawal limits on the GxHODL card?
The limit for each withdrawal is set at 1,000 EUR. The daily withdrawal limit is 1,000EUR; the weekly withdrawal limit is 6,000EUR.
Are repayments made in the transacted fiat currencies?
No; repayments must be offered offer via a supported cryptocurrency.
Which currency does the vendor receive?
Transactional payments are offered in local fiat currencies to vendors; local currency exchange is offered by VISA.
Can the collateralized cryptocurrencies be offered as payment against the credit balance?
Collateralized cryptocurrencies can be offered as payment against credit balances. A payment cycle isn’t set; however, any outstanding balance must be cleared before the collateral is released.
What is the recognized fiat value of the cryptocurrency used to make payment?
The market value of the offered cryptocurrency is recognized at the time of payment.
How is interest calculated?
Interest is compounded daily at 12% per annum.
Geneviève charges convenient fees to cover the cost of credit. The calculation mechanics are detailed below.
K: Borrowed amount
p: Incremental periods to the maturity date
n: Initial contractual term of credit
Fp: Amount due at time p.
Unlike the TEG, which is an “equivalent” rate, the APR is an “actuarial” rate, i.e. it reflects the composite nature of the interests — the fact that the interests themselves produce interest.
Lombard year
Credit institutions often practice rate calculations based on a fictional year of 360 days called Lombard.
*The partnership detailed in the above post refers to our developing relationship with Banque Atlantique, through which, we are contracted as a VISA distributor. The legal and technical specificities of the aforementioned partnership are still under discussion. The above article intends to offer a fair and unbiased understanding of the project’s development and current status; the post is not purposed as a promotional medium. Our primary concern is, and will continue to be, legal compliance. By extension, all token holders are required to offer KYC submissions. Cryptocurrency markets are volatile; all participants are advised to conduct their own due diligence to assess systematic and idiosyncratic risk.
