HODL.ZONE Payment Update
We’ve had great success at HODL.ZONE with loaning uptime and matching competitive rates. Unfortunately our server costs are amounting to non-negligible amounts, and we have to find new ways to cover our costs.
To start covering our server costs, and also justify more time spent on the project, we have come to the conclusion to implement payments. This will also allow us to open the project to signups without an invite code, as we can scale our infrastructure with the payments from new users. We hope to keep our existing customers, and will reward the users that have been with us since the beginning.
What are Payments?
Payments are a revenue sharing model, where HODL.ZONE will take a portion of the interest we generate for our users. It acts as a cost for our service, but because it is a percentage of the profits, we only make money if you do. This keeps us in check, as it highly incentives us to maximize your profit and uptime. The actual percentage being charged will vary, but will never be over 10% of the profit. We have various ways to bring down the costs for our users, so stay tuned in our slack for new opportunities to bring down your cost.
Debt & Credit
In order to keep track of the new payments, our system has new user pages and 2 new terms that you will need to understand:
- Debt: The amount you owe HODL.ZONE in BTC.
- Credits: The amount of BTC you deposited in HODL.ZONE to pay off the debt accumulated.
If your credits goes negative, then the bot will cease all lending for your account, meaning you have to deposit BTC into HODL.ZONE to keep the bot running. When new debt is accumulated via the form of a loan closing, credits will be deducted from your account.
Each day we will review all loans closed on the previous day, and add debt accordingly. This also means that we will never charge for a current open loan, so all charges are to BTC you have already earned. Credits are deducted about every hour, so if you have unspent credits, and unpaid debt, just give it time and things will settle out.
How to see and pay debt?
To manage these new features, one of the new pages on our site is Payment Information.
This tab covers:
- Credit details
- Debt details
- Deposit details
The top part has a lot of information. The left half is a quick link to depositing more credits, which we will get to later. The right half shows the current Unspent and Spent credits. The Unspent is the amount of credits you have available to pay Debt. The Spent is the amount of Debt paid so far. If Unspent hit 0 (or less than 0), all lending halts. Below that is the current charge amount. This percentage is the percentage of the profit that we will charge on all new debt. When debt is calculated, the current charge rate is taken, so get your discounts early! The last item is referrals. Referring a friend can now benefit yourself. If they deposit > 0.025BTC, you will receive 0.5% off your total charge. Additionally for each 0.01BTC you deposit, you will receive 0.1% off your total charge. There are also other discounts you can receive and view with the ‘View more’ button.
The next element is all payments (Deposits) we receive for your account. The ‘View More’ will provide some additional details as well as a receipt. When making payments, be sure to keep all receipts in the event something goes wrong. We use Coinbase for payment processing.
The last element is the list of Debts. We will only show the last 100 to the UI for data transfer reasons. In the event you have unspent credits, the table elements will be green. Each row refers to a loan made and will show the close date, the amount earned, the amount earned in BTC, and how much you owe HODL.ZONE. The earned amounts do not include Poloniex’s fee. The amount owed is rounded down at the last satoshi (so anything <9 satoshis is no charge from us!)
Adding Credits
So you know where to view your debt and payments, great! But I’m sure you are curious how to actually deposit credits to get your account going. If you haven’t figured it out by now, we accept Bitcoin.
Please read the disclaimer and information on this page. To actually make a deposit scroll to the bottom and check the box. Double check the email listed at the bottom, this is the account to be credited.
This will link you to a Coinbase page. Please input the same email as your HODL.ZONE account. It will still work if they are different, but it helps our records.
The amount is a CUSTOM amount, meaning you specify how much you wish to deposit. If you do not have a Coinbase account, keep in mind this does not include the bitcoin transaction fee. If you are a Coinbase customer, there is NO fee, meaning you can deposit micro amounts (E.g: 0.000001 BTC)
Coinbase Customers
You can choose the ‘USE COINBASE WALLET’ option, and after signing in choose wallet to pay the amount. Since there is no fees, feel free to deposit micro amounts (0.000001 BTC)
Non-Coinbase Customers
Keep this page open and send the BTC amount + fee to the address specified. Try to do it before the time expires, and you can open a new deposit window to reset the time. Upon making a payment, please save that page, as we are not notified until the payment is confirmed.
How much to deposit?
Deciding how much to deposit can be tricky since the rates change sometimes daily. We do have a tool to assist making this decision.
The inputs are the token, the amount, the lending uptime (how much of the tokens are being lent at a time) and the HODL.ZONE fee.
The bottom will change when you change the input. The first is the lending rates averaged over different time periods. The second half uses the 30 day average rate, and gives a daily through yearly estimate on profit in the token and in BTC as well as the HODL.ZONE fee.
If you want to deposit enough credits to run the bot for 1 month with 1 BTC at 10% fee at the time of this post, you would deposit 0.00045651 BTC. If you do not a Coinbase account, the fees would cost more than the deposit, so keep that in mind when making deposits (also the rates are low at the time of this post)
Any questions? Contact us on our slack or by email.
