Common use of Interest Rate Reduction Clause in Contracts

Interest Rate Reduction. You may redeem SALT Tokens when originating your loan in exchange for a reduced interest rate. For example, a one year $100,000 loan with a 12.95% APR would have 12 scheduled monthly payments of $8,929.38. If you redeem 336.7 SALT Tokens at origination, the one year $100,000 loan will have a 7.90% interest rate (7.95% APR) and 12 scheduled monthly payments of $8,694.20. Redemption of SALT Tokens during loan origination will be considered a “financing charge” and set forth in the applicable Truth-In-Lending Disclosure. The specific amount of SALT Tokens required to redeem for an interest rate reduction will vary from time to time as displayed on the Platform. We are under no obligation to redeem SALT Tokens as described herein. The ability to redeem SALT Tokens may be subject to additional terms, conditions, and restrictions, and may be declined in our sole discretion. The recognition of any redemption in SALT Tokens may have certain tax implications and you should seek legal and tax advice with regard to any redemption in SALT Tokens.