The Peoples Reserve credit facility is designed to be a tool for wealth preservation, not a debt trap. Unlike traditional amortizing loans that require high monthly payments of both principal and interest, our lines of credit (BLOC and BBLOC) utilize an Interest-Only structure. This maximizes your liquidity, allowing you to keep your capital deployed in high-growth opportunities while simply servicing the cost of the carry.
Table of Contents
- The "Indefinite" Term: Borrowing on Your Timeline
- Monthly Interest Billing: How it Works
- Principal Repayment: Total Flexibility
- Operational Guardrails & Best Practices
The "Indefinite" Term: Borrowing on Your Timeline
We have removed the "ticking clock" found in traditional finance.
- No Fixed Maturity: There is no 12-month or 5-year "end date" where the full balance is due.
- No Forced Repayment: There is no lump-sum repayment required at any particular date.
- Borrower Discretion: The principal can be carried indefinitely. You decide when to pay back the balance, provided the account remains in good standing.
Monthly Interest Billing: How it Works
Interest is accrued based on your outstanding monthly balance and is determined by your current Loyalty Tier and product type.
- Billing Cycle: Interest-only payments are due monthly.
- Accrual Logic: Interest is accrued based on the monthly balance of the loan.
- Payment Assets: You can service your interest in USD or prUSD.
Daily Interest Formula:
(Outstanding Principal × Annual Interest Rate) / 365 = Daily Interest Cost
Recalculation: As you pay down your principal, your future monthly interest obligations are reduced to reflect the lower outstanding balance.
Principal Repayment: Total Flexibility
While interest is a monthly requirement, principal repayment is entirely at your discretion.
- No Lump Sums: You are never forced to pay back the principal by a specific deadline.
- Pay Down Anytime: Principal can be paid down anytime at your discretion.
- No Prepayment Penalties: There are no fees or penalties for reducing your debt early.
- The "Revolving" Nature: As you pay down your principal, you maintain your Bitcoin or Bitcoin Bond position while reducing your monthly interest burden.
Operational Guardrails & Best Practices
- Mandatory Interest: Monthly interest payments must be maintained to keep the line of credit active.
- Currency Selection: Using prUSD or USD ensures a seamless repayment process within the Peoples Reserve ecosystem.
- Deployment of Funds: Once your BBLOC or BLOC credit line is established, you can deploy capital however you see fit—reinvest into your business, fund operations, acquire assets, or cover expenses.