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Frequently Asked Questions

1. What is a Floating-Rate Note?
   A Floating-Rate Note (sometimes referred to as a "floater") is a security that has an interest payment that can change over time. As interest rates rise, the security's interest payments will increase. Similarly, as interest rates fall, the security's interest payments will decrease.


2. Does Encrypted Energy rehypothecate customer loan collateral?
   Yes. Encrypted Energy takes your spot Bitcoin loan collateral and invests it in Bitcoin ETFs.


3. Does Encrypted Energy use customer funds to borrow securities?
   No. Encrypted Energy never uses customer funds to borrow securities or fund debt obligations of any kind.


4. Does Encrypted Energy commingle customer funds with proprietary funds for other investment strategies?
   No. We maintain separate brokerage accounts to keep customer funds independent of company assets.


5. Where does the Floating-Rate Note yield come from?
   Mostly institutional investors such as hedge funds who seek to obtain short positions on the Bitcoin market.


6. Do you offer a loan product that lets me hold my keys?
   Not currently, though we are actively exploring methods to make your collateral more secure.


7. Can I redeem my Floating-Rate Note before it matures?
   Yes, under most circumstances we allow early redemptions for a fixed penalty of 10%. Contact us to discuss your scenario.