Performance Reporting is Here

We’re excited to announce the addition of performance reporting – an evolution of the investments page.  This enables investors to easily view the results of investments at anytime.  Additionally, investors can see the performance of their AutoInvest portfolio versus individually selected loans.

Investors can see how their accounts are performing through the following components: Net Annualized Return (NAR)

  • Net Annualized Return (NAR)
  • Account Value
  • Interest received with a payments summary
  • Portfolio Risk Score

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NET ANNUALIZED RETURN (NAR)

The first set of information you will notice is net annualized return (NAR) which is a measurement of the performance of your total investment on BTCjam. It reflects the payments actually received each month.

The returns are calculated by simply projecting all the current loans as fully repaid and all late loans as defaulted. The annualization assumes that all your capital will be reinvested in similar loans.

NAR can be expressed as this formula, for any period from month 1 to month N, where “i” is the recurring monthly period:
NAR

For note trading, the amount you pay for a note is added as principal invested. All the payments you get from a note are fully added to your returns.

You can see the chart with the breakdown by listing grade you invested in (from A to D) and also how your AutoInvest plans are performing against the average NAR of other investor’s AutoInvest plans.

NAR is calculated dynamically taking into account all information available at the time. This only reflects your return starting with funds invested on or after April 1st, 2014, as this is when BTCjam started using this calculation.

ACCOUNT VALUE

Account Value

Account Value offers a great way to see your total account value and it’s segmented by what is available cash in bitcoin (converted to your display currency), accrued Interest, in funding investments, and outstanding principal.

INTEREST RECEIVED

Interest received is segmented by score group where the allocation percentage to the left is based on the total amount received.

Interest Received Investor Page

Your payments summary shows the total amount you have received in payments. It is a sum of payments to date, principal received, interest received, and late fees received.

PORTFOLIO RISK SCORE

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Portfolio risk is based upon the number of investments you have made along with the consistency of amounts in each loan. The risk range is expressed as Low, Moderate, or High. The lower the risk is, the higher the probability of the portfolio achieving the expected NAR¹.

To reduce risk, diversify your portfolio by investing the exact amount on each loan you want to participate in². The best way to do that is through an AutoInvest plan: set the parameters and let our system automatically invest in hundreds of loans for you.

With this recent development and many more exciting things in our pipeline, we welcome you to try this new feature for your own account. If you’re not a current member, create an account. Enrollment process is simple and you can earn up 18% returns on your bitcoin³.

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¹ Information in this chart is for information only.  It is impersonal and not individualized for any specific investor’s financial situation and it is not investment advice.  This chart is not intended to be, nor should you interpret it to be, a prediction of how a particular portfolio will actually perform.  You should always carefully consider investments and should be comfortable with your understanding of the investment.  You may also consider consulting investment professionals.  

² This information is not intended to be investment advice. Loans invested in via BTCjam are not guaranteed or insured, and investors may lose some or all of the principal invested. You should consult your financial advisor if you have any questions or need additional information. Actual results may vary.

³ Historical performance is not a guarantee of future results. Loans invested in via BTCjam are not guaranteed or insured, and investors may lose some or all of the principal invested.

Volabit y BTCJam permiten inversión en micropréstamos con bitcoin en México

Volabit y BTCJam permiten inversión en micropréstamos bitcoin2

(OroyFinanzas.com) – Las startups Bitcoin BTCJam y Volabit, brasileña y mexicana respectivamente, se alían para permitir que usuarios mexicanos puedan invertir con bitcoin a través de una plataforma de micropréstamos para la financiación de proyectos internacionales.  Read More…

BTCjam partners with Volabit to bring bitcoin loans to Mexico

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Hola Jammers! We’ve got great news this morning… BTCjam is partnering with the leading Mexican Bitcoin exchange Volabit to bring our users from Mexico a superior Bitcoin experience.  Volabit users can now transfer funds and activate automatic payments all from BTCjam.com!  Lending bitcoin and gaining returns has never been easier, and Volabit users can now transfer their bitcoins to BTCjam without ever leaving the site. Together Volabit and BTCjam make borrowing and investing bitcoin in Mexico simple!

  • You can withdraw bitcoin seamlessly from Volabit without leaving BTCjam
  • Your automatic payments can withdraw from your Volabit wallet to make a payment
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BTCjam and Volabit have partnered to make borrowing bitcoin in Mexico easier than ever.

BTCjam CEO Celso Pitta said, “I’m thrilled about our Volabit partnership.  Volabit integration will make BTCjam much easier to use for our customers in Mexico.”  Hannah Kim, Co-Founder of Volabit agrees, saying “BTCjam is one of the most exciting companies in Bitcoin and we’re delighted for how our new partnership makes bitcoin borrowing and lending easier for our customers.”

“Volabit integration will make BTCjam much easier to use for our customers in Mexico.” – BTCjam CEO, Celso Pitta

Get detailed instructions on how to connect your Volabit Wallet to BTCjam on the BTCjam Blog!  Once you have connected your Volabit wallet, you can easily transfer bitcoin to BTCjam and make automatic payments on your loan.  It’s just that easy.

Attention Bitcoin Wallet providers, we are looking to integrate additional wallets! Please contact us at partner@btcjam.com if you would like to partner with BTCjam.

About BTCjam BTCjam is the global leader in peer-to-peer lending using Bitcoin, and the first to offer a proprietary credit score to its users.  BTCjam’s disruptive credit model is changing the way borrowers and investors connect, providing a new path to financial freedom for users from more than 200 countries around the world. BTCjam promotes lending without borders, where people can borrow and lend bitcoins, without having to worry about banks and other intermediaries. Transactions are instantaneous, hassle free, and supported by an engaged, trusting global community.

About Volabit Volabit is the fastest and safest way to buy and sell Bitcoin in Mexico.  Founded in 2014, Volabit has more than 4,000 users and they have converted more than 24,000,000 pesos into Bitcoin. Volabit received venture funding from the Bitcoin Opportunity Corp and has been described as the “Coinbase of Mexico”. Check out Volabit at https://www.volabit.com

How to Link your Volabit Wallet to BTCjam

At BTCjam, we are very excited about our new partnership with Mexican bitcoin exchange, Volabit.  Here are some simple instructions on how to link your BTCjam account to your Volabit wallet:

Log in to the BTCjam website at https://btcjam.com/

1. Navigate to the arrow by your user name, in the upper right hand corner, click Settings
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2. Click Credit Rating
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3. Click Wallets & Exchanges
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4. Click Volabit

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5. Click Authorize to allow BTCjam to use your account.
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That’s it!  Your Volabit account is now linked with your BTCjam account.
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To add funds from your connected Volabit wallet
1. Click on the arrow at the top center of the page near your Bitcoin balance.
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2. then click Add Funds
3. From the Add Funds popup window, simply click the
“Add funds from Volabit” button at the bottom of the window:

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4. Simply enter how much you would like to transfer from Volabit, enter your 2FA code (if you have 2FA enabled) and click “Transfer from Volabit” to transfer your funds.
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And you’re all set! Thank you for reading BTCjam’s tutorial on how to link your Volabit Wallet to BTCjam.  Remember you can now use your linked wallet for transferring funds or even making automatic payments on your BTCjam loan.  Thanks to Volabit for partnering with BTCjam.
If you need a bitcoin loan, borrow on BTCjam!  If you want to invest, invest on BTCjam!

BTCjam improves Loan Listing Process

Bienvenido Jammers!

We’ve got great news today from the BTCjam Anti-Fraud Department.  We have enhanced our loan review process to focus on providing higher quality loans and keeping our loan marketplace streamlined.  To accomplish this, all loans are now being reviewed by an Anti-Fraud Specialist before they are posted on BTCjam.com.  Don’t worry, this loan review will be integrated in a way so that the loan process remains efficient.

Our goal at BTCjam is to provide investors with the best loans and borrowers with the best possible chance to have their loan funded at a competitive rate and these changes will help us continue doing that.

Until Next Time… Keep on Jamming!

If you need a bitcoin loan, borrow on BTCJam!  If you want high returns, invest on BTCJam!

BTCJam Introduces Risk Based Pricing (Interest Rates Set Automatically by Credit Score)

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BTCJam is changing the way interest rates are set in order to improve the experience for both borrowers and investors. Starting today, BTCJam will set the borrower’s interest rate automatically based upon their credit score. The higher the borrower’s credit score, the lower their interest rate.

Automatically calculating the interest rate based upon credit scoring is known as risk-based pricing and is a well known and time proven methodology within the financial services industry. Interest rates are set by a combination of the borrower’s credit rating (using BTCJam’s proprietary credit rating system) and the duration of the loan. Borrowers who are less likely to default will receive lower interest rates.  Since BTCJam has all of the information about the borrowers, we are in a better position to determine the likelihood of the borrower paying back the loan and will adjust the interest rate accordingly. Risk-based pricing makes investing easier because when a lender invests in an A-rated loan, they know that the borrower will be paying an A-level interest rate.

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Interest rates are set by a combination of the borrower’s credit rating and the duration of the loan. Borrowers who are less likely to default will receive lower interest rates.

When borrowers are allowed to set their own interest rates, it is far too tempting for them to set a low interest rate and see if investors will accept lower returns.  While a borrower who receives a very low interest rate usually pays back their loan, it does not provide the investor any cushion against possible defaults.  With risk-based pricing, the interest rates for all loans will be standardized, ensuring that investors are able to offset possible losses from defaults.

We are confident that this change will improve BTCJam and allow us to continue to maintain the highest repayment rates in peer-to-peer lending (as high as 98% for A-rated borrowers), as well as increase overall returns to investors.

Check out the changes and start investing with BTCJam.  Get a loan with a reasonable rate with BTCJam.

Risk Based Pricing (automatic interest rates) Q&A

Q: What will happen to loans that were created before the change to Risk Based Pricing?

A: Loans created prior to the adoption of Risk Based Pricing (automatic interest rates) will continue until they have either been funded or have expired. BTCJam will identify the old loans and will separate them so they will be only be accessible using filters.

Q: The system sets a rate that is too high for me and I won’t be able to repay it. What should I do?

A: If the interest rate on your loan is too high you should verify more documents and add more information to your profile. By verifying more information, you will increase your credit score and receive a lower interest rate.

Q: Do I still have the option of doing a loan tied to a local currency?

A: Yes you will still be able to choose between a Bitcoin loan and a loan tied to local currencies. Learn more about currency types.

Q: Why did BTCJam choose to change the way that interest rates are determined?

A: BTCJam changed to risk-based pricing for a number of reasons. One reason being investor and borrower security. By setting the interest rates automatically it simplifies the risk assessment for both borrowers and lenders. Learn more about risk-based pricing.

Q: Will there be a set standard for interest rates based upon credit rating? For example, will all C rated borrowers have loans set at a standard 5.5% interest regardless of profile completeness?

A: Yes, every credit score grade will now come with a set interest rate that is the same for all borrowers that have the same credit score. However, rates will change also according to the loan term. That means, a C loan for 30 days will have lower rates than a 1 year loan for a C rated  borrower.

Q: Can I pay more than the recommended interest rate?

A: No. The interest rates are now automatically linked to your credit rating.  This change protects our investors from loans that are “too good to be true” and that the borrower never intends to repay.  We took into consideration both borrowers and investors when making this change.