Gluwa Invest (Fixed-Term Interest Account) FAQ
A list of frequently asked question about how our Fixed-Term Interest Account operates
Last updated
Gluwa
Gluwa Documentation
A list of frequently asked question about how our Fixed-Term Interest Account operates
Last updated
The Fixed-Term Interest Account (FTA) is an interest-bearing account that offers market-leading yields to investors by connecting you directly to world leading debt investment opportunities. Users must choose which investment deals they wish to partake in, and can then deposit their USDC stablecoins into the specified account to start accruing interest daily. Your deposit plus the interest you've earned can be drawn down when the deal matures.
Gluwa vets and works with various best-in-class, VC-backed fintech lenders whose mission is to improve financial inclusion by serving the underbanked/unbanked in developing countries. Once vetted and approved, these fintech lenders can raise debt-financing through the FTA by opening an FTA investment pool, offering investors various deal terms to attract deposits.
When you deposit your USDC into one of these FTA investment pools, you are supplying these fintech lenders with junior tranche lending capital which they will then use as capital to fund their lending business operations. Upon completion of the deal, these fintech lenders will pay back the principal plus any interest earned.
In addition to comprehensive due diligence and legal repayment enforcement mechanisms, Gluwa also offers investors public risk assessments for every approved fintech fundraiser. Furthermore, you can also view certain approved fintechs’ credit performance live on the Creditcoin blockchain. If you’d like more information on how we generate our yields and protect our investors, please read this article.
After you have deposited your investment into an FTA investment pool and the deal has been closed, your principal, plus any interest earned, can be drawn down into your wallet after the specified investment maturity period. This can vary depending on the individual deal. This means that you will not be able to draw down your deposited funds plus any interest until the full deal maturity period has elapsed.
Exceptions to this rule occur when the FTA investment pool is ‘rejected’ or its minimum investment threshold is not reached. In these cases your funds will be available for immediate drawdown.
We require certified proof of address in order to meet our AML/KYC compliance obligations.
KYC or Know Your Customer is a procedure any financial services company is obligated to go through to verify the identity of its users. The procedure fits within the broader scope of Anti-Money Laundering (AML) policy.
The below document types are acceptable address proofs, however, they are not sufficient on their own - we require the address proof to be certified as a true copy of the original.
This means, you will need to take the address proof to any professional to be 'certified' e.g. Attorney, Accountant, Broker, Auditor, Medical Doctor, Bank Manager, Broker, Actuary etc. It is this certified address proof that you will need to email to verification@gluwa.com prior to pay out of funds.
The document must clearly show your name and must match the residential address you provided during user sign-up.
Single Document Address Proofs (must be issued/dated within last 3 months)
Utility bill/invoice (water or electric)
Bank statement
Letter/Certificate/Statement from a Tax Authority
Combination Documents Address Proofs (addresses must match and must be issued/dated within last 3 months where applicable)
Credit card statement + Driving license
Cell phone statement + Credit card statement OR Driving license
Lease agreement + Cell phone statement
Letter from medical doctor + credit card statement OR Driving license
Reference letter signed by licensed professional (e.g. Accountant, Lawyer, Actuary, Broker, Banker) + credit card statement OR Driving license
All documents must show a residential address.
If you're not sure about this step, please reach out to us at verification@gluwa.com.
No. The Fixed-Term Interest Account is available in most countries worldwide except for the United States. We are currently working with our partners to make our products available to U.S. citizens. Join our waitlist here to get notified when this happens.
Before making your investment into an FTA investment pool, you must submit an approval transaction specifying the amount you wish to invest. Please be aware that this will cost ETH, and that you can only have one outstanding investment approval at any time.
This approval transaction interacts with the FTA smart contract to 1) give it permission to draw the specified funds from your wallet and 2) provide the smart contract a way to uniquely identify you and your investment deposit.
The 'Available to Drawdown' balance is the amount you are able to draw down at that time. In other words, it is the total of your deposits that have matured, plus any interest you’ve earned.
The ‘Average Yield’ displays the average expected yield of all of your active FTA investment deals. It is calculated by weighting your investment total against their average expected returns (interest rate). Please note that it only measures your active deals (non-matured).
For example, if a user had three active investment deals with the following deal terms:
$10,000 USD - 12.5% APR
$10,000 USD - 20% APR
$20,000 USD - 15% APR
Their ‘Average Yield’ would be calculated as such:
{($10,000 * 12.5%) + ($10,000 * 20%) + ($20,000 * 15%)} / ($10,000 + $10,000 + $20,000 = $40,000) = 15.625%
The ‘Total Expected Interest’ displays your total expected interest earned when all of your active FTA investment deals mature. It is calculated by aggregating your expected returns across all of your active FTA investment deals. Please note that this figure only measures your active deals (non-matured).
For example, if a user had three active investment deals with the following deal terms:
$10,000 USD - 12.5% APR
$10,000 USD - 20% APR
$20,000 USD - 15% APR
Their ‘Total Expected Interest’ would be calculated as such:
($10,000 * 0.125) + ($10,000 * 0.2) + ($20,000 * 0.15) = $6,250 USD
Gluwa cannot provide any tax, legal or accounting advice. You should always consult your own tax, legal and accounting professional before engaging in any transaction.
We are required to collect tax information from you in the Subscription Agreement during Gluwa Invest user sign-up and verification.
It depends. Our fintech lenders’ have specific fundraising requirements, meaning there is a limit to how much you can invest in any one Fixed-Term Interest Account. The maximum investment amount available to you is based on the total investment cap remaining for any given investment round. Once this round is fully funded and the investment cap is reached, no further investment will be accepted until we open the next investment round.
An investment cap exists to ensure we can accurately match the supply of investment funds with the corresponding demand for liquidity from our fintech lenders, ensuring that we only raise as much as they need. This supports our business model and ensures we can grow sustainably while finding the best impact investments out there!
