Frequently Asked Questions

1. What is Ambos?

Ambos is an application that allows you borrow fiat currency using your ETH as collateral. We focus on making the end-to-end loan process as simple as possible, but you retain full ownership and control of your funds.

2. How do I get started borrowing on Ambos? 


We designed the borrowing process to be as simple as possible: just create an account with your preferred method, follow the instructions to deposit assets to your Ambos wallet. Once you have funded your wallet, use the “loan” section, select the amount you want to supply as collateral and the amount of USD you want to borrow. Review your loan details, and confirm the transaction. You will instantly receive stablecoins into your wallet, which can then be converted to fiat! 



3. What are the costs associated with borrowing with Ambos? 


Loans accrue interest, at a rate set by the market (typically around 5% per year). Deposited ETH (where possible) earns a 3-4% staking yield each year, which will go towards offsetting your interest, see #15.-can-i-use-staked-eth for more info.

On top of this, Ambos charges a small fee during the loan process, which includes the cost of using the network. Please see Fees and Charges for more information. Lastly there may be additional charges for converting to and from fiat (see below).

4. What are the fees associated with converting to and from FIAT with Ambos?


The fees associated with on-ramping and off-ramping vary based on the rates offered at the current time by our partners. Currently, Ambos uses Transak to facilitate these exchanges, you can check out the current fees on Transak’s website: https://support.transak.com/en/articles/7845942-how-does-transak-calculate-prices-and-fees



4. How does Ambos Finance ensure the security of my investments? 


We deposit your funds into a lending protocol known as Aave. Aave is one of the largest and most secure protocols in the entire DeFi (Decentralised Finance) ecosystem and have safely processed billions of dollars in loans since 2017. We can think of no safer protocol to put your money, that's why we chose them.


5. Can I access Ambos Finance from mobile devices, and is there a mobile app available? 


Ambos is a mobile application, which can be installed on iOS or Android through our download page.

(At the time of writing, Ambos is not available on app stores.)

6. Is there a minimum amount I need to deposit in order to be able to use Ambos?


You can download and use Ambos for free and with no minimum deposit.

7. Are there any risks involved with using Ambos?


Taking out a loan inherently involves risk, and Ambos is no different. Because of this, we've created a dedicated Risks page so you can make an informed decision on whether an Ambos loan is right for you.

8.Can I repay my loan at any time, and what is the process for doing so?


Yes, you can repay your loan any time you want. You can repay a loan partially or in full. 
To repay a loan, just head to the “loans” section of the Ambos Finance app, scroll down and tap on “Repayment Options”. Choose if you want to repay with assets in your wallet or from an external source, select the amount and tap on “Repay Loan”. In a matter of seconds, you should see a “Repayment Successful” window.



9.How does Ambos Finance generate revenue, and how does it impact my returns?


Ambos charges fees detailed in Fees and Charges. Importantly, these fees are added to your loan, so your principal is not affected.

10.What happens to my investments if Ambos Finance goes out of business or is acquired by another company? 


Your Ambos wallet is non-custodial, which means you will keep complete ownership of your assets and your loans even if something were to happen to Ambos Finance. This means that, provided the loan is still active, you will always be able to withdraw your assets, repay your loans and take back the amount you supplied.

11. Why would I borrow against ETH instead of selling it?

If you sell ETH, you get 100% of the value of it today. If you borrow with Ambos, you get 50% of that value now plus you still get exposure to the upside of ETH increasing in price. If ETH doubles in value, you will be able to close out the loan and sell the ETH for a higher price.

12. Do I need to pass a credit check to qualify for a loan?

No. Because you must deposit more ETH than the value of the loan, you are already fully covered. We do not need to check your credit score or any other information.

13. Do I need to own Ether (ETH) to use Ambos?

ETH is needed to take out a loan, however, we allow purchasing of ETH directly in our application if you don't already have access to some.

14. Can I use ETH I already own with Ambos?

Absolutely. We support sending and receiving ETH and USDC from any other crypto wallet or exchange that allows transfers.

15. Can I use staked ETH?

Staked ETH is Ether that is used to secure the Ethereum network. This typically earns 3-4% per year in yields (paid in ETH).

Where possible, ETH will be staked for you by Ambos into a staking derivative - this partially offsets the interest that you pay on your loan.

16. What currencies do you support?

We convert your ETH into a loan in stablecoins (typically USDC) pegged to the US Dollar. Stablecoins can then be sold for any supported fiat currencies by our partner, Transak, or sent to an exchange of your choice.

17. What if I cannot repay the loan?

You will not be able to reclaim your deposited ETH until the loan is repaid. However, neither Ambos nor anyone else will be asking for the money back; you are already fully covered at the time the loan is made.

18. Do you support depositing other assets like Bitcoin?

Not yet, however we have plans to support BTC in the near future.

19. What if ETH drops in value?

When you take out a loan, we take a snapshot of the value of your ETH. Provided the value of that deposited ETH stays above a certain threshold, then nothing will happen. If ETH falls drastically, you may be liquidated to ensure lenders are paid off. See "What are Liquidations?" for more info.

20. What are Liquidations?

If the value of your ETH becomes too low, relative to the value of your loan + accrued interest, your ETH will be sold to ensure lenders are covered. This is known as a Liquidation. At that point, your loan is cleared: you no longer have to pay the original borrowed amount back, but you also no longer have access to the principal you deposited.

21. How am I secured without a private key?

When you login with Ambos, behind the scenes, a private key is created for you using our Auth network, which automatically shards and secures the key across multiple devices.

22. Why don't I just use Aave Directly?

Our focus is on providing a streamlined experience for a single purpose (borrowing fiat currency with ETH as collateral). We've focused on making that as simple and easy as possible but nothing is stopping you from using Aave or any other platform.

23. Why the name 'Ambos Finance'?

Ambos is a Spanish word meaning 'both', because Ambos lets you have it both ways - you are able to get cash out of your crypto without selling it and still have the upside of your crypto investments.

24. I have a question not covered by the above FAQs

Please reach out to us at [e-mail] or via the #support channel on our discord