Open End Loan Plan and Lending Agreements

This Open End Loan Plan Agreement and Lending Agreement (“Agreement”) covers Bitcoin Builder’s open end loan Plan, provided by Jones Loans, Inc. The Plan includes loans secured by personal assets such as bitcoin.

This Loan is made persuant to the terms of California State Financial Code, Division 9. (California Finance Lenders Law), Article 5. (Open Loan Programs), Sections 22450-22467.

In this Agreement, “I” refers to any person who requests or agrees to repay credit and/or who pledges collateral, as the context indicates. “You” refers to Jones Loans, Inc.

Not all terms in this Agreement apply to all subaccounts. I will read this entire Agreement carefully, taking note of the terms that apply to the accounts that I have and the obligations I have undertaken.

Whenever I establish a new account under this Plan, you will disclose to me in writing: (a) the interest rate in effect on my account when it is established; (b) whether the interest rate on the account is fixed or variable; and (c) if the interest rate is variable the following: (i) the margin that will be added to the index to determine the variable interest rate, (ii) the then current value of the index; and (iii) any lifetime minimum or maximum interest rates that can apply to the account.

Each person who signs a request for credit under this Plan is obligated to meet the terms of this Agreement.

A. Loan Advances
I can request any advance on an account by authenticated Internet request, at Bitcoin I will do so by either requesting a check for the loan proceeds payable to me at my address in your records, or by attempting an asset trade that would require loan proceeds to complete. Deposit of loan proceeds to my account or my cashing of a loan check will constitute my acceptance of the loan advance and my consent to the terms of this Agreement.
I agree that I will not use or allow others to use Jones Loans, Inc. credit for illegal transactions such as illegal online gambling. You may refuse to approve a transaction that you reasonably believe to be illegal. However, responsibility for determining whether a transaction is legal rests with me. I cannot use the actual or alleged illegality of an authorized transaction as a defense to my obligation to pay it. Authorized use of my credit for illegal transactions will be grounds for termination of my credit privileges.
My personal line of credit will be a open-ended loan account. This means that I can borrow the full amount of my approved credit limit, repay the principal in full or in part, and borrow again up to my maximum limit, as long as I remain creditworthy and a member in good standing. To be in good standing, I must not be in breach of any obligation that I have to Bitcoin Builder or Jones Loans, Inc. Future advances on secured accounts are possible, but I may be required to submit a written or authenticated electronic or telephone request for an advance, provide updated credit information, and/ or provide additional security.
You can refuse to give me a loan advance. Among the reasons you can refuse to give me a loan advance are your having determined that my financial circumstances or creditworthiness have materially declined, my already having borrowed up to my credit limit on the account I attempt to access, my default on an obligation to the you, or lack of funds available to make loans. As long as you comply with fair lending laws, you have discretion to grant credit to me on one account but deny credit on another account.

B. Responsibility For Payment
Each person who requests credit is responsible for paying all amounts borrowed under this Plan. Persons who use credit made available under this Plan are also responsible for repaying amounts that they have borrowed under this Plan. Each applicant remains responsible for paying all sums borrowed under this Plan, even if another person has been ordered to pay the debt by an agreement or order to which Jones Loans, Inc. is not a party, such as a divorce decree. Any release from the obligation to pay amounts owed under this Plan will be valid only if (a) in writing and signed by an authorized Jones Loans, Inc. employee or (b) pursuant to a court order in an action to which Jones Loans, Inc. is a party.

C. Credit Limits
You will set credit limits for me on each account established for me under this Plan. You may review my accounts under this Plan from time to time. By establishing any account under this Plan, I authorize you to check my credit with third parties such as consumer reporting agencies and to report your credit experience with me to others. As part of your review process, you may ask me to supply current financial information, increase or decrease my credit limit, adjust my interest rate or variable rate formula, or close one or more of my accounts to future advances. If you take an action that will adversely affect me, you will give me notice required by law. I can request a credit limit increase by submitting an application in writing via https://www.Bitcoin All limit increase requests are subject to Jones Loans, Inc. approval.

D. Repayment Terms
I promise to pay you online, at your office, or any address you designate, in U.S. Dollars or Bitcoins, using payment instruments drawn on U.S. financial institutions, all sums loaned to me or to others I have authorized to obtain credit under this Agreement, plus a Finance Charge that you will determine as disclosed in this Agreement. You can accept payment instruments bearing legends such as “payment in full” without waiving your rights. The Finance Charge is the amount of money that I pay for the money that I borrow. The finance charge is calculated based on a Daily Periodic Rate.
Finance Charge Calculation.
On each account under this Plan, the interest component of the Finance Charge is determined daily based on the unpaid principal balance of funds loaned to me. Each day, you determine the balance outstanding on the account by adding any new advances or charges to the previous day’s balance and subtracting any payments and credits. Then you multiply the day’s balance by the Daily Periodic Rate (1/365 of the Annual Percentage Rate) applicable to the account to determine the interest component of the Finance Charge for the day. The interest Finance Charges for each day of the billing cycle are added together to determine the total interest component of the Finance Charge for that account during that billing cycle.
When you approve an account under this Agreement, you determine the interest rate that will apply to my account applying your loan policies in effect at the time. Among the factors that can affect my interest rate are my credit history and the type of account I request. The fixed or variable ANNUAL PERCENTAGE RATE assigned to any account established for me under this Agreement will be disclosed to me in writing before I become obligated. If the interest rate is variable, the written rate disclosure I receive will also tell me (a) the name of the external index to which the variable rate is tied, (b) the index value at the time the account is established, (c) the margin that will be added to the index to determine the variable rate, (d) the frequency with which rate changes can occur, and (e) any lifetime maximum or minimum rates applicable to the account.
Whether an account under this Agreement is designated as fixed-rate or variable-rate, the Board of Directors of Jones Loans, Inc. can authorize a change in the fixed rate or variable rate formula. If this happens, you will give me at least 15 days’ advance written notice of the change. After the change takes effect, the new rate or variable rate formula will apply to my existing balance as well as to advances.
Payments will be applied first to any fees and charges such as late charges, then to unpaid periodic Finance Charges, and finally to principal.
I am responsible for ensuring that I have adequate funds available to make my payments under this Plan when they are due.
I can prepay my outstanding balance on any account, in full or in part, without incurring a prepayment penalty.
There are no minimum monthly payments. However, if the ratio of my loan to the value of my assets securing the loan becomes too high, I acknowledge that you have the right to sell some or all of my assets securing the loan at any time and without prior notice to me.
You will provide electronic statements of all accounts I have under this Agreement. Those statements will give me information required by law on all accounts I have under this Agreement, including but not limited to the amounts of my required payments, the dates that they are due, and the current ANNUAL PERCENTAGE RATES and Daily or Monthly Periodic Rates applicable to my accounts.
If I exceed my authorized credit limit, I agree that if you ask me to do so in writing, I will immediately make a lump-sum payment sufficient to reduce my balance to an amount within my approved limit. I agree that you may also sell some or all of my assets securing my loan at any time and without prior notice to me.

E. Security Interests
I affirm your right under California Financial Code Sec. 14856 to impress a lien on all assets on deposit with Jones Loans, Inc. in which I have an interest to the extent of my obligations to you. I further give the following express consent: In consideration for and as a condition of Jones Loans, Inc. making credit available to me, I agree that if I do not maintain the required loan to asset ratio, you can take any assets on my account, unless prohibited by law, to recover all or part of my delinquent obligation. This consent is not a pledge by me of any assets and will not affect my right to withdraw funds prior to my default and your exercise of your rights under this consent. I expressly agree that the rights given to Jones Loans, Inc. by this paragraph apply to all assets I voluntarily deposit to Bitcoin Builder, unless such funds are exempt from creditors’ remedies under applicable law. Your exercise of your rights under this paragraph will not be an election of remedies.

F. Changes in Terms
Changes in variable interest rates may be made without notice. They apply to the entire unpaid principal balance at the time of the change, as well as to new advances.
You have the right to change other terms of this Agreement or specific accounts by giving me proper advance written notice. If I do not pay off and close the account prior to the change in terms effective date, the change in terms will apply to existing balances as well as new advances.

G. Honest Dealing
I agree to promptly notify you of any information that affects my creditworthiness or ability to pay off amounts I borrow under this Plan, including but not limited to a change in my name, address or employment. I will not apply for or accept any loan advance if I have reason to believe that I will be unable to make the required payments. By requesting or accepting an advance, I warrant that I know of no reason creditors would make claims against me or why I would be unable to make my required payments at the time of the advance or in the future.

H. Default – Lien – Acceleration
If I fail to make any of the agreed payments, I agree that you can apply any assets in which I have an interest (except where prohibited by law) at any time to pay off, in full or in part, my delinquent loan. Your right may arise under the lien laws or by my consent or both, but is not a pledge by me of any assets. Except for assets specifically pledged as security for a loan advance, I will have full access to assets before you impose a lien on them.
If I default on my loan payments or breach any other material provision of this Agreement or other Agreements I have with you, you may declare the entire unpaid balance due and payable immediately without notice. Unless prohibited by law, a default on one account under this Plan or a default on any other obligation to Jones Loans, Inc. will be considered a default on all obligations to Jones Loans, Inc. Even if you accept a late or partial payment, you are not waiving your right to accelerate payment of the loan and declare the entire unpaid balance due. The interest called for by this Agreement will continue to accrue even after my default and acceleration until the amount I owe is paid in full.
My default will give you the right to terminate this Agreement or any account under this Plan.
When pursuing one remedy to deal with my default you are not giving up your other rights.

I. Collection Costs
If I default, I agree to pay reasonable collection costs you incur before taking legal action. If you take legal action to collect what I owe or otherwise enforce your rights, I agree to pay your reasonable attorney’s fees and court costs in addition to any other amounts the court finds that I owe you. I will pay your attorney’s fees whether the legal action you take is a collection lawsuit, a proceeding to protect your interests if I become a debtor in bankruptcy, a judicial or non-judicial foreclosure of personal or real property, or another type of legal action. I agree that any collection costs can be added to my loan balance and accrue interest at the rates called for by this Agreement until paid in full.

J. Termination
You can terminate this Plan or any account at any time by sending me a notice in writing. The notice will tell me the reasons for the termination. Reasons you can terminate this Plan include (a) my failure to make required payments, (b) your having a reasonable belief that I am unable or unwilling to pay what I owe you, (c) a request by a borrower to be released from future obligations under this Plan, or your discontinuing this Plan or any account under this Plan. A significant increase in my obligations, my filing for bankruptcy relief, my unemployment and my death are all examples of circumstances that could lead you to take this action.
You will terminate this Plan or any account under this Plan if I ask you to do so.
Termination by me or you of this Plan or any account established under this Plan will not relieve me of my obligations to pay what I owe and otherwise comply with the terms of this Agreement as to amounts I owe Jones Loans, Inc.

K. General Terms
The terms of this Agreement and any disbursement documents or notices sent to me announcing that my credit request was approved must be read together as part of the whole agreement. When the singular is used, the plural is implied if there is more than one obligor. If any part of this Agreement is found to be invalid, the other parts will remain in effect. Applicable federal and California law will govern this Agreement to the extent permitted by law, without regard to conflict of law principles. The language of this Agreement shall not be construed against either party.
NOTICE: Important information regarding my rights to dispute billing errors and terms and conditions of the open-end loan security agreement are found below.

L. Security Agreement
“Property” means assets (for example, US Dollars, Bitcoin, or other crypto-currencies) that I pledge as security for repayment of loan advances I receive under this Agreement.
I agree that there will be no other claims or interests in the Property other than your security interest. I agree to take, at my own expense, any steps necessary to show you as the sole lienholder of the Property. I understand that you do not guarantee the physical or legal condition of property, whether or not loan proceeds were used to purchase the Property, and whether or not you obtained an appraisal, title report or similar document or information prior to making the decision to loan me money. I must take up any disputes regarding the condition of the Property with the seller or other third parties whose actions or failures to act adversely affected the physical or legal condition of the Property. If I do not take the necessary steps to show you as sole lienholder, you can, at your option, (a) declare my loan in default and demand that I immediately pay in full all sums advanced to me; (b) take the necessary steps and add your costs associated with doing so to my loan balance, where they will accrue interest at the rate called for by this Agreement; or (c) increase the interest rate on the account for which I pledged the property as security to the highest rate you are then charging for personal lines of credit.
I will furnish you with any documents that you reasonably request regarding the Property.
I will not sell the Property or give additional security interests in the Property without either getting your permission or paying my loan balance in full.
I will not use the Property for any unlawful purpose or engage in conduct that would subject the property to seizure by a government agency.
You can require me to provide additional security if, in your reasonable opinion, the value of the Property is insufficient in relation to the credit limit or unpaid balance of the related account.
If you make proper written disclosures to me, the Property pledged to secure one loan advance under this Agreement will also secure other account balances I have under this Agreement at the time of the pledge and will secure other advances I take in the future.
If I make any false statements to you to obtain credit under this Agreement or if I default on any obligations under this or other agreements I have with you, you may, in addition to your other rights, take possession of the Property and, after giving legally required notice, sell the Property in a commercially reasonable manner.
If I default, I agree to deliver the Property to you at your request. If I fail to deliver the Property to you, I authorize you or your agent to take possession of it without advance notice to me and without obtaining a court order. I waive any rights to claim that in taking the Property you interfered with my legal rights to any extent.
I understand that if the proceeds of the sale do not meet all of your expenses of taking and selling the Property, including costs of notices, reasonable attorney’s fees and like expenses, as well as the total unpaid balance of the loan, earned finance charges and unpaid costs, I will have to pay you the remaining delinquent balance on demand. This amount is called the “deficiency.” If I do not pay the deficiency, you can sue me to collect it, and I must pay, in addition to the deficiency, your reasonable attorney’s fees and costs of suit.
If the proceeds of the sale result in a surplus, you can apply the surplus to any other delinquent obligation I have to you. If I have no other delinquent obligations, you will deposit the surplus funds to my account or issue a check to me for the surplus proceeds.
I appoint you my attorney-in-fact to do anything reasonable and necessary to protect your security interest in the Property.

This notice contains important information about my rights and responsibilities under the Fair Credit Billing Act.

State and Local Law
The following summary of my rights under federal law does not cover any rights I may have under state or local law. If, under state or local law, I have a longer period of time in which to send an inquiry to you concerning my statement, reliance on any such longer time period could result in my losing important rights that I could preserve by acting more quickly under federal law. State or local provisions, if any, only become operative after expiration of the time period provided by Federal Reserve Regulation Z for submitting proper written notice of an error.

Notifying You in Case of Errors or Questions About My Statement

If I think my statement is wrong, or if I need more information about a transaction on my statement, I will contact you via a method listed on my statement. I will contact you as soon as possible. You must hear from me no later than 60 days after you sent me the first statement on which the error or problem appeared.
I will tell you:
My name and account number.
The amount of the suspected error.
A description of the error, and, if I can provide one, an explanation of why I believe there is an error. If I need more information, I will describe the item I am not sure about.

My Rights and Your Responsibilities After You Receive My Written Notice

You must acknowledge my notice within 30 days, unless you have corrected the error by then. Within 90 days, you must either correct the error or explain why you believe the statement was correct.
After you receive my notice, you cannot try to collect any amount I question, or report me as delinquent. You can continue to bill me for the amount I question, including finance charges, and you can apply any unpaid amount against my credit limit. I do not have to pay any questioned amount while you are investigating, but I must still pay the parts of my statement that are not in question.
If you find that you made a mistake on my statement, I will not have to pay any finance charges related to the questioned amount. If you did not make a mistake, I may have to pay finance charges, and I will have to make up any missed payments on the questioned amount. In either case, you will send me a statement of the amount I owe and the date it is due.
If I fail to pay the amount you think I owe, you may report me as delinquent. However, if your explanation does not satisfy me and I write to you within 10 days telling you that I still refuse to pay, you must tell anyone to whom you report me that I have a question about my statement. And you must tell me the name of anyone to whom you reported me. You must tell anyone to whom you report me that the matter has been settled between us when it finally is.
If you don’t follow these rules, you cannot collect the first $50 of the questioned amount, even if my statement was correct.

Bitcoin Builder LIABILITY

If you do not properly complete a transaction according to my agreement with you, you will be liable for my direct losses or damages. However, there are some exceptions. You will not be liable if:
1. Through no fault of yours, I do not have sufficient available credit to make the transaction.
2. Circumstances beyond your control such as fire, flood, electrical failure, or malfunction of the central data processing facility prevent completion of the transaction despite your reasonable precautions.
3. My membership is not in good standing due to my breach of a material obligation to Bitcoin Builder or Jones Loans, Inc..
4. You establish other lawful exceptions and give me any advance notice of them that may be required by law. In no event will you be liable for indirect, consequential or punitive damages.


In order to enable lending, you are required to read, and acknowledge your acceptance of the Disclosure of Risks of Leveraged Trading document. Please read the following document and acknowledge your acceptance at the bottom.

This disclosure, based on a Financial Industry Regulatory Authority ("FINRA") model disclosure, discusses the risks inherent in trading in a leveraged account, including the fact that Bitcoin Builder may liquidate positions in an under-capitalized account without notice to the customer.
Before trading with lent funds, you should carefully review the lending agreement provided by Bitcoin Builder and you should consult Bitcoin Builder regarding any questions or concerns you may have.


Bitcoin Builder is furnishing this document to you to provide some basic facts about purchasing assets with lent funds, and to alert you to the risks involved with trading in a margin account. “Leveraged trading” can mean engaging in a transaction in which assets are purchased partially through an open-ended loan extended to you by Bitcoin Builder, for which your assets act as collateral.

When you purchase assets, you may pay for them in full or you may borrow part of the purchase price from Bitcoin Builder. If you choose to borrow funds from Bitcoin Builder, you must enable lending on your account. The assets on your account are Bitcoin Builder’s collateral for the loan to you. If the assets in your account decline in value, so does the value of the collateral supporting your loan, and, as a result, Bitcoin Builder can take action, such as sell any assets in any of your accounts held with Bitcoin Builder or require deposits (“margin calls”) in order to maintain the required equity in the account.

You should understand that pursuant to the Bitcoin Builder Lending Agreement, Bitcoin Builder generally will not issue margin calls, that Bitcoin Builder will not credit your account to meet intraday leverage deficiencies, and that Bitcoin Builder generally will liquidate positions in your account in order to satisfy leverage requirements without prior notice to you and without an opportunity for you to choose the positions to be liquidated or the timing or order of liquidation.
In addition, it is important that you fully understand the risks involved in trading assets with lent funds. These risks include the following:
You can lose more funds than you deposit in your account. A decline in the value of assets that are purchased with leverage may require you to provide additional funds to Bitcoin Builder to avoid the forced sale of assets in your account(s).
Bitcoin Builder can force the sale of assets in your account(s). If the leverage in your account exceeds maximum requirements, or Bitcoin Builder decreases its maximum “house” leverage limits, Bitcoin Builder can sell the assets in any of your accounts held at the firm to cover the deficiency. You also will be responsible for any shortfall in the account after such a sale.
Bitcoin Builder can sell your assets without contacting you. Some investors mistakenly believe that a firm must contact them for a liquidation to be valid, and that the firm cannot liquidate assets in their accounts to meet leverage requirements unless the firm has contacted them first. This is not the case. As noted above, Bitcoin Builder generally will not issue margin calls and can immediately sell your assets without notice to you in the event that your account has insufficient equity.
You are not entitled to choose which assets in your account(s) are sold to meet a margin call. Bitcoin Builder has the right to decide which positions to sell in order to protect its interests.
Bitcoin Builder can decrease its “house” maximum leverage requirements at any time and is not required to provide you with advance written notice. These changes in firm policy often take effect immediately. Your failure to maintain adequate equity in the event of a decreased maximum leverage requirement generally will cause Bitcoin Builder to liquidate assets in your account(s).
If Bitcoin Builder chooses to issue a margin call rather than immediately liquidating positions, you are not entitled to an extension of time on the margin call.