Loan Service Agreement

This Loan Service Agreement (“Agreement”) is made between Busha Digital Limited (“Busha”, “We”, “Us”, or “Our”), a company duly incorporated under the laws of the Federal Republic of Nigeria, and You, the individual or entity applying for or using Busha’s crypto-backed loan product (“Loan Product”) through the Busha mobile application, website, or any related digital infrastructure (“Platform”). This Agreement governs the terms on which Busha makes the Loan Product available to You and the terms on which You are permitted to obtain and maintain a Loan using Supported Collateral Assets.

By requesting a loan, pledging collateral for a loan, or otherwise interacting with the Loan Product, You acknowledge that You have read, understood, and agree to be legally bound by this Agreement. If You do not agree, You must not use or access the Loan Product in any manner.

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Purpose 

This Agreement applies exclusively to the Loan Product and forms part of the Busha General Terms of Use available at https://www.busha.io/terms-of-use. Where there is any inconsistency between the two documents, the provisions of this Agreement shall take precedence with respect to loan issuance, management, maintenance, security, repayment, enforcement, risk management and liquidation. All capitalised terms used but not expressly defined herein shall bear the meanings assigned to them in the General Terms of Use.

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Acceptance, Authority and Legal Capacity

By continuing to use the Loan Product, You confirm that You have full legal capacity to enter into this Agreement and that no law, regulation or contractual obligation prevents You from doing so. 

You are solely responsible for ensuring that Your use of the Loan Product complies with all applicable laws including but not limited to taxation, digital assets usage and borrowing regulations.

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Nature of Loan Product

The Loan Product allows You to access and or obtain flexible loans by pledging approved digital assets as collateral. These loans do not follow the structure of traditional bank loans and do not impose a fixed repayment date. Instead, You may repay the entire outstanding principal or reduce it partially at any time. Your loan remains in good standing so long as You meet Your monthly interest obligations and preserve the value of Your Collateral within the acceptable Loan Collateral Percentage. The Loan Product is currently limited to Bitcoin (BTC) and Tether (USDT), although Busha retains the sole discretion to introduce or remove supported assets at any time.

A Loan becomes active only upon Busha’s confirmation that all eligibility, collateral, risk  and compliance requirements have been satisfied. Until such confirmation, Busha is under no obligation to issue any Loan and may decline or suspend any application it has received at its sole discretion and all such decisions are final. 

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Eligibility Requirements

Access to the Loan Product is limited to Users who have maintained an active Busha account for a minimum period determined by Busha, which shall not be less than three months and may extend to six months depending on Our risk and compliance considerations. 

Busha shall determine, in its absolute discretion, whether a User meets the eligibility threshold, taking into account trading activity, account behaviour, verification status and any compliance-related findings we believe is necessary to make such determination. The determination of eligibility shall be final, and Busha is not required to disclose its assessment criteria or risk considerations.

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Collateral, Security Interest and Loan Collateral Percentage

To obtain a Loan, You must pledge Supported Collateral Assets into Your Busha Wallet. The level of funds available to You, the terms of borrowing and the level of risk associated with the Loan will depend on the aggregate market value of Your Collateral as well as the Loan Collateral Percentage applicable at the time of borrowing.

When applying for a Loan on the Busha platform, You will be shown the Loan Collateral Percentage and the corresponding liquidation point(s). These values may fluctuate over the life of the Loan, particularly in response to Your consistency in meeting monthly interest obligations or making repayments toward the principal. Consistent and timely payments typically result in more favourable collateral percentages and reduces the risk of liquidation.

By pledging Collateral, You grant Busha a first-priority, continuing, and irrevocable security interest in the Collateral  assets. You authorise Busha to hold, manage, administer, restructure, convert, rehypothecate, lend, transfer or otherwise utilise the Collateral as may be required for liquidity, risk management, operational or regulatory purposes. You shall however not be entitled to any profit or yield generated from dealing with the Collateral Asset for the period the loan is pending. 

From the moment Collateral is pledged, You shall not withdraw, transfer, assign, encumber or create any interest whatsoever in the Collateral until the Loan has been fully repaid and Busha confirms the release of the Collateral.

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Interest Structure and Monthly Charges

Loans attract monthly interest charges for as long as the Loan remains active. Interest rates are determined solely by Busha and depend on prevailing market conditions, the nature of the Collateral and the exchange rate volatility between the Collateral and the Loan currency. Busha does not guarantee that interest rates will remain constant and You acknowledge that such rates may be revised periodically. 

Monthly interest shall be deducted from Your fiat balance; if insufficient, You expressly authorise Busha to deduct any outstanding interest from Your Collateral. Any such deduction will reduce the value of the Collateral securing Your Loan and may increase Your Loan Collateral Percentage, bringing You closer to the liquidation point.

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Repayment Obligations

You may repay the principal amount of Your Loan, in whole or in part, at any time without penalty. However, You must pay monthly interest on or before the due date communicated to You. Busha may issue reminders concerning upcoming interest dates or increasing collateral risk, but the non-delivery of reminders does not affect Your obligations or on Busha’s rights.

You remain fully and solely responsible for ensuring that Your account contains adequate funds for monthly interest deductions and for monitoring Your Collateral’s risk position.

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Default and Consequences 

A default occurs immediately if: 

1. You fail to pay monthly interest when due;
2. You breach any provision of this Agreement; or 
3. Busha detects activity that poses fraud, compliance, security or operational risk.
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If You default on Your interest payment, you agree that Busha may without prior notice liquidate such portion of Your Collateral as may be required to recover the unpaid/outstanding amount. This reduction in Your Collateral increases the risk associated with Your Loan and may materially elevate Your Loan Collateral Percentage.

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Liquidation Events 

Busha is obligated to safeguard the principal loan amount. You therefore agree that once Your Loan Collateral Percentage reaches or exceeds the liquidation point, Busha shall have the immediate right to liquidate all or part of Your Collateral without notice to You.

Busha may also liquidate Your Collateral if it reasonably believes that doing so is necessary to 

1. protect Busha’s financial interests;
2. prevent fraud;
3.  comply with law or regulation; or
4.  respond to extreme market volatility. 
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If Busha reasonably believes Your Collateral or fiat were obtained through fraud or unlawful means, liquidation may occur immediately. You waive any right to challenge Busha’s liquidation decisions and any claims for losses arising directly or indirectly from such liquidation. 

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Blacklisting and Account Restrictions 

Busha may restrict, suspend or permanently blacklist Your account where necessary to manage fraud, regulatory, compliance or operational risks. Upon blacklisting, Busha may freeze or liquidate Collateral, suspend active Loans, prevent withdrawals, initiate liquidation or take any action We deem necessary to protect Us and Our Users. Busha may, but is not required to, disclose the reasons for blacklisting unless required by law.

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Risk Disclosure and Indemnity

You acknowledge that digital asset loans involve significant risks including market volatility, liquidity fluctuations, and potential technical disruptions. The Loan Product is not insured, guaranteed or regulated like traditional financial products. 

By using this Loan Product, You expressly agree to indemnify Busha, its affiliates, directors, officers, employees and agents against any loss, liability, damage, expense, cost or claim arising from Your use of the Loan Product. You further waive any claim for direct or indirect losses associated with market volatility, liquidation, technical failures, third-party actions or system downtime.

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Tax Responsibility

You are solely responsible for determining and satisfying any tax obligation associated with Your Loan, including reporting to relevant tax authorities.

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Disclaimers and Limitation of Liability

The Loan Product is provided strictly as-is and “as-available”. Busha makes no representations or warranties of any kind, whether express or implied, regarding the accuracy of market data, uninterrupted system performance or suitability of the Loan Product for Your financial needs.

Busha shall not be liable for indirect, incidental, exemplary, special, or consequential losses, or for any losses arising from market volatility, liquidation, unauthorised access, delays, downtimes, price slippage, system failures or communication errors. In all cases, Busha’s maximum liability shall not exceed the fees earned from Your Loan in the six months preceding the event giving rise to any claim.

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KYC and Information Retention

Your use of the Loan Product is subject to Busha’s AML/KYC Policy and Data Privacy Policy. Busha may require You to provide additional information at any time and may suspend Your Loan pending further due diligence. Busha is legally required to retain certain verification records even after Your Loan has been fully repaid.

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Governing Law and Dispute Resolution

This Agreement is governed by the laws of the Federal Republic of Nigeria. Any dispute that cannot be resolved amicably shall be submitted to mediation at the Lagos State Multi-Door Courthouse (LMDC) in accordance with the Lagos State Multi-Door Courthouse Law and Practice Directions on Mediation (or any amendments or modification to the same). The language of mediation shall be English, and proceedings may be conducted virtually upon agreement of the parties with the seat of mediation being Lagos State, Nigeria. Each Party shall bear its own cost for the proceedings. Notwithstanding the above provisions, nothing shall preclude either Party from seeking urgent relief or injunctive remedies from a Court of competent jurisdiction where grounds for urgency exist.

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Breach Notification and Security Responsibilities

If You suspect that Your account, collateral or Loan has been compromised, You must immediately notify Busha at support@busha.co. You remain responsible for safeguarding Your account credentials and ensuring the security of Your access devices.

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Assignment and Transfer

You shall not transfer or assign any right or obligation under this Agreement. Busha may assign or transfer its rights or obligations in connection with a merger, acquisition or corporate restructuring, provided such assignment does not materially impair Your rights under an active Loan.

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Force Majeure

Busha shall not be liable for delays or failures in performance resulting from events beyond its control, including market disruptions, cyber-attacks, regulatory actions, communication failures or natural disasters.

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Severability

If any term, provision, covenant or condition of this Agreement is held invalid or unenforceable for any reason, the remaining provisions of this Agreement shall continue in full force and effect as if it had been executed with the invalid portions eliminated. The parties agree to substitute for the invalid provision a valid provision, which most closely approximates the intent and economic effect of the invalid provision.

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Entire Agreement

This Agreement constitutes the entire agreement governing Your use of the Loan Product and supersedes all prior discussions, representations or understandings relating to the subject matter herein.

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Survival

All provisions that, by their nature, extend beyond the termination of this Agreement, including but not limited to indemnities, limitations of liability, collateral rights and dispute resolution shall continue in full force even after termination. 

This Loan Service Agreement has been digitally accepted by (Customer’s Name) on ….. December 2025.