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What is PassEarn?

PassEarn is a program where you deposit money and earn interest on it!

  • 4% for regular Passfolio accounts
  • 5% for PRO - Passfolio accounts

To understand the behind the scenes operation that makes PassEarn possible, check out this great article on how our new interest program works.

*United States citizens or residents may not use PassEarn.

Fees

There are no fees to use PassEarn. It is 100% FREE!

How much interest can I earn?

The interest rate you receive will be displayed in the app and reported in Annual Percentage Yield (APY) - the amount of interest you can earn in one year on your principal if you do not withdraw the interest and let it compound. The interest rate will change at most once every 30 days.

On May 1, 2022 the interest rates are:

  • Non-PRO Users - 4% APY
  • PRO Users - 5% APY

In addition, Mobius (MOBI) token holders can get up to a 15% interest rate bonus! For details see MOBI PassEarn interest rate bonuses. For example, if you hold $500 of MOBI in your linked wallet you get a 5% bonus so if you are a PRO User your APY would be 7.35%!

There is also an option to get your interest paid in MOBI and receive an additional 25% bonus! For example, if you are to be paid $100 in interest and choose to get paid in MOBI, you will receive $125 worth of MOBI! Note that if you choose to get paid in MOBI, the interest will not compound after it is paid out. Interest will compound during the month as it accrues, but when it is paid out in MOBI it will not be added to your principal because it is paid to your linked walled.

How is Passfolio able to pay so much interest?

US dollar bank savings account APY rates tend to be very low such as 0.60% so how can PassEarn pay 7% or more than 10 times as much?

The answer is the crypto markets - see our blog article for details.

How does interest accrue and when is it paid?

Interest accrues daily at 8:00am EST and is paid on the first of the month at 12:00pm EST. Interest accrual and distribution can take time to process so the updates may not show on your account immediately at the specified times.

A business day is defined as a New York Stock Exchange trading day.

Deposits before 8:00am EST on a business day, start earning interest on the next business day and that interest accumulates on the following business day.

For example, a deposit on Monday at 7:00am EST, earns interest starting Tuesday, and the interest will accumulate to your account on Wednesday at 8:00am EST.

Deposits after 8:00am EST or not on a business day start earning interest on the second following business day. For example, deposits after Friday 8:00am EST and before Monday 8:00am EST earn interest starting Tuesday, and the interest will accumulate to your account on Wednesday at 8:00am EST.

The amount used when calculating interest is the sum of 1) the smallest principal during the 24 hour interest period and 2) the accumulated interest.

For example, Monday at 7:00am EST if you deposit $100 and then at 9:00am you withdraw $50. On Wednesday when the interest accumulates, the principal amount will be $50.

Interest only accumulates on balances at least $0.01.

How is my interest calculated?

This is an example for illustration purposes of how interest accumulates and compounds. The example assumes a non-PRO user getting 5% APY. The below is illustrative and the system may round or perform floating point math differently.

First we calculate the Daily Interest Rate = (1+0.05)^(1/365) - 1 = 0.00013368061711349633

Assume Day 1 your principal balance is $100.

Interest on Day 1 = $100 * 0.00013368061711349633 = $0.013368061711349633 however we round to 8 decimals so you get $0.01336806.

You now have Principal = $100 and Accumulated Interest = $0.01336806.

Going forward we add the accumulated but unpaid interest to the principal when calculating the daily interest.

However, you can still only withdraw (loan recall) $100 because the accumulated interest is not paid until the 1st of the month.

Interest on Day 2 = ($100 + $0.01336806) * 0.00013368061711349633 = $0.013369848761860044 however we round to 8 decimals so you get $0.01336985.

You now have Principal = $100 and Accumulated Interest = $0.02673791.

If we assume Day 2 is the 1st of the month, after the interest is paid you will be able to withdraw (loan recall) $100.02 (you can’t withdraw amounts less than a penny). After withdrawal interest will stop accruing because we do not pay interest on balances less than $0.01.

Below is a table showing the interest accrual and compounding over 30 days.

Day Principal Daily Interest Previously Accumulated Interest
Day 1 100 0.01336806 0
Day 2 100.01336806 0.01336985 0.01336806
Day 3 100.02673791 0.01337164 0.02673791
Day 4 100.04010955 0.01337342 0.04010955
Day 5 100.05348297 0.01337521 0.05348297
Day 6 100.06685818 0.013377 0.06685818
Day 7 100.08023518 0.01337879 0.08023518
Day 8 100.09361397 0.01338058 0.09361397
Day 9 100.10699455 0.01338236 0.10699455
Day 10 100.12037691 0.01338415 0.12037691
Day 11 100.13376106 0.01338594 0.13376106
Day 12 100.147147 0.01338773 0.147147
Day 13 100.16053473 0.01338952 0.16053473
Day 14 100.17392425 0.01339131 0.17392425
Day 15 100.18731556 0.0133931 0.18731556
Day 16 100.20070866 0.01339489 0.20070866
Day 17 100.21410355 0.01339668 0.21410355
Day 18 100.22750023 0.01339847 0.22750023
Day 19 100.2408987 0.01340027 0.2408987
Day 20 100.25429897 0.01340206 0.25429897
Day 21 100.26770103 0.01340385 0.26770103
Day 22 100.28110488 0.01340564 0.28110488
Day 23 100.29451052 0.01340743 0.29451052
Day 24 100.30791795 0.01340922 0.30791795
Day 25 100.32132717 0.01341102 0.32132717
Day 26 100.33473819 0.01341281 0.33473819
Day 27 100.348151 0.0134146 0.348151
Day 28 100.3615656 0.0134164 0.3615656
Day 29 100.374982 0.013418190.014 0.374982
Day 30 100.38840019 0.01341998 0.38840019

How do I fund PassEarn?

You can move funds into PassEarn from your Stock Wallet, Crypto Wallet, or Bank Wallet. If you haven’t made a deposit yet you should deposit into the crypto wallet for fastest transfer:

Will my funds be insured?

Unlike the Stock Wallet and Bank Wallet (PassCard), PassEarn is not protected by Federal Deposit Insurance Corporation (“FDIC”) or SIPC insurance, or any other insurance. PassEarn also is not a depository account and loans made through PassEarn are not secured. PassEarn is not subject to authorization of the Brazilian Securities and Exchange Commission (Comissão de Valores Mobiliários) or the Brazilian Central Bank.

Passfolio Banking services are provided by our partnership with Synapse and its bank partner Evolve Bank & Trust. Evolve Bank is a member of FDIC (Federal Deposit Insurance Corporation), which protects assets of its customers up to US$250.000 by depositor, by depository institution, insured for each category of account ownership. For additional information about FDIC insurance coverage, visit the website https://www.fdic.gov/

Your Stock Wallet (and its security products and services) are provided by Passfolio Securities LLC, member FINRA/SIPC, and is insured by SIPC (Securities Investor Protection Corporation), which protects securities customers of its members up to US$500.000 (including US$250.000 for claims for cash). Explanatory brochure available upon request or at https://www.sipc.org/

What is the risk?

PassEarn is not insured so it is possible you will lose some or all of your principal. Currently Passfolio lends PassEarn funds out through Gemini Earn for which you can read about the risks here. In summary, the funds are lent out to accredited third parties that are vetted through a risk management framework that reviews their collateralization management process and on a periodic basis analyzes their cash flow, balance sheet, and financial statements to ensure appropriate risk ratios and financial health.

Holding Period

There is no holding period for funds transferred to PassEarn.

Limits and minimums

The minimum you can deposit into PassEarn is $1. Balances less than $0.01 do not earn interest. As May 5, 2022 the maximum you can deposit into PassEarn is $250,000. These limits and minimums can change and will be communicated in the app.

If you would like to deposit more than $250,000 please contact support https://www.passfolio.com/contact

Time to reach your account

PassEarn deposits from the crypto or bank wallet are generally processed immediately. Deposits from the stock wallet are often immediate during trading hours before 1:30pm EST and otherwise generally process the next business day.

PassEarn withdrawals (loan recalls) to the crypto or bank wallet are generally processed immediately. Withdrawals to the stock wallet are often immediate during trading hours before 1:30pm EST and otherwise generally process the next business day.

Can I withdraw my money from PassEarn at any time?

Yes, you can withdraw from PassEarn (recall your loan) at any time and when you do your crypto stops earning interest. Accrued but unpaid interest cannot be withdrawn until it is paid on the 1st of the month.

Can I use the funds in PassEarn to invest in Stocks/Crypto?

No, PassEarn funds cannot be used for any purpose until they are withdrawn (loan recalled) and transferred to a different wallet.

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MOBI PassEarn Interest Rate Bonuses

PassEarn users can get the below interest rate bonuses by holding Mobius (MOBI) tokens*.

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