Some key take-aways to keep in mind:
- Users participating in Gemini Earn are making a decision to lend their funds to fully disclosed, institutional borrowers. Currently, the only borrower that Gemini has decided to partner with is Genesis, but we expect to add additional borrowers to Gemini Earn over time.
- As your custodian, Gemini serves as your agent and facilitates the transfer of funds to borrowers and the transfer of principal and interest back to your Gemini account. However, Gemini is not your counterparty and does not insure or guarantee your principal.
- Loans are “callable” at will. Meaning, you do not commit to lend your funds for any minimum period of time and may request the borrower return your funds at any time.
- Interest is paid in-kind, in the form of the digital asset you are lending.
- Interest rates are variable, subject to change based on demand from borrowers, and are generally updated monthly.
- In most cases, you are entitled to forks and airdrops on your loaned assets even while they are with the borrower. However, you will generally not be able to utilize assets for staking, delegation, voting or similar governance functions while they are on loan. See section 7 of the Terms of Agreement for more information.
- Gemini is required to share limited personal information, such as your name, date of birth, state and country of residence with the borrower in order to satisfy “know-your-customer” requirements. This information is used solely to facilitate the loan and allow you to earn interest.
- Gemini charges an agent fee. This fee is disclosed on our fee schedule page and is already included in the rates displayed in Gemini Earn, so you will always earn the published rate in the app. Gemini’s fee will never exceed the interest you earn on an asset. Agent fees are subject to change, and we will notify you any time there is a change in the APY you are earning.
- You are responsible for any tax obligations incurred through your transactions in Gemini Earn. Gemini does not provide tax advice, please consult a tax professional for your individual reporting obligations. See also What tax information does Gemini provide for Earn.
- Gemini Earn only supports assets that are listed for trading on the Gemini Exchange. If Gemini were to delist an asset from the Exchange, it would also be removed from Earn and all applicable loans would be called back.
Full copy of the Terms and Authorization agreement can be found here.