Perfolio is a gold-backed lending platform. You buy gold (XAUT, where each token equals exactly 1 ounce of real physical gold stored in Swiss vaults), then borrow digital dollars (USDT, each worth exactly $1, convertible to your local currency) against your gold. No credit checks needed. No monthly EMI payments. No repayment deadlines. Your gold stays yours throughout. When you repay the loan, you get your gold back. It works like a modern digital gold pawn shop, but without the middleman, the paperwork, or the fees.

Gold (XAUT) is a digital gold token issued by Tether (the same company behind USDT stablecoins). Each gold token (XAUT) represents exactly 1 troy ounce of real physical gold, stored in LBMA-certified vaults in Switzerland. The gold reserves are independently audited every quarter by BDO Italia. Unlike gold ETFs, gold (XAUT) is redeemable for actual physical gold bars. Think of it as a digital certificate of ownership for gold in a vault: you own the gold, XAUT is your proof.

How does borrowing work?

Borrowing on Perfolio works in four simple steps. First, you buy gold (XAUT tokens) through the Perfolio app using your bank transfer or existing digital dollars (USDT). Second, you deposit your gold (XAUT) into the lending vault; think of this as locking your gold as security. Third, you receive digital dollars (USDT, worth $1 each) instantly, up to 77% of your gold's value. Fourth, you convert those digital dollars to your local currency (Indian Rupees, UAE Dirhams, Euros, etc.) and withdraw to your bank account. Your gold remains safely locked in the vault throughout. When you repay the loan, your gold is returned to you.

What interest rate will I pay?

Perfolio charges a variable interest rate starting from approximately 3% per year (APR, or Annual Percentage Rate). This means if you borrow $1,000 for a full year, you would pay about $30 in interest. The rate is not fixed; it goes up or down based on supply and demand in the lending market. You can see your current rate at any time in your Perfolio dashboard. There are no fixed monthly payments; interest accrues daily on whatever amount you have borrowed.

Are there repayment deadlines?

No. There are no repayment deadlines, no EMIs (equated monthly installments), and no fixed repayment schedule. You repay on your own terms, partially or fully, whenever you choose. You could repay after one week, one month, or one year. The only ongoing cost is interest, which accrues daily on your outstanding loan balance. Your gold collateral is returned to you as soon as the full loan amount plus accrued interest is repaid.

Where is my gold stored?

Your gold (XAUT tokens) represents physical gold bars stored in LBMA-certified (London Bullion Market Association) vaults in Switzerland. These are professional-grade precious metals storage facilities, the same standard used by central banks and institutional investors. The gold is fully insured. Tether, the issuer of XAUT, publishes independently audited reserve reports every quarter, conducted by BDO Italia, confirming that every gold token (XAUT) in circulation is backed by a real ounce of physical gold.

What fees does Perfolio charge?

Perfolio charges interest only on the amount you have borrowed, nothing else. There are no origination fees (fees for creating the loan), no account maintenance fees, no deposit fees, no withdrawal fees, and no hidden charges of any kind. You pay interest daily on your outstanding loan balance at the variable market rate, which starts from approximately 3% APR. If you borrow $1,000 for 30 days at 3% APR, you pay roughly $2.50 in total interest.

Is the lending protocol secure?

Perfolio uses an independently audited smart contract as its lending infrastructure. It is a non-custodial lending protocol deployed on Ethereum, one of the most widely used and tested blockchain networks in the world. Non-custodial means no single company (including Perfolio) can access or freeze your funds. The protocol has been independently audited by multiple leading security firms and handles billions of dollars in assets. All transactions are recorded publicly on the Ethereum blockchain, meaning you can verify every deposit, loan, and repayment yourself.

Is Perfolio a cryptocurrency app?

No. Perfolio is a gold lending platform that uses blockchain technology under the hood, similar to how Uber uses GPS technology, but you don't need to understand GPS to take a ride. You interact with gold and money, not with cryptocurrency. The blockchain ensures your transactions are transparent, secure, and instant.

What is USDT and how do I use it?

USDT (Tether USD) is a digital currency worth exactly $1. Think of it as digital dollars that you can send anywhere instantly. When you borrow on Perfolio, you receive USDT. You can then convert USDT to your local currency (Indian Rupees, UAE Dirhams, Euros, British Pounds, and more) through Perfolio's licensed payment provider and withdraw to your bank account.

What does 'digital gold' mean?

Digital gold means you own a token that represents real physical gold stored in a vault. Instead of keeping gold bars at home or in a bank locker, you hold a digital certificate (XAUT token) that proves you own that gold. The advantage: you can buy fractional amounts (as little as $10 worth), trade 24/7, and use your gold as collateral for instant loans. These are things you can't do with physical gold.

How does the lending technology work?

Perfolio's loans are powered by an audited smart contract, which is automated banking software that runs on the Ethereum blockchain. Instead of a bank officer processing your loan (which takes days and involves paperwork), the smart contract processes it in seconds with no human intervention. The protocol has been independently audited by multiple leading security firms and handles billions of dollars in loans.

What is LTV (Loan-to-Value)?

LTV stands for Loan-to-Value ratio. It's how much you can borrow relative to your gold's value. Perfolio allows up to 77% LTV. Example: if your gold is worth $10,000, you can borrow up to $7,700. The remaining $2,300 acts as a safety buffer in case gold price drops. A lower LTV means a safer position.

What happens if gold price drops while I have a loan?

If gold price drops significantly, your loan may become under-collateralized (meaning your gold is no longer worth enough to back your loan). In this case, the lending protocol may automatically sell some of your gold to repay part of the loan. This is called liquidation. Perfolio shows your 'health factor' in real-time so you can take action before this happens: either add more gold collateral or repay part of your loan.

Do I need to understand blockchain or crypto to use Perfolio?

Not at all. Perfolio is designed for people who want to use gold as a financial tool, not for crypto experts. You buy gold, you borrow money, you repay when you want. The blockchain technology works in the background to make everything faster, cheaper, and more transparent, but you never need to interact with it directly.

How to Borrow Against Gold Without Selling It

Why Borrow Against Gold Instead of Selling It?

Selling gold solves your immediate cash need, but it permanently ends your exposure to gold's long-term value. If gold appreciates after you sell, you miss the gain. You also pay capital gains tax in many jurisdictions, further reducing your proceeds.

Borrowing against your gold gives you cash today while preserving your gold position. You repay the loan when it suits you, then reclaim your full gold holding, which may be worth more than when you deposited it.

Step-by-Step: How to Borrow Against Gold on Perfolio

Step 1: Acquire Digital Gold (XAUT)

Perfolio uses gold (XAUT) as collateral, where 1 gold token (XAUT) = 1 troy ounce of physical gold in Swiss vaults. You can purchase gold (XAUT) directly in the Perfolio app using a bank transfer or existing USDT. There is no minimum order beyond the transaction gas fee.

If you already hold gold (XAUT) in a wallet, you can connect it to Perfolio directly.

Step 2: Deposit Your Gold (XAUT) as Collateral

Digital vault door with gold bars inside, representing smart contract collateral — Your gold (XAUT) is locked in a non-custodial smart contract, not held by any company

Once you have gold (XAUT), navigate to the Borrowing Vault in the Perfolio app. Select how much gold (XAUT) you want to deposit. Your deposit is locked in a non-custodial, audited smart contract on Ethereum mainnet, meaning no company, including Perfolio, can access your collateral. Only the repayment action unlocks it.

Step 3: Choose Your Loan Amount

Perfolio allows you to borrow up to 77% of your gold's current market value in USDT. This is called the loan-to-value (LTV) ratio. Borrowing at a lower LTV gives you a safety buffer: if gold's price dips, you are less likely to approach the liquidation threshold.

Example: 1 gold token (XAUT) worth $3,000 allows you to borrow up to $2,310 USDT at 77% LTV.

Step 4: Receive USDT Instantly

Once you confirm the transaction on-chain, USDT arrives in your Perfolio wallet immediately. From there, you can:

Withdraw to your personal wallet or exchange
Convert to your local currency via the in-app off-ramp
Use it directly in DeFi

Step 5: Repay on Your Terms

Golden key floating above an open padlock, symbolizing financial freedom — No deadlines, no penalties. Repay when it suits you and reclaim your gold.

There are no EMIs, no monthly deadlines, and no penalties for early or partial repayment. Interest accrues on the outstanding balance at the current variable rate (starting from approximately 3% APR). You can repay any amount at any time to reduce your interest burden and improve your LTV ratio.

When you repay the full loan plus accrued interest, your gold (XAUT) collateral is automatically released back to your wallet.

Understanding Liquidation Risk

If gold's price falls significantly and your LTV ratio rises above the liquidation threshold, the smart contract can liquidate part of your collateral to repay the loan. This is why it is important to borrow conservatively: do not borrow at the maximum LTV if you are worried about short-term price volatility.

Perfolio's app shows your current LTV in real time and sends alerts before you approach danger levels.

What Does It Cost?

You pay interest only on what you borrow. There are no origination fees, no account fees, no hidden charges. The variable interest rate is determined by supply and demand on the lending protocol, starting from approximately 3% APR.

Who Is This For?

Borrowing against gold works best for:

Gold holders who need short-term liquidity without liquidating their position
Anyone who wants to avoid the high interest of personal loans or credit cards
People in countries where gold is a primary savings vehicle
Investors who want to deploy capital without selling an appreciating asset

Want to understand the full picture? Read how Perfolio works end to end or explore our gold-backed loan product page.