Company: FLDDW
Filing Date: 2025-10-01
Form Type: 8-K
Source: 0001193125-25-226833
Chunk: 1

Company: Fold Holdings, Inc.
Filing Date: 2025-10-01
Form: 8-K
Item: Item 1.01
Chunk 1
---
er’s bitcoin with a value at least equal to the Initial Collateral Level of the Loan Assets (as each such term is defined in the Facility) as set out in the Loan Term Sheet (the “ Collateral”). Two Prime receives a continuing, first-priority security interest in the Collateral, but may not lend, invest, re-pledge, rehypothecate, or otherwise use or encumber the Collateral, and may access the Collateral only in accordance with the MLA.

In connection with the MLA and as a condition to funding, the Borrower entered into a tri‑party Account Control Agreement (the “ ACA”) with Two Prime, as the secured party, and BitGo Trust Company, Inc. as custodian (the “ Custodian”) governing custody and control of Collateral for the Facility. Under the terms of the Facility, all Collateral shall be deposited with the Custodian.

Collateralization levels, margin mechanics, and liquidation risks:

The Initial Collateral Level (as defined in the Loan Term Sheet) is 250% for the first advance. If the collateralization ratio falls below the Collateral Call Level (as defined in the Loan Term Sheet) of 175%, Two Prime has the right to require the Borrower to contribute additional Collateral to the Custodian up to the Initial Collateral Level. If the Collateral Level (as defined in the Facility) falls below the “ Liquidation Level” (as set forth in the Loan Term Sheet), an automatic event of default is triggered and Two Prime shall have the right to instruct the Custodian to liquidate Collateral, without prior notice to the Borrower. If the ratio of Collateral to the Loan Assets (as defined in the Facility) exceeds the “ Collateral Refund Level” set forth in the Loan Term Sheet, the Borrower may request return of Excess Collateral (as defined in the Facility).

In the event that Two Prime, in its sole and absolute discretion, determines that there is any regulatory or liquidity risk in relation to, or litigation against the issuer of, the Digital Assets (as defined in the Facility) provided as Collateral, or in the event the value of the Collateral (based on the Blended Spot Rate, as defined in the Facility) decreases by 25% or more within a twelve hour rolling period, Two Prime has the right to, by notice to the Borrower, require the Borrower to prepay all or a portion of the Loan Balance (as defined in the Facility)