FAQs

Have questions? You've come to the right place to learn more about Loop Crypto and crypto autopay. Check out answers to the most commonly asked questions.

What is Loop?

Loop makes it simple to enable autopay in web3. We do this by providing a suite of APIs, tooling, and smart contracts that enable a superior product experience in web3. We believe in a decentralized, interoperable future and are focused on automating crypto transactions to accelerate that future.

How does Loop work

Loop works similarly to traditional payments and uses a smart contract layer to process transactions on chain. Loop ingests requests to bill or pay a wallet and then processes those requests after checking that all validation and security parameters are met. Loop allows users to authorize automatic payments from an application of their choosing. This authorization can be for paying for a good or service whose details are agreed to and enforced by contracts living off-chain (e.g. terms of service), on-chain (e.g. smart contract), or somewhere in between. In all these cases, Loop preserves the trust assumption already present when agreeing to goods and services with the end application.

Is it safe to interact with the Loop Crypto contract?

Yes! Our contract was audited in May 2022, and we use the token allowance to protect the funds in users’ wallets. Unlike with traditional payment rails, web3 allows for users to always be in control of their assets. This is done by increasing / decreasing the payment allowance. Users can reduce their wallet's allowance with the Loop smart contract to 0 - effectively making it impossible for Loop to process a payment because we simply do not have authorization. Conversely, users can limit the maximum amount the Loop contract can ever touch - be it authorized or unauthorized through a malicious attack - by setting the allowance to a specific amount (e.g. 500 USDC). This cumulative amount is reduced as users interact with the contract. The allowance function sits on the token, not the Loop contract, and thus can never be tampered with or removed by Loop. It is inherent in the ERC-20 token standard. The user can manage their token allowance for Loop or any other dApp using revoke.cash.

What network is Loop available on?

Loop is currently live on Ethereum and Polygon. If you want to test with Loop, you can test with Loop on the Goerli Testnet.

Who pays for gas fees when I use Loop?

Users only pay for gas to authorize the contract or eventually cancel. Users never pay for gas for each autopayment. A third party pays for the gas fee to process transactions each period.

WTF is wETH and how do I get it?

wETH is wrapped ETH. ETH itself is not an ERC-20 token but wETH is. Our smart contracts only work with ERC-20 tokens, thus, you have to “wrap” ETH to turn it into wETH if you desire to use ETH to make a payment. Learn more here.

You can trade ETH for wrapped ETH (WETH) on any AMM such as Balancer or Uniswap. You will still need ETH in your wallet to pay for any gas fees. Loop makes it possible to unwrap ETH before it is sent to its final destination.

How can I get MATIC to pay for gas on Polygon?

There are two ways:
1) Bridge from Ethereum: You can move funds from Ethereum to Polygon using bridges like Hop Exchange or Polygon bridge.
2) If you already have tokens on Polygon, you can use gas swap to swap from another token into MATIC without paying gas (ie. you don't need MATIC).

What if my wallet does not have enough funds and/or the ERC-20 allowance is too low when my payment is due?

If a wallet doesn't have a sufficient balance and/or the allowance is too low to cover the cost of the automated transaction and there is no deposit, the transaction will not be processed. This is because a smart keeper will skip over the transaction rather than send a transaction the keeper knows will fail. If there is a deposit, the user will be canceled and the deposit will be lost. Companies are able to offer retry period. This means that if a user's payment fails, the user would have an opportunity to top up their wallet before another payment attempt is made.

To help prevent missed payments, Loop sends email reminders leading up to the payment due date. Customers will receive an reminder 3 days before their bill is due. The reminder email will notify the end user if her wallet has sufficient funds and a high enough allowance. If the wallet has insufficient funds or allowance, we will send another reminder email 24 hours and 6 hours before the payment is due.

Can I cancel a subscription?

Yes! Customers can cancel at any time. Continued access to the end product will depend on each company's internal configurations.

Are there refunds?

There are no refunds within the system; however, companies can always decide to send refunds directly from their own wallets to end customers.

Can I change the wallet I use to pay with after I subscribe?

Changing your wallet can be possible depending on the configuration of the end company whose service you are subscribing to. Please contact the company to update your wallet address.

Can I change what token I use to pay in?

Changing the token you pay in can be possible depending on the configuration of the end company whose service you are subscribing to. Please contact the company to update your preferred token of payment.

What is a deposit?

If the company a user is paying has opted to include a deposit, this means the user is required to set aside some funds at the time of subscribing. Companies use the deposit feature as an incentive for end users to keep a sufficient balance in their wallets. If a user ghosts the company or misses a payment, the company is able to claim these funds. 

Why do you collect my email address during checkout?

Companies who use Loop decide whether or not to collect email addresses. Providing an email allows customers to receive receipts, reminder emails when a payment is due, and cancellation notifications; it ultimately leads to more successful payments and a better experience. We store emails on our secure back-end servers. See our Terms of Service for more details.