Bitcoin-Backed Loans
— without monthly payments and without giving up ownership.
What are Bitcoin-Backed Loans?
Loan Terms at A Glance
50%
12% APR
1% of loan
(minimum $250)
1 year
Payments
Repayment
How it Works
Step 1: Apply
Step 2: Deposit Bitcoin
Step 3: Loan Issued
Step 4: Monitor Loan Health
Step 5: Repay and Release
Why borrow Against Bitcoin?
Clients use Bitcoin-backed loans for:
– Real estate purchases or bridge financing
– Business growth or working capital
– Emergency liquidity
– Opportunistic investments
If you believe in Bitcoin’s long-term value, borrowing allows you to access
liquidity without exiting your position.
Understanding Loan Health
What is LTV?
Example:
- $100,000 Bitcoin collateral
- $50,000 loan
- LTV = 50%
Margin thresholds
Margin Call Zone: 80-90% LTV
What triggers a margin call?
may be required to:
- Add additional Bitcoin collateral, or
- Partially repay the loan
If you don't respond
Collarteral Custody
Risk Disclosure
Key risks include:
Frequently Asked Questions
Do I still own my Bitcoin?
Yes. You retain beneficial ownership of your Bitcoin at all times. It is pledged as collateral, not sold.
Are there monthly payments?
No. Interest accrues over the loan term and is due at repayment or maturity.
Can I repay early?
Yes. You may repay the loan at any time with no prepayment penalties.
What happens if Bitcoin's price falls?
If your LTV approaches the margin threshold, you may be required to add collateral or repay part of the loan. If no action is taken, collateral may be liquidated.
How quickly are funds released?
Once collateral is confirmed, funds are typically disbursed within a short operational timeframe.
Is my Bitcoin lent out or rehypothecated?
No. Collateral is held securely and is not lent out or used for any other purpose.
Are custody fees charged on loan collateral?
No. Custody fees are waived while your Bitcoin is actively pledged as loan collateral.
Is this a taxable event?
Borrowing against Bitcoin is generally not considered a sale, but tax treatment depends on individual circumstances. Consult a tax professional.
How do I monitor my loan health?
Your LTV ratio is displayed in real-time in your account dashboard. You can monitor Bitcoin price movements and see exactly how close you are to margin call thresholds. We’ll also notify you if your LTV approaches the margin zone.
What happens at loan maturity?
At the end of the 1-year term, you repay the principal plus accumulated interest. Your Bitcoin collateral is then released back to a wallet address you specify. You can also repay early at any time with no penalty.