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Frequently Asked Questions
How does borrowing against Bitcoin work?
You transfer Bitcoin to a qualified Canadian custodian as collateral and receive a loan in Canadian dollars—typically 50% of your Bitcoin’s value.
You keep full exposure to Bitcoin’s price. When you repay the loan plus interest, your Bitcoin is returned to you. No sale, no capital gains tax event.
Do I have to sell my Bitcoin to access liquidity?
No. You pledge your Bitcoin as collateral and receive a loan. Your Bitcoin stays intact, you maintain price exposure, and you avoid triggering a capital gains tax event. When you repay the loan, your Bitcoin is returned.
What are the loan terms?
– 50% LTV (borrow $50,000 against $100,000 of Bitcoin)
– 12% annual interest rate
– 1% origination fee ($250 minimum)
– 1-year term
– No prepayment penalty
What happens if Bitcoin's price drops?
If Bitcoin’s price drops significantly and your loan-to-value ratio reaches 80-90%, we issue a margin call. You’re responsible for monitoring your loan health and can add more Bitcoin collateral or pay down part of the loan to restore your LTV. If you don’t respond, we liquidate your collateral to repay the loan.
Who holds my Bitcoin?
Your Bitcoin is held by a qualified third-party Canadian custodian in fully segregated accounts. You retain complete beneficial ownership. For custody-only accounts, you control withdrawals. For loan collateral, the custodian holds Bitcoin until loan repayment.
Is DWM Canada regulated?
DWM Canada is in the process of obtaining FINTRAC MSB registration and OSC licensing. We are not yet a licensed or registered entity. We will update our regulatory status publicly as approvals are obtained.
How fast can I get funded?
Most clients go from application to funding in 1-2 business days. Once your Bitcoin collateral is confirmed with the custodian, your loan is funded and CAD is deposited to your Canadian bank account.
Is there a minimum or maximum loan amount?
While there’s no formal minimum, the origination fee is 1% or $250, whichever is greater. Most clients borrow $25,000 or more. No maximum, though six-figure loans require additional review.
Can I pay off my loan early?
Yes. There is no prepayment penalty. You can pay off your loan early and receive your Bitcoin back sooner. Interest is calculated monthly, so early repayment reduces your total interest cost.
How do I repay my loan?
No monthly payments required. Simply repay the full loan amount (principal plus accumulated interest) at the end of the 1-year term. You can also pay off the loan early with no penalty. Once repaid, your Bitcoin collateral is released back to your wallet.
Who can apply?
DWM Canada serves Canadian citizens and permanent residents only. You need a Canadian bank account, valid government ID, and Bitcoin to pledge as collateral. Both individuals and corporations can apply.
How do I monitor my loan health?
Track your loan-to-value (LTV) ratio through your DWM Canada account dashboard. As Bitcoin’s price fluctuates, your LTV changes. We’ll notify you if your LTV reaches margin call thresholds (80-90%), but you’re responsible for monitoring your position and taking action to maintain a healthy LTV.