FAQ

⁠How do I apply for a BitBacked Bitcoin-backed loan?

Click on “Apply for a loan” and follow the instructions presented on the screen. The initial application process takes only a couple minutes. Once complete, someone from our team will reach out to you within 24 hours.

⁠How quickly can I get a BitBacked loan?

Once your application is approved and you securely send us the required Bitcoin (BTC) collateral, funding typically occurs within 24 hours.

⁠What is the LTV (Loan-to-value) for BitBacked loans?

Our LTV is 50%. This means we require collateral valued at twice the amount of the USD being borrowed. For example, if you’d like to borrow $100,000, you would provide $200,000 in BTC collateral.

⁠⁠Why is BitBacked’s LTV lower than others?

Our goal is to help Bitcoiners unlock cash without ever needing to sell their Bitcoin. This is why we have taken a conservative approach to the LTV, which in turn decreases the chances of a liquidation event ever occurring.

⁠What happens if the value of my collateral drops?

At any time you may “top up” your account with more collateral or repay part of the loan to maintain control and reduce the risk of liquidation.

⁠At what LTV is my collateral liquidated?

If the LTV increases to 75% or greater, your collateral will be automatically liquidated and your loan will be paid off. ⁠

⁠Do I need a credit check for a BitBacked loan?

No. BitBacked’s loans are based on the value of your BTC collateral.

⁠Can I repay my loan early?

Yes, you can repay your BitBacked loan at any time before the end of the loan term. ⁠

⁠What currencies can I receive my loan in?

BitBacked loans are denominated in US dollars but can be funded in USD, USDT or USDC.

⁠Where are BitBacked loans available?

BitBacked’s Bitcoin-backed loans are available in many regions globally. However, certain countries or jurisdictions may have restrictions.

⁠Is my collateral safe with BitBacked?

BitBacked prioritizes the security of your assets. Your collateral is never rehypothecated (lent out to third parties) and is custodied in a secure, segregated MPC wallet. BitBacked conducts quarterly Proof-of-Reserves attestations to verify all loan and asset balances.