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 a conservative 33%. This means we require collateral that is valued at three times the amount of USD being borrowed? For example, if you wanted to borrow $100,00 today, you would provide $300,000 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 (unless they want to). This is why we have developed our unique 0% interest product and why we have taken a conservative approach to LTV, to decrease the chances of liquidation.

⁠What happens if the value of my collateral drops?

BitBacked will send you multiple notifications before any risk of liquidation. You can “top up” with more collateral or repay part of the loan to maintain control and reduce the risk of liquidation. Our platform provides tools to monitor your loan-to-value (LTV) ratio.

⁠At what LTV is my collateral liquidated?

If the LTV increases to 50%, 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 3, 6, 9, or 12-month 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.

How does a BitBacked 0% loan work?

⁠A BitBacked 0% loan allows you to borrow against your Bitcoin without paying any interest. You only pay a low origination fee (2%) and an appreciation fee (see below) if the value of your BTC collateral rises.

⁠What is the 5% appreciation fee?

If the value of your BTC collateral has gone up within a three month period, BitBacked assesses a 5% fee on the high water appreciation amount. If the value has gone down or remains flat, no fee is assessed for that period. Every three months over the term of your loan, we make a new assessment.

⁠What is the 2% origination fee?

This low fee helps cover the costs of originating your loan. It is bundled into the total loan amount and prepaid for your convenience.

⁠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.

⁠What are the interest rates on BitBacked loans?

BitBacked’s flagship product is our 0% interest Bitcoin-backed loan. However, if you’re interested in a low, fixed interest rate loan, we have developed a product just for you. Inquire with our team for more details.