I’ve been comparing Bitcoin-backed loans because I need liquidity for a while but don’t really want to sell BTC.

The interest rate matters, but after Celsius and BlockFi I’m way more interested in what happens to the collateral once you send it over.

Main things I’m trying to figure out:

Who actually custodies the Bitcoin? Is the collateral rehypothecated? What LTV triggers a margin call? How much time do you get to add collateral? Do they partially liquidate or sell the whole position? Are there origination fees or penalties for paying the loan back early?

The names I keep running into are Arch, Ledn and few others

On paper a lot of these crypto-backed loans look pretty similar, but I’m more interested in how they work when BTC drops 15-20% quickly. That seems like the point where the differences actually matter.

Anyone here using a Bitcoin-backed loan right now? Which lender did you choose, and has anyone actually dealt with a margin call or withdrawal yet?

submitted by /u/keissiaresa [link] [comments]r/CryptoCurrencyRead More

You might also be interested in reading Robert Kiyosaki forecasts imminent stock market crash, reaffirming his bullish outlook on Bitcoin..