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Bitcoin loan assumptions and lender checklist

Understand what the model calculates, then check the terms it cannot determine for you.

Start with debt, pledged BTC, and price

Loan-to-value (LTV) is debt divided by the value of pledged BTC. Reserve BTC is separate until a scenario explicitly deploys it as collateral. A modeled debt limit is collateral value multiplied by a chosen starting LTV; existing debt reduces the remaining borrowing room.

Distinguish a model threshold from lender action

A threshold price works backward from debt, pledged BTC, and your selected warning or liquidation LTV. It is the price where those assumptions meet that ratio. It does not say when a lender will notify you, what price source it uses, or how much collateral it will sell.

Read each time convention

Debt Projection adds borrowing, subtracts principal repayment, and then estimates annual interest. Draw Designer’s checkpoint is measured after its optional checkpoint draw and before checkpoint-year interest. Overview can include or exclude a planned draw. Compare balances only at matching moments.

Price paths are assumptions

Future Bitcoin prices are editable scenarios, not forecasts. A supplied floor-style path is not a guaranteed minimum. Test lower prices, higher debt, and unavailable reserves separately. A reserve balance does not guarantee a transfer can arrive before a lender acts.

What to check in a lender agreement

  • Which collateral assets and price sources count, and how often valuations update.
  • The warning and liquidation thresholds, notice procedure, and required response time.
  • APR, accrual frequency, fees, spreads, and how interest is paid or added to debt.
  • How new draws are approved, and whether available credit can change.
  • How payments are allocated and when collateral can be released.
  • Transfer delays, custody arrangements, and what happens during a liquidation.

Use the model for questions, the lender for actions

The planner does not issue a loan, move collateral, or confirm lender balances. Use the lender’s official dashboard and agreement for actual management. Do not enter private keys, seed phrases, or lender passwords into a planning tool.

What to confirm with your lender

Use these questions to choose your planner inputs. The answers come from your loan agreement and lender, not this calculator.

  1. What will I owe? Confirm the interest rate, fees, and whether interest must be paid or is added to the loan balance.
  2. Which BTC counts as collateral? Confirm the BTC actually pledged, the price source used, and when transfers or top-ups are credited. BTC in your own wallet does not lower the loan’s LTV until it is pledged.
  3. When must I add collateral or repay? Confirm the warning LTV, liquidation LTV, how you are notified, and how much time you have to respond.
  4. Can I borrow more or repay early? Confirm approval requirements, limits, fees, how repayments are applied, and when pledged BTC can be released.
  5. Who holds my BTC, and what happens if it is sold? Confirm custody arrangements and the lender’s liquidation process, including any charges.

Then test those terms in the planner. A scenario can show how debt and prices affect LTV; it cannot confirm your lender’s actual balance or actions.

Open the planner →