A draw is new borrowing
A $5,000 draw gives you $5,000 of modeled cash and adds $5,000 to debt. It is separate from interest, which increases the amount owed without providing new spending money when capitalized.
Work through a short schedule
Begin with no debt. Draw $5,000 at the start of 2027 and $5,000 at the start of 2028. At an illustrative 10% annual rate, those years end with $5,500 and $11,550 of debt. A further $5,000 draw at the opening of the 2029 checkpoint produces $16,550 of checkpoint debt.
Know which moment the checkpoint measures
Draw Designer measures the checkpoint after its optional checkpoint-year draw, before that year’s interest accrues. Excluding that draw leaves $11,550 at the same checkpoint. Debt Projection’s yearly ending balance includes that year’s interest, so the two views must be compared at the same moment.
A target can work backward to an equal draw
Draw Designer can solve for equal annual draws that fit a chosen modeled checkpoint debt. In this three-draw example, each $1 borrowed annually creates $3.31 of checkpoint debt. A $16,550 target therefore corresponds to $5,000 per draw under these assumptions. This is a model result, not future credit approval.
Test the checkpoint price separately
With 1 BTC pledged, $16,550 of debt is 16.55% loan-to-value (LTV) at a $100,000 price, but 33.1% at $50,000. Lower prices do not reduce the debt. Available credit, lender rates, collateral rules, and your ability to borrow later may change.