Bitcoin Lending Glossary

Rehypothecation

When a lender uses your pledged Bitcoin as collateral for their own borrowing. Core custodial risk signal.

Loan-to-Value (LTV)

Your loan amount ÷ collateral value. Determines how much you can borrow and when a margin call triggers.

Margin Call

A lender demand to add collateral or repay part of the loan when Bitcoin's price drops and your LTV rises.

Collaborative Custody

A multisig arrangement where no single party can move your Bitcoin unilaterally — lender, borrower, and key agent each hold a key.

Qualified Custodian

A regulated financial institution holding client assets under legal obligations — provides stronger protection than lender-held arrangements.

Non-QM Mortgage

A home loan that doesn't meet Fannie Mae/Freddie Mac standard qualification rules — allows flexible underwriting for Bitcoin holders.