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. Stronger protection than lender-held arrangements.

Non-QM Mortgage

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

APR (Annual Percentage Rate)

The all-in yearly cost of a loan: interest plus origination and other fees, not just the headline interest rate. The figure we standardize on.

Liquidation

The forced sale of your pledged Bitcoin when your LTV breaches the lender's threshold and a margin call goes unanswered.

Cure Period

The window, often 24 to 72 hours, to respond to a margin call by adding collateral or repaying before liquidation.

Origination Fee

A one-time upfront fee to open a loan, usually a percent of the amount borrowed. Folded into the APR.

Collateral-to-Principal (CTP)

Collateral value ÷ loan principal, the inverse view of LTV. 200% CTP equals 50% LTV. Unchained quotes loans this way.

Qualify-with-Crypto

A mortgage model that counts your crypto toward qualification without pledging it, so there's no margin call.