Volatility-proof loans are bitcoin-backed loans that eliminate all price-triggered loan-to-value (LTV) actions throughout a loan's term. No warnings at 65% LTV, no margin calls at 70%, no automatic partial liquidation at 85%. No matter how far bitcoin's price drops, collateral stays untouched as long as payments are current.
If the 10-day grace period passes after a missed interest or maturity payment, collateral can still be partially liquidated to cover the overdue amount.
Volatility-proof is offered in select US states for term loans, not for lines of credit. You can choose it when originating a new loan, refinancing, or consolidating. There's no option to switch a loan to or from volatility-proof mid-term.
| Standard loan | Volatility-proof loan | |
|---|---|---|
| Price-driven partial liquidation | Possible at 70% (after 72h) and 85% (instantly) | Not possible at any LTV |
| Maximum initial LTV | 50% | 45% |
| Term | 12 months | 6 months |
| Interest rate | 7.49%–11.25% APR | +2.95% APR |
| Mid-term collateral retrieval | Available | Not available |