Summary

Lava’s newly launched Bitcoin Line of Credit (BLOC) empowers Bitcoiners to unlock dollar liquidity instantly, globally, and flexibly—without selling their BTC or triggering taxable events. Authored by CEO Shehzan Maredia, BLOC operates as a true revolving credit line: borrow up to 50% of your BTC’s value at any time, with no monthly payments, no fixed maturity, and a fixed interest rate (currently 5% for new loans). The transparent fee structure features a single 2% annual capital charge, calculated only on your highest outstanding balance—no hidden costs or surprises. All terms, rates, and risk thresholds are clearly displayed in the Lava app, and users can add collateral or repay at any time. This product is available worldwide and designed for maximum user empowerment and peace of mind.

What is the Lava Bitcoin Line of Credit (BLOC)? * The BLOC lets you borrow dollars against your Bitcoin instantly, up to 50% of your BTC’s value, with no monthly payments or fixed terms—repay whenever you want (source).
How does the capital charge work? * You pay a single 2% annual fee based on your largest outstanding balance during the year, not on every drawdown or repayment (FAQ).
Is the interest rate fixed? * Yes, your interest rate is fixed for a year and updates annually; for launch, it’s 5% for new loans (source).
Are there mandatory payments or a maturity date? * No, there are no required monthly payments and no fixed maturity—pay down or close your line at any time.
How do I avoid liquidation? * The app displays your LTV and liquidation price; you’ll receive multiple notifications if you approach liquidation, and you can add more BTC or pay down your balance at any time. Lava also offers liquidation protection for extra peace of mind (FAQ).

“The Lava line of credit is the most flexible way to borrow against your bitcoin. It allows you to instantly and securely unlock your bitcoin’s purchasing power at any time without incurring taxable events and without giving up your bitcoin upside.” — Shehzan Maredia, CEO (source)

Ready to HODL your BTC and still spend in dollars? Sign up for Lava BLOC here and experience Bitcoin-native financial freedom.

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Products

Nov 1, 2025

Introducing the Bitcoin Line of Credit (BLOC)

Shehzan Maredia

Today we’re excited to announce that our newest product, the bitcoin line of credit (BLOC), is now live.

The Lava line of credit is the most flexible way to borrow against your bitcoin. It allows you to instantly and securely unlock your bitcoin’s purchasing power at any time without incurring taxable events and without giving up your bitcoin upside. You can borrow in real time, as needed, from anywhere in the world.

How it Works

The BLOC operates like a true revolving line of credit. You can borrow any amount in real time, and you only pay interest on the dollars you’ve actually borrowed— not on your total credit limit. There are no mandatory monthly payments and no fixed maturity date, so you can borrow and repay at your own pay. If you want to pay down your balance partially or in full, you’re free to do so at any time.

Important Details

One Balance

You’ll have a single balance for all of your borrowing activity on Lava. You can borrow up to 50% of the USD value of your bitcoin balance on Lava at any time, and you can add more BTC to your account to increase your borrowing limit. Each time you draw on your line of credit, a portion of your available BTC will be locked as collateral for that loan.

No Monthly Payments

Your line of credit does not require monthly payments. Your interest will simply accrue into your total balance, and you can pay off all or part of your balance at any time. You can pay down your balance and then continue to draw on your line of credit in the future, or you can close out your line of credit in full by paying off your balance, accrued interest, and capital charge.

Open Terms

You get complete flexibility on your loan duration. You can keep your line of credit open as long as you need and pay back when you’re ready.

Fixed Interest Rate

The interest rate on your line of credit is fixed for a year, giving you the certainty you need to plan around your financial decisions. The interest rate will update yearly, and you can simply leave your line of credit open to refinance at the new rate.

Simple Fee Structure

The line of credit carries a capital charge equal to 2% of the largest outstanding balance you have on your line of credit during the year. For example, if your peak balance is $5,000, your capital charge for the entire year is $100— even if you pay that balance down to zero later.

This fee is structured so that you can draw on your line of credit and pay down as much as you’d like throughout the year, but you only pay a fee on your max outstanding balance. See this FAQ for full details.

Transparent Terms

Each time you draw on your line of credit, you’ll be presented with your balance, interest rate, LTV ratio, liquidation price, and fees. You can also see this information for your total balance at any point in the Lava app.

You can originate each draw on your line of credit at 50% LTV or lower. Loans are only liquidated if they hit the liquidation LTV— you can see this within your app, you’ll be given multiple notifications prior to this, and you can add more collateral or pay down part of your loan at any point to lower your LTV. Lava also offers liquidation protection, which gives you an additional buffer to add more collateral as needed in real time.

Getting Started

The Lava line of credit is available today for anyone to use via our web app or mobile app. You can onboard in just a few minutes by clicking this link.

To celebrate this launch, all loans originated over the next two weeks will lock in a 5% annualized interest rate.

If you have any questions, contact our team. We’d be happy to help!