How Lava Prime works

Lava Prime lets institutions, funds, family offices and high-net-worth individuals borrow dollars against their bitcoin on terms built directly with the Lava team, for when a self-serve line of credit doesn't fit the size or structure they need.

How it works

Prime rests on the same idea as Lava's bitcoin line of credit (BLOC): your bitcoin is collateral, and you get dollars without selling it. The difference is that you structure the facility with Lava's team instead of opening it in the app.

1. Contact the team. Email vip@lava.xyz with what you want to structure, the facility size and any custody or repayment requirements. Lava works with you to decide whether Prime fits.

2. Structure the loan. The facility can include custom loan documents, rates, payment schedules and facility terms, set around your collateral and liquidity needs.

3. Set up custody. Your bitcoin collateral can be held with qualified custodians, including tri-party custody and segregated addresses. In a tri-party arrangement, a qualified custodian holds the collateral under an agreement among you, Lava and the custodian.

4. Receive the funds. Loan capital can arrive through stablecoins or banking rails, and you can move it to USD or EUR bank accounts. See how stablecoin and bank transfers work on Lava.

5. Work with one contact. A dedicated contact at Lava handles onboarding, loan structuring, custody coordination, funding, repayment and ongoing questions.

Prime clients also get direct access to Lava's OTC desk for large bitcoin purchases and sales. An over-the-counter (OTC) desk handles large orders directly with a trading team rather than through the standard in-app flow, which is covered in how to buy and sell bitcoin on Lava.

Costs and fees

Lava doesn't publish Prime pricing. Rates, fees and payment schedules are agreed with the team for each facility.

For reference, the standard BLOC has fixed rates from 6.50% to 8.50% depending on your line of credit balance, fixed for one year after you open the line. It adds a 2% capital charge on the largest balance you carry during the year and has no origination or early repayment fees. Ask your Lava contact how a Prime facility compares, including any custodian fees for a tri-party setup.

Risks and limits

• Your bitcoin secures the loan. If bitcoin's price falls, your loan-to-value ratio (LTV), the loan balance as a share of your collateral's value, rises. Your facility documents set the collateral requirements and what happens if they're breached, so read those terms closely. On the standard BLOC, draws start at up to 60% LTV, and a line that reaches its liquidation price is liquidated in full, with no collateral returned.

• Custom terms cut both ways. A negotiated payment schedule may include required payments. The standard BLOC has none.

• Prime isn't self-serve. Lava reviews each request with you before a facility is set up.

• Collateral isn't reused. Lava does not lend out, trade or rehypothecate bitcoin held on the platform. Rehypothecation means a lender reusing your collateral for its own purposes, such as lending it on. Lava's custody runs on institutional-grade infrastructure used to secure more than $100B in assets.

Who it's for

Prime is for institutions, funds, family offices and high-net-worth individuals who hold bitcoin as a long-term asset and need more than a self-serve line. That might mean a larger facility, loan documents that fit a specific entity or treasury setup, qualified custody or a set repayment schedule. If a standard line fits your size and structure, the BLOC is quicker to open. Companies that want a self-serve account can use Lava for Business.

Learn more on the Lava Prime page.