Access Dollars Instantly Without Selling Your Bitcoin
Access Dollars Instantly Without Selling Your Bitcoin
A bitcoin line of credit (BLOC) allows you to securely and flexibly borrow dollars using your bitcoin as collateral— all without giving up your bitcoin upside.
A bitcoin line of credit (BLOC) allows you to securely and flexibly borrow dollars using your bitcoin as collateral— all without giving up your bitcoin upside.
How It Works
How It Works
How It Works
Lava introduced the world’s first bitcoin-backed line of credit (BLOC). This page is for educational purposes only, but here’s how Lava approaches the BLOC:
Lava introduced the world’s first bitcoin-backed line of credit (BLOC). This page is for educational purposes only, but here’s how Lava approaches the BLOC:
Instant Access to USD
Instant Access to USD
As soon as you add collateral to your account, you’re eligible to get cash instantly. No paperwork or delays.
As soon as you add collateral to your account, you’re eligible to get cash instantly. No paperwork or delays.
As soon as you add collateral to your account, you’re eligible to get cash instantly. No paperwork or delays.
Fixed Interest Rate
Fixed Interest Rate
The interest rate on your BLOC is fixed for a full year from the time you open your line of credit. Interest rates start at just 5%.
The interest rate on your BLOC is fixed for a full year from the time you open your line of credit. Interest rates start at just 5%.
The interest rate on your BLOC is fixed for a full year from the time you open your line of credit. Interest rates start at just 5%.
Direct Off-Ramps
Direct Off-Ramps
Off-ramp funds directly to your bank account, with same-day processing available.
Off-ramp funds directly to your bank account, with same-day processing available.
Off-ramp funds directly to your bank account, with same-day processing available.
No Monthly Payments
No Monthly Payments
Interest accrues into your total balance, and you can pay off all or part of your balance at any time.
Interest accrues into your total balance, and you can pay off all or part of your balance at any time.
Interest accrues into your total balance, and you can pay off all or part of your balance at any time.
Open Terms
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.
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.
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.
No Rehypothecation
No Rehypothecation
Your bitcoin is held securely and is never lent out, traded, or otherwise rehypothecated. No exceptions.
Your bitcoin is held securely and is never lent out, traded, or otherwise rehypothecated. No exceptions.
Your bitcoin is held securely and is never lent out, traded, or otherwise rehypothecated. No exceptions.
Simple Fee Structure
Simple Fee Structure
The BLOC starts at 5% interest, with a 2% capital charge assessed on the largest outstanding balance you have on your line of credit during the year. This gives you access to the lowest all-in borrow rates in the industry, plus the flexibility to borrow and repay as needed.
The BLOC starts at 5% interest, with a 2% capital charge assessed on the largest outstanding balance you have on your line of credit during the year. This gives you access to the lowest all-in borrow rates in the industry, plus the flexibility to borrow and repay as needed.
The BLOC starts at 5% interest, with a 2% capital charge assessed on the largest outstanding balance you have on your line of credit during the year. This gives you access to the lowest all-in borrow rates in the industry, plus the flexibility to borrow and repay as needed.
Why Borrow?
Why Borrow?
Why Borrow?
Borrowing against your bitcoin can be one of the most advantageous strategies for bitcoiners looking to grow their wealth.
Borrowing against your bitcoin can be one of the most advantageous strategies for bitcoiners looking to grow their wealth.
Unlock Your Bitcoin’s Purchasing Power
Unlock Your Bitcoin’s Purchasing Power
Unlock Your Bitcoin’s Purchasing Power
The value of bitcoin has gone up significantly over time. Borrowing allows you to easily unlock that spending power.
The value of bitcoin has gone up significantly over time. Borrowing allows you to easily unlock that spending power.
The value of bitcoin has gone up significantly over time. Borrowing allows you to easily unlock that spending power.
Keep Your Upside Exposure
Keep Your Upside Exposure
Keep Your Upside Exposure
When you borrow against your bitcoin, you don’t have to sell it. You get to retain full exposure to bitcoin’s upside and future growth.
When you borrow against your bitcoin, you don’t have to sell it. You get to retain full exposure to bitcoin’s upside and future growth.
When you borrow against your bitcoin, you don’t have to sell it. You get to retain full exposure to bitcoin’s upside and future growth.
Access Cash Instantly
Access Your Funds Instantly
Access Cash Instantly
Bitcoin-backed loans allow you to access cash instantly when you need to fund purchases.
Bitcoin-backed loans allow you to access cash instantly when you need to fund purchases.
Bitcoin-backed loans allow you to access cash instantly when you need to fund purchases.
Plan Taxes More Efficiently
Plan Taxes More Efficiently
Plan Taxes More Efficiently
In most cases, borrowing against your bitcoin is not a taxable event. This allows you to access cash without triggering capital gains.
In most cases, borrowing against your bitcoin is not a taxable event. This allows you to access cash without triggering capital gains.
In most cases, borrowing against your bitcoin is not a taxable event. This allows you to access cash without triggering capital gains.
Borrow At The Best Rates
Access Your Funds Instantly
Borrow At The Best Rates
With rates as low as 5%, bitcoin-backed loans are a great option to refinance other more expensive debt. Plus, you can retain exposure to bitcoin’s high compound annual growth rates while borrowing for much less.
With rates as low as 5%, bitcoin-backed loans are a great option to refinance other more expensive debt. Plus, you can retain exposure to bitcoin’s high compound annual growth rates while borrowing for much less.
With rates as low as 5%, bitcoin-backed loans are a great option to refinance other more expensive debt. Plus, you can retain exposure to bitcoin’s high compound annual growth rates while borrowing for much less.
How Does A Bitcoin Line
of Credit (BLOC) Work?
How Does A Bitcoin Line
of Credit (BLOC) Work?
How Does A Bitcoin Line of Credit (BLOC) Work?
Deposit bitcoin as collateral
Deposit bitcoin as collateral
Borrow USD instantly
Borrow USD instantly
Repay and borrow more as needed
Repay and borrow more as needed
Repay in full, or close your BLOC
Repay in full, or close your BLOC
Receive your collateral
Receive your collateral
Understand Your Risks
Understand Your Risks
| Risks | The Issue | How Lava Mitigates |
|---|---|---|
| Bitcoin Volatility | Bitcoin can be volatile, which can trigger margin calls or liquidations. | Lava initiates all loans at 50% LTV, giving you plenty of margin for safety. You can add more collateral or pay down part of your loan at any time, and Lava offers liquidation protection to add collateral automatically. |
| Payment Obligations | You must pay back your loan in order to release your collateral. | Lava does not require monthly payments, so you can pay back your loan on your own terms. |
| Interest Rates | Some platforms offer variable interest rates, which can alter borrowing costs significantly. | Lava's BLOC gives borrowers access to a fixed interest rate for a year from the time you open your line of credit, giving you clarity on interest costs. |
| Fees | Some platforms may charge additional fees on certain activity. | Lava offers fully transparent fees and terms. Users pay the base interest rate, plus a 2% capital charge on their max outstanding balance. There are no origination fees or early repayment fees. |
| Taxes | Borrowing against your bitcoin does not trigger a taxable event in most cases, but liquidation of your collateral may. | Lava allows users to add collateral, pay down their loan at any time, and use liquidation protection to avoid liquidations. Lava's BLOC offers open terms, so users can keep their loan open as long as they need. |