Borrowing Terms

The terms

Parameter	Value
Collateral	Tokenised BTC, WBTC, cbBTC and similar
Loan asset	USDC
Loan-to-value (LTV)	50%
Interest rate	0%
Deposit window	7 days
Loan duration	12 months, fixed
Downside	Protected below the put strike
Upside	Retained up to the call strike
Redemption delay	7–15 days after repayment
Liquidations	None
Early withdrawal	Not available

What 50% LTV at 0% means

Deposit 1 BTC at $100,000 and you can claim $50,000 USDC. Twelve months later you repay $50,000. No interest has accrued in between.

The conservative LTV is part of why no liquidation mechanism is needed: the loan sits well below the collateral value, and the collar bounds how far that value can fall.

Your repayment is fixed

You repay what you claimed, and nothing more.

You claimed	$50,000 USDC
Interest over the term	$0
BTC at $150,000 at maturity → you repay	$50,000
BTC at $100,000 at maturity → you repay	$50,000
BTC at $60,000 at maturity → you repay	$50,000

The repayment never grows with the BTC price, and no rate can move against you.

Three outcomes

BTC finishes above the call strike.

You keep every dollar of gain up to the strike. Above it, the upside funds the financing. This is the case where you would have done better holding — and it is the price of the 0%.

BTC finishes between the strikes.

Full participation. You keep the whole gain or wear the whole fall, receive all your collateral back, and the financing cost you nothing at all.

BTC finishes below the put strike.

Protection applies and your loss stops tracking Bitcoin down. Not a guarantee of your capital — the fall between your deposit price and the put strike is still yours.

See What Is a Collar? for the full payoff.

Fees

See Fees and Revenue for the current fee schedule.

The constraints

The system enforces these and they cannot be waived:

• One vault per month

• A fixed 50% borrowing ratio no custom LTV

• Strike levels set per vault, not per user

• No early withdrawal

• Delayed redemption after repayment