What's the catch?
Every credit product is a trade. This one is stated plainly enough that you can decide against it.
You are exchanging some future upside for capital today.
What you keep
All appreciation up to the call strike. Every dollar of gain below that level is yours.
$50,000 per BTC at 0% interest. No rate, no accrual, no monthly servicing, no payment schedule.
Downside protection below the put strike. Your loss stops tracking Bitcoin all the way down.
Fixed terms. Strikes, LTV, term and repayment amount are set at the start and cannot be changed by anyone.
What you give up
Gains above the call strike. This is what funds the financing. It is the real cost of the 0%, and it is the thing to underwrite honestly before you deposit.
Access to your BTC for twelve months. No early exit, for any reason.
Immediate redemption. Collateral comes back 7–15 days after you repay.
The fall down to the put strike. Protection bounds your loss; it does not eliminate it.
When this is a good fit
You intend to hold BTC through the next twelve months anyway
You expect Bitcoin to appreciate moderately, trade sideways, or fall
You have a use for the USDC that justifies committing the collateral
You can repay from a source other than selling the redeemed BTC
You value a bounded outcome more than an uncapped one
When it is not
You expect Bitcoin to run far past the call strike within the term
You may need the BTC, or the money, before maturity
You would have to sell the redeemed collateral to repay
You are borrowing to buy more BTC that concentrates exposure rather than diversifying it
You are not comfortable with collateral held off-chain under a collar during the term
The question to ask yourself: if Bitcoin doubled during your term, would you still be glad you did this? If the answer is no, deposit less or don't deposit.
Compared with the alternatives
Sell your BTC
The position and all future upside, plus a taxable disposal today
DeFi lending platform
Interest that compounds, plus liquidation risk in a sharp fall
Do nothing
The use of capital your Bitcoin could have unlocked
BIMA Monthly Vault
Upside above the call strike, and access to your BTC for twelve months
Only one of those has a cost of zero in most outcomes and a bounded downside in all of them. And only one caps your upside. Both are true at once.
Full risks are set out in Risk Disclosures.
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