> For the complete documentation index, see [llms.txt](https://docs.bima.money/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.bima.money/vault/whats-the-catch.md).

# 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.**

<figure><img src="/files/TWxuQjCq30KthFVM3175" alt=""><figcaption></figcaption></figure>

## 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

{% hint style="warning" %}
**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.
{% endhint %}

## Compared with the alternatives

| Route                     | What you give up                                                       |
| ------------------------- | ---------------------------------------------------------------------- |
| **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](file:///8003494/operations/risk-disclosures.md).