Highlights

Loan My Coins introduces a fresh Bitcoin-for-Bitcoin lending model that sidesteps many common risks of traditional Bitcoin-for-fiat loans—like counterparty exposure, margin calls, and liquidation—achieving an estimated Zone21 risk score of just 10, far safer than the top five fiat lenders, which range from Unchained's 29 (the only low-risk option) to Aave's 62 (high risk).

Our high 95% LTV allows you to unlock nearly twice as much liquidity from the same amount of bitcoin compared to competitors' typical 50% ratios, and with all these benefits, we offer one of the lowest rates at just 5% fixed with the opportunity to roll your loan for up to 5 years.

Penalties

Loan My Coins minimizes traditional lending risks through its Bitcoin-for-Bitcoin model, with no margin calls, no liquidations, and upfront delivery of 95% of your deposit (e.g., 9.5 BTC on a 10 BTC stake).

However, potential penalties include: if you can't repay after 12 months (or rolled terms up to 5 years with additional 5% fees), the counterparty may retain your staked bitcoin, which could be treated as a taxable event (e.g., capital gains on the collateral).

The primary risks are underperforming investments with the loaned bitcoin or rare counterparty failure—though you hold the borrowed bitcoin upfront, significantly reducing exposure. For clarity, if the counterparty disappears, you could write off the staked coins as a capital loss while still holding your side of the trade (the loaned amount), providing a silver lining compared to catastrophic losses in bitcoin-for-fiat loans (e.g., full liquidation).