English (en)

Capital is on the move. In the traditional financial world, a massive narrative is currently dominating: "The Great Reallocation" – the massive shift from bank loans and public markets to **Private Credit**. Billions are being pumped into private credit funds because investors are hunting for yield, and borrowers are thirsting for liquidity away from restrictive traditional banks. However, private credit risks are often overlooked in this shift.

But for those who have built wealth in the bitcoin space, especially those focused on capital preservation, – bitcoin founders, senior operators, and early adopters – the hype around private credit reveals fundamental flaws. If your primary goal is capital preservation (_"Preserve first. Optimize second."_), private credit is not the future, especially when compared to more transparent capital preservation strategies. It is a step back into a system that demands trust but delivers opacity.

## The Illusion of Private Credit: Understanding Private Credit Risks

Private credit is often sold as a bespoke solution for liquidity needs. But for technically proficient and security-conscious players who have survived market cycles (and the FTX trauma), the model is unacceptable. What are the private credit risks?

- **The Custodial Trap:** In private credit, you hand over full control of your collateral. The principle of "Trust me, bro" applies. For someone who uses multisig setups and hardware wallets, this loss of sovereignty is a massive risk.
- **Rehypothecation by Default:** Your collateral doesn't just sit safely in a vault. Behind the scenes, it is often lent out to maximize the fund managers' returns. It is a financial black box - one of the most critical private credit risks for capital-conscious investors.
- **Opaque Edge Cases:** What happens in the event of death, incapacity, or counterparty failure? In private credit, you are dependent on complex legal processes and a single service provider.

## The Debifi Way: Sound Money as a Pristine Credit Anchor

Why should you squeeze your most important and hardest asset – Bitcoin – into an opaque TradFi structure? The true "Great Reallocation" for bitcoin-natives doesn't lead to private credit funds, but to cryptographically secured, Bitcoin-backed loans - **a transparent alternative in the debate of private credit vs banks and traditional lending systems**.

At Debifi, we have built an architecture that creates liquidity without requiring you to sell your conviction or take incalculable risks:
- **Verifiable Control (MultiSig)**: Instead of handing over your keys, we use collaborative custody (e.g., 3-of-5 MultiSig). You retain a cryptographic guarantee and partial control over your assets at all times.
- **Zero Rehypothecation**: We don't play yield games. Your Bitcoin remains your Bitcoin – verifiable on-chain, isolated, and untouched until the loan is repaid.
- **Security you can reason about**: No over-engineered DeFi experiments. A clear, transparent technical structure with minimal trust assumptions. Set it up once, sleep well.

### Debifi Bitcoin Snapshot – February 2026: The Numbers Speak for Themselves

A look at our latest developments shows that the market is longing for exactly this level of security. Our [Debifi Bitcoin Snapshot from February 2026](/blog/en/debifi-bitcoin-monthly-newsletter-february) impressively underscores that smart money is increasingly rejecting rehypothecation and black-box risks:

- **Structured Growth among HNWIs & Founders**: We are seeing a massive increase in average loan sizes ($50k to $1M+), primarily driven by crypto founders and family offices who use use deliberately and securely to optimize tax burdens or bridge liquidity events.
- **100% On-Chain Integrity**: Throughout February, 100% of our collateralized assets remained verifiable on-chain every single second. 0 Defaults. 0 Rehypothecation.
- **TradFi Meets Self-Sovereignty**: As our growing partnerships in the banking sector show, the Debifi model (bank-grade conditions paired with non-custodial security) is becoming the new gold standard. Institutions recognize that a Bitcoin loan can no longer require blind trust in a custodian.

## Conclusion

Private credit with its structural limitations and risks is a solution for an old world. Those who truly care about capital preservation and want to protect their family and reputation don't need opaque funds. You need liquidity that adapts to your security standards – not the other way around.

Let your Bitcoin work for you, but keep the keys.


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The Great Reallocation: Why Private Credit is a Black Box (and Bitcoin-Backed Loans are the Solution)

Bitcoin collateral loans are often discussed in abstract terms, but their suitability depends heavily on the borrower’s profile. Used correctly, they can be effective liquidity tools. Used incorrectly, they can amplify financial stress.

Understanding whether borrowing against Bitcoin is appropriate begins with honest self-assessment.

## Who Loans against Bitcoin Are For

Loans against Bitcoin are best suited for long-term Bitcoin holders with strong conviction and a clear understanding of volatility. These borrowers typically view Bitcoin as a strategic asset rather than a short-term trade.

They often have predictable cash flows - from a business, salary, or other income - that allow them to service interest payments and respond to margin calls if necessary.

These borrowers tend to use loans for productive or necessary purposes: business expenses, investments, taxes, or temporary cash flow management. The borrowed capital serves a defined function, rather than funding consumption or speculation.

Conservative structuring is another common trait. Suitable borrowers use low initial LTVs, maintain buffers, and treat [collateral management](/blog/en/smart-loan-management) as an active responsibility.

## Who Bitcoin Collateral Loans Are Not For

Bitcoin collateral loans are poorly suited for short-term speculation. Using borrowed funds to increase Bitcoin exposure introduces compounding risk and undermines the purpose of collateralization.

They are also unsuitable for borrowers with unstable income or limited liquidity buffers. Margin calls require timely responses. Without available capital, borrowers may be [forced into liquidation](/blog/en/forced-liquidation) at unfavorable prices.

Emotional decision-making is another risk factor. Borrowers who react impulsively to market movements often struggle with the discipline required for collateral management.
Finally, loans against Bitcoin are not appropriate for users seeking passive or “hands-off” solutions. Borrowing against Bitcoin requires ongoing attention.

## Discipline as a Prerequisite

Bitcoin-backed lending rewards discipline and punishes complacency. This is not a flaw - it is a feature of using a volatile asset as collateral. Responsible lending platforms must be willing to say no to unsuitable use cases. Long-term trust is built by aligning tools with the right users, not by maximizing volume. Borrowing money against Bitcoin is not about access. It is about suitability.


Bitcoin collateral loans - who should use them

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Who Bitcoin Collateral Loans Are For - and Who Should Avoid Them

In February 2026, Bitcoin market indicators and Debifi lending metrics reflected the following developments:

As of February 28, 2026, Bitcoin was trading at **$67,049**. Throughout the month, the price fluctuated between a high of **$79,362** (Feb 1st) and a low of **$60,112** (Feb 6th). The maximum drawdown reached **-24.2%**. Daily trading volume ranged between **$88 billion and $115 billion**, while 30-day volatility rose to approximately **2.5%.** This represents a substantial month-over-month increase in both volatility (+0.35%) and trading volume (≈ +154%).

Regarding Debifi's lending metrics, the average Loan-to-Value (LTV) ratio remained stable at **63.4%**. The Annual Percentage Rate (APR) decreased by more than 237 basis points, dropping from an average of **13.55%** to **11.18%**.

For the first time, the average loan duration has exceeded **13 months**. This trend is primarily driven by the growing success of our new long-term offerings, which are gaining significant traction.

_Sources : Debifi open loan offers, Tradingview & BitBox_

## February 2026 Overview

February 5th marked a decisive turning point for the month. Under the pressure of macroeconomic turbulence, Bitcoin underwent a correction of approximately 16% within 24 hours. Far from the crypto-native business failures of the past, this pullback was driven by the global economic climate and profit-taking from long-term holders.
A notable highlight: the average LTV on Debifi remained stable at 63.4%, proving the responsiveness of borrowers who successfully adjusted their guarantees in the face of falling collateral prices. 

![LTV trend for Debifi contracts](https://zr5pqljgeynt.compat.objectstorage.eu-zurich-1.oraclecloud.com/blog-production-mainnet/debifi_ltv_graph_f1a05d484a.png)
<center>LTV trend for Debifi contracts. Source: Debifi Contract</center>
 

At Debifi, we provide a notification service via our mobile app and email, advising borrowers to either [top up their collateral](https://debifi.com/blog/en/smart-loan-management) or partially repay the loan when the LTV approaches the 75% threshold. This foresight was instrumental in preventing liquidations amidst recent market swings.

The market retreat in February did not dampen investor appetite; both institutional inflows and credit demand are seeing strong growth. This month, we saw a significant drop in interest rates (APR), which fell from an average of **13.55%** to **11.18%**. These attractive rates (APR) are encouraging Bitcoiners to leverage their holdings through a reputable third party. Looking at the highest vs. the lowest average APR within a 12 month period we see a nearly **50% decrease of APR at Debifi loan offers**.



![Debifi contracts average APR decrease](https://zr5pqljgeynt.compat.objectstorage.eu-zurich-1.oraclecloud.com/blog-production-mainnet/debifi_apr_graph_7dda69ebdc.png)
<center>Debifi contracts average APR decrease. Source: Debifi Contracts</center>
 

This month also sees an acceleration in the number of clients taking out long-term loans (12+ months). The average loan duration on Debifi has now reached 13.36 months. This highlights the success of our long-term loan offers (12 to 24 months), which were introduced last October.

![Contracts average length 2025-2026](https://zr5pqljgeynt.compat.objectstorage.eu-zurich-1.oraclecloud.com/blog-production-mainnet/debifi_contracts_avg_period_graph_c4bbbf50e7.png)
<center>Contracts average length. Source: Debifi Contract</center>
 

Ultimately, February highlights a shift in user behavior: Bitcoin holders are actively managing their liquidity. The transition toward longer-term borrowing suggests a growing confidence in both the asset's long-term value and Debifi’s role as a reliable partner. 

Through our [MultiSig infrastructure](/blog/en/where-bitcoin-is-held), clients unlock liquidity without sacrificing their positions or their sovereignty. It is the ultimate synergy between financial agility and uncompromising collateral protection.

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Debifi & Bitcoin Snapshot for February 2026

The question of whether to sell Bitcoin or borrow against it is often framed as a philosophical debate. In practice, it is a financial decision shaped by time horizon, risk tolerance, and the specific purpose of the liquidity.

Both options solve the same short-term problem - access to capital - but they do so in fundamentally different ways, with very different long-term consequences.

## Selling Bitcoin: Simplicity with Hidden Costs
Selling Bitcoin is straightforward. The asset is exchanged for fiat currency, and liquidity is immediately available. There are no ongoing obligations, no interest payments, and no exposure to collateral risk.However, this simplicity comes at a price. In most jurisdictions, selling Bitcoin triggers capital gains taxation. This reduces net liquidity and permanently lowers the Bitcoin position. Even where tax treatment is favorable, selling introduces reporting requirements and strategic considerations that many holders underestimate. Beyond taxation lies opportunity cost. Bitcoin is a scarce asset with a fixed supply. Selling it removes exposure to future price appreciation. For long-term holders, this is often the most significant cost - even if it is invisible at the time of sale. Selling Bitcoin is also irreversible. Liquidity needs are often temporary. Selling Bitcoin permanently alters the portfolio. Rebuilding the position later requires re-entering the market, often at higher prices and under less favorable conditions.

## Borrowing Against BTC: Preserving Exposure with Responsibility
Borrowing money against Bitcoin approaches the liquidity problem from a different angle. Instead of exchanging Bitcoin for fiat, the Bitcoin is pledged as collateral to secure a loan.
The borrower gains access to capital while retaining ownership and economic exposure to Bitcoin. Once the loan is repaid, the Bitcoin is returned. This structure avoids immediate taxation in most jurisdictions and preserves long-term exposure. However, it introduces new risks that must be actively managed. The primary risk is volatility. Bitcoin’s price can decline sharply. If the value of the collateral falls, the Loan-to-Value ratio rises, potentially triggering margin calls or [liquidation](/blog/en/forced-liquidation). Interest costs are another consideration. Borrowing is not free. Over time, interest payments can accumulate and must be weighed against the benefits of retained Bitcoin exposure.

## Comparing Outcomes Across Market Scenarios
The relative attractiveness of selling versus borrowing changes depending on market conditions. In a rising Bitcoin market, borrowing often proves more efficient. Retaining exposure can outweigh interest costs by a wide margin, especially for long-term holders with conservative loan structures. In flat markets, the decision becomes more nuanced. Interest costs may outweigh price appreciation, making borrowing less attractive unless liquidity is needed for productive purposes. In declining markets, risk management becomes critical. Conservative LTVs, sufficient buffers, and the ability to respond to margin calls determine whether borrowing remains viable.

## The Role of Time Horizon
Time horizon is one of the most important variables in this decision.
Short-term holders or those intentionally reducing exposure may find selling appropriate. Long-term holders with high conviction often prioritize preserving Bitcoin ownership, even at the cost of interest and operational complexity.
Borrowing against BTC is most effective when aligned with a long-term outlook and a clear repayment plan.

## No Universal Answer - Only Informed Trade-Offs
There is no universally correct choice between selling Bitcoin and borrowing against it.
Selling offers simplicity and certainty but at the cost of taxes, lost upside, and irreversibility. Borrowing preserves exposure but requires discipline, [risk management](/blog/en/how-bitcoin-backed-loans-work), and tolerance for volatility.
The right decision depends on context, not ideology. Understanding the trade-offs - clearly and honestly - is more important than choosing a side.


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Borrow Against BTC vs Sell Bitcoin: A Realistic, Long-Term Comparison

The Bitcoin market is known for one thing above all else: **volatility**. While many see this as a hurdle, at Debifi, we see it as an opportunity to build more resilient tools. Our mission has always been to contribute to the growth of the Bitcoin ecosystem by providing professional grade financial infrastructure.

But building in a vacuum doesn't work. We build alongside our community.
Over the past few months, we’ve analyzed your support requests and feedback. The message was clear: **Borrowers want more control**. You don't just want to accept terms; you want to set them.

Today, we are excited to officially release **Borrower Offers**.

## Flipping the Script on Liquidity
In traditional lending markets, the lender typically sets the terms, and the borrower chooses the best fit. We’re changing that dynamic. With the new Borrower Offers feature, the power to initiate a deal shifts to those seeking liquidity.

By allowing borrowers to publish their own offers directly to the platform, we are fostering a more balanced, transparent, and sovereign Bitcoin Ecosystem.

## What This Means for You
The Borrower Offer feature is a technical milestone that provides several key advantages:
- **Custom Terms:** You are no longer restricted to existing market offers. You can now define exactly what you are looking for.
- **Set Your Own APR:** You decide the interest rate that makes sense for your financial strategy.
- **Repayment Flexibility:** Choose a repayment schedule that aligns with your cash flow, whether that’s regular interest payments or a different structure.

## Watch the Walkthrough
We’ve prepared a short "How-To" video to show you exactly how to navigate the new interface and publish your first offer.

[https://youtu.be/NyBCRWMl-fk?si=obGpgCxbIyRK680l](https://youtu.be/NyBCRWMl-fk?si=obGpgCxbIyRK680l)

## Building for the Long Term
This update is more than just a new button on a dashboard. It’s a response to a volatile market that demands more flexibility and a direct result of the feedback from our users. Every feature we ship is a step toward a more robust and self-sovereign Bitcoin ecosystem. 



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From Reactive to Proactive: Introducing "Borrower Offers" on Debifi

Bitcoin is volatile by design. Any lending model that ignores this reality is structurally unsound.

When Bitcoin is used as collateral, **Bitcoin price volatility directly affects** the health of the loan. Understanding how this dynamic works is essential before borrowing against Bitcoin.

The key variable is the Loan-to-Value ratio. As Bitcoin’s price declines, the value of the collateral decreases while the loan amount remains unchanged. This causes the LTV to rise.

To manage this risk, Bitcoin-backed loans include predefined thresholds that trigger margin calls. **What is a margin call?** A margin call is a request to restore collateral safety by either adding Bitcoin or repaying part of the loan.

Margin calls are not failures. They are safeguards designed to prevent liquidation. They give borrowers time and options to respond before the loan becomes unsafe.

[Liquidation](/blog/en/forced-liquidation) occurs only when margin calls are ignored or when market movements are too rapid to manage within the defined buffers. Liquidation protects lenders from under-collateralization but is generally the least desirable outcome for borrowers. Starting with end of Q1 we release the feature “delayed liquidation” to support borrowers and lenders in volatile markets. All details [here](/blog/en/product-update-delayed-liquidation-excess-collateral). 

At Debifi, the emphasis is on conservative initial LTVs, clear communication, and manual oversight rather than instant automated liquidation systems. This approach prioritizes stability over speed.

Borrowers must understand that Bitcoin-backed loans require active risk management. Passive borrowers who are unwilling or unable to respond to market movements should not use Bitcoin as collateral.

Bitcoin volatility does not make Bitcoin-backed loans inherently dangerous. Ignoring Bitcoin volatility does.

Responsible borrowing starts with conservative assumptions, sufficient buffers, and a realistic understanding of downside scenarios.


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Bitcoin Volatility, Margin Calls, and Liquidations Explained

In Bitcoin-backed lending, custody is not a technical detail. It is the foundation of trust.
Before considering interest rates, loan terms, or speed of execution, borrowers should ask a single, fundamental question: where is my Bitcoin held?
The history of Bitcoin lending provides many examples of what happens when this question is ignored. Opaque custody arrangements, rehypothecation, and unclear control structures have repeatedly led to losses for borrowers who believed their Bitcoin was “safe” until it wasn’t.

Bitcoin-backed loans require the borrower to temporarily give up direct control over their Bitcoin. This makes custody structure more important than in almost any other financial arrangement involving Bitcoin.

A robust Bitcoin custody setup must clearly answer three questions:
- Who controls the keys?
- Under what conditions can the Bitcoin move?
- What happens in extreme scenarios such as insolvency or legal disputes?

In poorly designed lending models, Bitcoin collateral is often reused, traded, or pledged elsewhere to generate additional yield. This introduces hidden counterparty risk. While such models may offer lower interest rates, they fundamentally change the risk profile of the loan.
At Debifi, Bitcoin collateral exists for one purpose only: securing the loan. It is not rehypothecated, traded, or used for yield generation. This conservative approach limits systemic risk and aligns incentives between borrower and lender.

Transparency is critical. Borrowers should understand not only where their Bitcoin is held, but also the legal and operational framework governing that custody. This includes clarity on jurisdiction, contractual rights, and dispute resolution mechanisms.

Another important consideration is the difference between custody and control. Even if Bitcoin is held securely, borrowers must understand who has authority to initiate transactions and under which predefined conditions. Clear rules reduce uncertainty during periods of market stress.
In Bitcoin-backed lending, trust is not created through branding or promises. It is created through structure, documentation, and clear boundaries.

Custody transparency does not eliminate risk, but it makes risk visible and manageable. For borrowers, this visibility is essential to making informed decisions.
Understanding custody is not optional. It is a prerequisite for responsible borrowing against Bitcoin.

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Where Your Bitcoin Is Held: Custody and Control in Bitcoin-Backed Loans

At Debifi, our mission is to provide the most secure bridge between your Bitcoin and the liquidity you need. We know that the market never sleeps and that volatility is part of the journey. That’s why we’ve rolled out a series of technical features designed to give you more control over your collateral and make the entire lending process smoother than ever.

Here is a breakdown of the latest features now live on the platform.

## Protection Against Flash Crashes: Delayed Liquidation  
Bitcoin’s price can be volatile, and short-term "dips" shouldn't force you out of your position. To protect borrowers from abrupt liquidations during sudden market fluctuations, we are introducing **_Delayed Liquidation_**.

- **The Safety Buffer:** Lenders can now include a delay period of 12, 24, 36, or 48 hours in their offers.  
- **Time to React:** If your Loan-to-Value (LTV) ratio hits a critical threshold, liquidation isn't triggered instantly. You now have a defined window to top up your collateral or partially repay the loan.  
- **Peace of Mind:** This feature is a game-changer for those who want to sleep soundly even in volatile market phases. Available for all new contracts.

## Maximize Capital Efficiency: Extract Excess Collateral  
When the Bitcoin price rises, you might find that you have significantly more capital locked in your multisig escrow than is actually required to secure your loan. With our new _**Extract Excess Collateral feature**_, you can reclaim that surplus.

- **Proactive Management:** You can now "over-collateralize" your loan in anticipation of volatility (e.g., before going on vacation) and simply withdraw the excess once the market stabilizes or you return.  
- **Keep Your Sats Liquid:** You don’t have to keep your capital tied up unnecessarily. Move your excess sats back to your own wallet while your loan contract remains active and secure.

## Speed & Automation: Save BTC Address
For our power users, every second counts. We have significantly optimized the process for collateral refunds and liquidation releases.

- **Eliminate the Wait:** Previously, the withdrawal process often paused while waiting for all parties to manually add their destination addresses.  
- **One-Click Withdrawals:** You can now save your preferred BTC addresses directly in your account profile. The system automatically retrieves these addresses when a transaction is required, drastically speeding up the signing and broadcasting process.  
- **Seamless Reusability:** Once saved, your addresses are ready for all future contracts \- ensuring a faster, error-free workflow.

## Transparent Pricing: Updated Origination Fees  
To keep our platform fair and competitive for both small and large-scale loans, we have updated our Origination Fee structure for all new contracts. The fee is now calculated transparently based on Loan Volume and Loan Duration.  
Base Fee (by Loan Volume):

- Up to $300,000: 1.5%  
- $300,001 to $1,000,000: 1.2%  
- Above $1,000,000: 1.0%

Additional Fee (by Loan Duration):

- Year 1: 0%  
- Year 2: \+0.3%  
- Year 3: \+0.6%

Example Calculation: 
A $500,000 loan for a 2-year term would result in a total origination fee of 1.5% (1.2% Base Fee \+ 0.3% Duration Fee).

## Conclusion

These updates reflect our commitment to making Debifi the premier choice for institutional and private Bitcoin holders. More protection, more speed, and full transparency.  
Log in to your dashboard today to explore these new features and optimize your borrowing strategy.  

Debifi Product Update: New Features introduced

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Product Update: Strengthening Security and Control for Your Bitcoin Loans

Bitcoin-backed loans are often discussed in simple terms, but their mechanics are frequently misunderstood. At their core, these loans are a form of collateralized lending where Bitcoin secures access to liquidity. Understanding how do Bitcoin loans work is essential before using Bitcoin as collateral.

A BTC-backed loan begins with collateral. The borrower pledges Bitcoin to secure a loan denominated in fiat currency or stablecoins. The amount that can be borrowed is determined by the Loan-to-Value ratio, commonly referred to as LTV.

LTV represents the relationship between the loan amount and the value of the Bitcoin collateral. For example, a 40% LTV means that for every $100 worth of Bitcoin pledged, $40 can be borrowed. Lower LTVs reduce risk but limit liquidity. Higher LTVs increase liquidity but raise exposure to Bitcoin price volatility.

Bitcoin’s volatility is the defining risk factor of using Bitcoin as collateral for a loan. When Bitcoin’s price declines, the value of the collateral decreases while the loan amount remains constant. As a result, the LTV increases.

To manage this risk, loans backed by Bitcoin  include predefined thresholds. When the LTV rises beyond certain levels, a margin call is triggered. A margin call requires the borrower to either add additional Bitcoin collateral or repay part of the loan to restore a safer LTV.
Margin calls are not liquidations. They are risk management mechanisms designed to protect both borrower and lender. Liquidation occurs only if margin calls are ignored or if market movements are too rapid to manage within predefined buffers.

The borrower continues to pay interest throughout the loan term. Once the loan principal and interest are fully repaid, the Bitcoin collateral is released back to the borrower.

Loans backed by Bitcoin  are not designed for leverage or speculation. Using borrowed funds to increase Bitcoin exposure introduces compounding risk and undermines the purpose of the loan. These loans function best as liquidity tools for expenses, investments, or cash flow management unrelated to Bitcoin price speculation.

Debifi operates a peer-to-peer Bitcoin lending model with an emphasis on transparency and defined rules. Loans are structured conservatively, with clear LTV requirements, collateral terms, and communication around risk thresholds.

Automation can reduce friction, but it can also amplify risk during volatile market conditions. For this reason, Debifi emphasizes manual oversight and clear borrower communication rather than instant, automated liquidation systems.

Borrowers considering loans backed by Bitcoin  must assess their own risk tolerance honestly. Conservative LTVs, sufficient collateral buffers, and a realistic repayment plan are not optional - they are prerequisites.

Bitcoin-backed lending does not eliminate risk. It reallocates it. Instead of market timing risk associated with selling Bitcoin, borrowers take on collateral management risk. Understanding this trade-off is essential.

Used responsibly, Bitcoin collateralized loans  can be a powerful financial tool. Used carelessly, they can amplify downside exposure. Education and discipline determine the outcome.


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How Do Bitcoin-Backed Loans Work: Collateral, LTV, and Risk Explained

In January 2026, the Bitcoin market indicators and Debifi lending metrics reflected the following developments:

As of January 31, 2026, Bitcoin was priced at USD 78,689. During the month, the price fluctuated between a high of USD 77,250 and a low of USD 60,820. The maximum drawdown reached –21.3%. Average daily trading volume ranged between USD 35 and 45 billion, while 30-day Bitcoin volatility stood at approximately 2.15%.

Regarding Debifi’s lending metrics, the average loan-to-value (LTV) ratio was 60%, with an overall LTV range of 50% to 70%. The annual percentage rate (APR) varied between 8.5% and 20%. The average loan size amounted to USD 60,000, and loan durations ranged from 1 to 24 months.

Sources : Debifi open loan offers, Tradingview & BitBo

# January 2026 Overview

January was a month of **recalibration** and stress-testing, both for the global macroeconomic landscape and the Bitcoin-backed lending ecosystem.

Following a period of stability in December, the market entered a sharp corrective phase in late January. This Bitcoin downturn saw volatility double compared to the previous month's average, yet market liquidity remained remarkably robust. This price action was largely driven by a high correlation with the global market; as equity markets faltered, institutional algorithms triggered mechanical sell orders to mitigate Value at Risk (VaR). This automated liquidation by institutional funds occurred independently of Bitcoin’s strong underlying fundamentals.

This dynamic didn’t influence Debifi’s lending activity. Despite elevated market volatility and a sharp drawdown, **the platform continues to see new contracts being confirmed**, increased interest from institutional Lenders and Borrowers, and loans remained conservatively collateralized with stable loan-to-value ratios (average of 60%). This outcome highlights Bitcoin’s unique capacity to absorb price shocks while remaining usable as reliable collateral, as well as the effectiveness of Debifi’s disciplined four steps margin call framework.

As the Loan-to-Value (LTV) ratio approaches the threshold of 75%, the platform automatically triggers notifications via the mobile app and email, advising the borrower to either [top up their collateral or partially repay the loan](/blog/en/smart-loan-management). This proactive approach is essential as it empowers users to manage their risk in real-time, preventing unexpected liquidations during periods of high volatility.

Despite the month’s volatility, January’s conclusion remains positive. Bitcoin’s ability to function as robust collateral under pressure confirms the strength of this asset class. At Debifi, we are entering 2026 with a clear focus: scaling our platform while upholding the highest standards of transparency. Through our MultiSig architecture and sound risk management, we continue to offer a sanctuary for those seeking to leverage their Bitcoin without compromising on security.


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