Debifi

What happens if BTC drops.

The single most important question on a Bitcoin loan. With Debifi, liquidation is a managed process. If your loan-to-value rises toward the liquidation threshold below, Debifi works through margin calls before any collateral is sold.

At Debifi's 70% opening LTV, BTC would have to fall 22% before a position opened at that LTV reaches the 90% liquidation threshold.

Cure window: Quote dependent.

What Debifi publishes: Marketplace BTC loans: lenders set LTV 30–70% (70% marketplace max). Margin call from ~75% LTV, forced liquidation at 90% (a lender may set a custom liquidation ratio lower than 90%). Exact terms vary by lender/agreement. https://debifi.com/faq

The terms, translated.

With Debifi, the “contract” is the loan agreement and the platform’s risk parameters. We've pulled the key terms from Debifi's own data and translated them into plain English.

How Debifi compares to its closest cousins.

The org, the founder, the governance.

Debifi is tracked as a marketplace-style BTC loan route. Pledge uses conservative placeholder product terms until individual quotes, lender identities, and current collateral agreements are verified. Do not compare its placeholder APR/LTV as a guaranteed offer.

The 8-factor breakdown.

Multi-Sig. Scores 8/10 (solid) on the custody axis. Non-custodial designs score highest because no third party can move collateral; custodial designs lose points proportional to operator discretion.

Policy: none. Scores 9/10 (strong). "Strict" / "no-rehypothecation" policies score highest because collateral cannot be lent out; "permitted" policies lose points for exposure to counterparty failure on the re-pledged BTC.

Scores 6/10 (moderate). Programmatic on-chain liquidation at a fixed LTV scores highest (predictable, no operator discretion); discretionary or off-chain liquidation processes lose points proportional to opacity and timing risk.

Regulatory status: undisclosed. Scores 4/10 (weak). US/EU-regulated lenders with explicit licensing score highest; offshore or DAO-governed entities lose points because there's less recourse if something goes wrong.

No public reserves reporting. Scores 4/10 (weak). Without auditable reserves disclosure, depositors have no independent confirmation that the assets exist and are unencumbered.

Scores 6/10 (moderate). Lenders that publish operating reports, smart-contract code, and live rate/LTV parameters score highest; those that bury terms in PDFs or change rates without notification lose points.

3+ years operating since 2023. Scores 4/10 (weak). Older operations with surviving stress events (March 2020, Nov 2022, etc.) score highest; younger or untested operations lose points proportional to how many full cycles they've operated through.

Scores 5/10 (moderate). Loan agreements with explicit liquidation order, segregated-account language, and clear borrower recourse score highest; ambiguous default terms lose points.

Questions readers actually ask about Debifi.