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LTV, rehypothecation, cure window, margin call, and partial liquidation do not all mean the same thing — and the differences decide what happens to your bitcoin if the loan goes sideways.
Glossary data last verified August 23, 2026.
Read this glossary alongside the loans methodology and the comparison page. The goal is not to memorize jargon — it is to understand what question each loan product is really asking you to answer.
If a lender can re-use your bitcoin, your bitcoin is no longer fully yours. It is the heaviest factor (20%) in the Pledge loan score — the thing that turned 2022 lender stress into customer losses.
Everything else on this page is worth learning; this one is worth memorizing.
The ratio of borrowed dollars to the value of the Bitcoin collateral you post. Higher LTV means more borrowing power but earlier liquidation risk under stress.
The starting LTV is only half the story — the cushion up to the liquidation threshold is where borrower risk actually lives.
The staged LTV thresholds from starting LTV to margin call to liquidation — for example SALT’s staged 75% / 83.33% / 88% levels before a 90.91% forced sale.
The buffer between starting LTV and the liquidation threshold is the real risk metric. A thin ladder means a small price move can force a sale.
Annual Percentage Rate — the headline yearly cost of borrowing, fixed or variable. The number lenders lead with, but not the whole risk picture.
Point-in-time rates go stale. Compare APR to APR, not the "rate" a lender leads with, and check whether it is fixed or variable.
When a lender re-uses your posted collateral — lends it, pledges it, or trades against it — instead of holding it segregated. Materially changes your recovery position if the lender fails.
It is the heaviest factor (20%) in the Pledge loan score — the thing that turned 2022 lender stress into customer losses. If a lender can use your bitcoin, your bitcoin is no longer fully yours.
A third party holds the keys to your Bitcoin on your behalf. The opposite of non-custodial, where you retain key control.
Custody defines who can move the collateral — the trust axis of every loan. The custody spectrum runs custodial → multisig/collaborative → non-custodial.
You retain key control throughout; the smart contract is the counterparty. No lender can move your collateral, but you inherit smart-contract risk and, in DeFi, algorithmic liquidation.
Non-custodial removes the lender as a mover of your bitcoin, but replaces it with protocol risk — a different trade, not no risk.
A custody arrangement where multiple keys must sign to move Bitcoin, removing a single point of failure. Unchained uses a collaborative structure where the borrower controls 1 of 3 keys with a key-agent co-sign.
It splits control so no single party can unilaterally move the collateral.
Custody where the private key is split and never assembled in one place. Used by Figure and Xapo.
Key-split custody is a custody-model choice distinct from multisig, and Pledge scores the control model as a factor.
The lender’s formal notice that LTV has crossed a warning threshold and you must add collateral.
A margin call is the early warning that decides whether you can fix the position or the lender takes over.
The time you have after a margin call to add collateral before liquidation — Strike 72h, Unchained 24h, Xapo human-managed.
Lenders that publish no cure window leave you at the mercy of auto-liquidation. The margin-call-to-liquidation gap is where borrower control lives.
Partial = the lender sells only enough to restore LTV (Arch ~2% fee, Ledn 80% forced-sale tier). Final = the full forced sale.
A partial liquidation can be survivable; a full one is usually not.
The lender selling some or all of your BTC collateral when LTV breaches a threshold. Mechanics vary by cure window, partial vs total, and tax treatment.
Liquidation is when a loan becomes a realized loss — and, in the US, a forced taxable sale.
Independently reviewed evidence that a lender’s collateral or solvency matches its stated liabilities.
Reserves you can verify are reserves; reserves you can only be told about are a promise.
A pre-approved facility you borrow, repay, and re-borrow — Arch, Lava, Nexo, Coinbase/Morpho — as opposed to a fixed-term loan.
It reprices on your drawn balance, so the variable cost and liquidation behavior deserve the same scrutiny as a term loan.
A single principal borrowed for a set term — Ledn 12mo, Xapo 30/90/180/365d, SALT 12/36/60mo.
Fixed structure makes the rate and term explicit — but the custody and liquidation questions are unchanged.
A marketplace where lender-set terms are matched to borrowers (Debifi), as opposed to a single-product lender.
"The lender" is not one party — terms come lender-by-lender, so the safety score is less uniform.
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