English (en)

**The collapse of FTX, Celsius, and BlockFi in 2022 wasn’t just a market correction; it was a fundamental reckoning for the industry. It proved, violently, that "yield" generated in opaque, off-shore black boxes is indistinguishable from a Ponzi scheme, highlighting severe lending risks and broader platform risk.**

The trauma of those collapses fundamentally changed how intelligent capital operates. Today, founders and senior operators are deeply, and rightfully, risk-averse toward counterparty risk and platform blow-ups. Therefore the focus on risk management and asset protection is growing. At Debifi, we share this exact mindset.

## The Rehypothecation Disease
The core sin of the platforms that failed was rehypothecation. They took the Bitcoin you deposited as collateral and secretly lent it out to hedge funds to chase yield. When those hedge funds blew up, your Bitcoin vanished.

At Debifi, rehypothecation of Bitcoin is structurally impossible by design.

We do not play yield games. We do not lend your collateral to third-party market makers. Your assets are not pooled into an omnibus wallet that we control. Instead, your Bitcoin is locked in an isolated, transparent, on-chain Bitcoin MultiSig address.

## "Don't Trust, Verify" in Action 
Because of our architecture, you never have to trust a quarterly earnings report or a CEO's tweet about the company's "robust balance sheet." You can open a block explorer at any time of day or night and Bitcoingraphically verify that your Bitcoin is exactly where it is supposed to be.

Furthermore, you hold one of the keys. We cannot move your funds without your explicit Bitcoingraphic consent or the predefined conditions of the smart contract being met. This model reflects the safest approach to collateral lending and institutional-grade custody.

We built Debifi to be boringly secure. We offer a minimalistic feature set because complexity is the enemy of security. By stripping away the chaotic tokenomics and opaque lending pools of standard DeFi, we deliver  transparency, robust crypto risk management and the only thing that matters to serious capital: certainty.


Crypto risk management with transparent bitcoin multisig custody

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The End of the Black Box: Building Institutional Trust Without Trusting Institutions

March brought a phase of price consolidation coupled with a decrease in volatility. Closing the month on March 31, Bitcoin traded at **$68,209**. The asset's price journey saw it peak at **$75,987** (March 17th), before retracing to a monthly low of $64,976 (March 29th), which marked a maximum drawdown of -14.59%. Despite this tighter range, the daily spot volume remained robust with a strong 7-day average of $41.60 billion and the 30-day volatility cooled down, dropping to roughly 1.8%. 

Regarding Debifi's lending metrics, the average Loan-to-Value (LTV) ratio remained stable at 64.71%. Since December, we continue to observe a **<u>significant reduction in borrowing costs</u>**, with the average Annual Percentage Rate (APR) dropping from **13.55% to 10.75%**. This represents a substantial decrease of **280 basis points** (bps) in four months. This downward trend highlights an increasingly competitive lending environment and highly favorable conditions for users looking to unlock liquidity against their Bitcoin collateral.

During this month, we also launched two major upgrades : [Borrower Offers](https://debifi.com/blog/en/borrowers-offers) and the [Beta API](https://debifi.com/blog/en/api-beta-release).

_Sources : Debifi open loan offers, Tradingview & BitBox_


## March 2026 Overview

Despite the massive geopolitical upheavals in March (the war in the Middle East and the closure of the Strait of Hormuz), this month was characterized by a stabilization in the price of Bitcoin. 

During this month, Bitcoin stood out from the S&P 500 and traditional stocks with a correlation coefficient of approximately 0.35, confirming its role as an **independent asset** from mainstream finance.

This resilience underscores Bitcoin's viability as a collateral asset. Where conventional securities face severe downside risks from political instability, Bitcoin acts as a fundamentally uncorrelated asset. 

![Debifi BTC vs S&P 500](https://zr5pqljgeynt.compat.objectstorage.eu-zurich-1.oraclecloud.com/blog-staging-testnet/debifi_btc_vs_s_and_p_march_2026_2_e9dc093c40.png)
_Debifi Bitcoin vs. S&P 500 March Performance_

True to the "bear markets are for building" mindset, we’ve launched two major upgrades to significantly enhance user experience: **Borrower Offer** and the **beta version of our API**.

Our objective is twofold: to enable an ever-expanding audience to access liquidity without having to sell their bitcoins, and to connect financial institutions with this growing demand for credit by providing them with high-performance tools to manage their portfolios.

**Borrower Offer** is a complete new feature, accessible on our platform. We have made it possible for borrowers to submit loan offers <u>on their own terms.</u>

This feature can be found in the ‘My Offers’ section (see image below) and it allows the borrower to customize their loan offer including currency, term length and APR.

![Debifi Dashboard](https://zr5pqljgeynt.compat.objectstorage.eu-zurich-1.oraclecloud.com/blog-staging-testnet/HGF_2eha_WEAAF_5fm_6ecd142909.jpeg)
_Debifi Dashboard_

To meet the growing institutional demand, we are also proud to announce the official release of our **Beta API**. This interface allows developers to integrate our lending and borrowing flows while maintaining Debifi’s core principles: strict "No-Rehypothecation" and multi-signature escrow. To discover the full technical capabilities of this new infrastructure, visit our dedicated article: [Debifi Launches API Beta](/blog/en/api-beta-release)

We are thrilled to highlight Sygnum, the world’s first digital asset bank, as a key Early Adopter of our API. Their teams are currently working on an integrated contract flow utilizing our new infrastructure. This collaboration bridges the gap between regulated banking services and the sovereign, tailor-made Bitcoin custody that Debifi offers.

By releasing the API early, we can collaborate directly with partners like Sygnum and the wider developer network to fine-tune the product to the industry's real-world needs. With this new API, we offer the ultimate synergy between financial agility and uncompromising collateral protection, aligning with the latest bitcoin market update and trends.

Institutional partners and B2B interested in testing the API can apply for access by contacting <api@debifi.com>.

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Debifi & Bitcoin Snapshot for March 2026

**There is a distinct difference between getting rich and staying wealthy. Getting rich often requires concentrated risk; staying wealthy requires strategic capital preservation. For founders, early Bitcoin operators, and long-term investors, the biggest threat to generational wealth isn't market volatility - it’s the tax code and opportunity cost. This is why Bitcoin wealth preservation and a strong bitcoin investment strategy are critical.**

As your Bitcoin portfolio grows, so does your need for real-world liquidity. You might want to purchase real estate, fund a new startup, or simply diversify your traditional portfolio. Historically, the only way to do this was to sell your Bitcoin.

## The Tax Trap and the Opportunity Cost

Selling your core assets triggers two massive wealth killers:

9. **Capital Gains Tax:** Depending on your jurisdiction, selling can instantly wipe out 20% to 40% of your purchasing power. You are paying the government for the privilege of accessing your own success.
10. **Loss of Upside:** Bitcoin is an apex asset. Selling means permanently stepping off the train. If you sell at $80k to buy a house, and Bitcoin reaches $250k in the next cycle, that house just cost you three times its market value in Bitcoin opportunity cost.

## The Institutional Approach: Structured Use

High-net-worth individuals and family offices rarely sell their prime assets. They borrow against them.

Debifi, as a Bitcoin collateralized lending platform, enables you to unlock liquidity while maintaining your long-term position. By placing your Bitcoin into a highly secure, non-custodial MultiSig vault, you can access fiat liquidity without creating a taxable event. Your capital continues to compound. Your upside remains entirely intact.

Furthermore, our lending structure is designed for predictability. We don't deal in hyper-volatile DeFi liquidations triggered by momentary flash crashes. We provide transparent, understandable usage parameters built for individuals who view their Bitcoin not as a trading vehicle, but as their core treasury. 

Preserve your capital, optimize your liquidity, and never sell your conviction.


Strategic liquidity and Bitcoin wealth preservation concept

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Strategic Liquidity: Why Selling Bitcoin is the Ultimate Wealth Killer

As we announced in our recent article, ["From Reactive to Proactive: Introducing Borrower Offers on Debifi"](/blog/en/borrowers-offers), we are fundamentally shifting the power dynamic in the lending market. Instead of settling for pre-set terms, you can now shape the market according to your own rules and publish offers as a borrower, leveraging a more flexible approach to structured lending.

In this follow-up, we are diving deeper to show you exactly how to use this feature in practice with our [new video tutorial](https://www.youtube.com/watch?v=NyBCRWMl-fk). We designed this feature specifically with the needs of our core users in mind: Bitcoin Founders, Senior Operators, and BTC-Native Investors.

## Liquidity Without Losing Control
We understand that for our users, capital preservation is often far more important than chasing maximum returns at any cost. Whether you are a founder seeking liquidity without selling your conviction (your tokens) or an investor structuring your wealth, the "Borrower Offer" feature provides ultimate flexibility. Because the trauma of counterparty risks - like the FTX collapse - still lingers in the space, all our loans are built on [transparent MultiSig technology](/blog/en/security). Thanks to self-custody, you stay in control of your keys at all times.

## Your Loan, Your Terms – The Video Guide
Our video walks you through the precise process of publishing a live offer. Here are the key parameters you can now define yourself:

- **Desired Amount and Currency:** Choose your preferred currency (fiat or stablecoins) and set your custom loan size. Our platform is perfectly optimized for typical loan sizes ranging from $50k to $1M, supporting efficient bitcoin liquidity strategies.
- **Set Your Own APR:** You dictate the annual percentage rate you are willing to pay. This empowers you to use leverage deliberately and predictably, rather than speculatively.
- **Term and Repayment Schedule:** Determine a loan duration and structure that aligns perfectly with your financial planning. This allows you to cleanly separate your long-term holdings from your operational capital and liquidity needs through tailored structured lending solutions.

We built Debifi for people who have built in Bitcoin and plan to stay. There are no black boxes or yield games here - just enterprise-grade security you can reason about.

Watch our [full video walkthrough on YouTube](https://www.youtube.com/watch?v=NyBCRWMl-fk) and head over to the Debifi platform to create your first customized borrower offer today!

Unlock Bitcoin liquidity using borrowers offers

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Step-by-Step: How to Create Your Custom "Borrower Offer" on Debifi

**Self-custody is a spectrum. On one end, you have hot wallets connected to the internet 24/7. On the other end, you have air-gapped hardware devices like the Coldcard - the gold standard for Bitcoiners who refuse to compromise on secure Bitcoin storage.**

Because Debifi is built for uncompromising Bitcoin holders, a significant portion of our users secure their MultiSig setups with Coldcard hardware wallet devices. However, combining institutional-grade lending contracts with air-gapped hardware introduces operational complexities that require a specific mindset.

## Mastering the Air-Gapped Signature

When you enter a loan agreement on Debifi, you aren't just clicking "I agree" on a web form. You are Bitcoingraphically signing a Partially Signed Bitcoin Transaction (PSBT).

Many users encounter friction when trying to pass these signatures back and forth. The most secure method - and the one we strongly advocate for - is utilizing the Coldcard’s MicroSD slot.

11. Export the PSBT from the Debifi interface to your MicroSD card.
12. Insert the card into your Coldcard (powered only by a wall outlet or battery pack, never a data cable).
13. Verify the exact contract details and MultiSig parameters directly on the Coldcard’s screen.
14. Sign the transaction, move the SD card back, and broadcast.

This process ensures your private keys remain mathematically quarantined from the internet at all times, following **Bitcoin self-custody** best practices.

## The Reality of PIN Resets and 2FA
Security is about eliminating backdoors. This philosophy dictates how our app handles local security. If you forget your Debifi app PIN, you might be frustrated to find there is no "Forgot PIN? Click here" button. Instead, you are required to delete the app entirely and reinstall it.

Why? Because your PIN encrypts sensitive data locally on your device. If we built a backdoor to reset it, we would be building a vulnerability that hackers could exploit. Deleting the app wipes the slate clean, ensuring brute-force attacks are mathematically impossible.

Similarly, our Two-Factor Authentication (2FA) is aggressively tuned. If you experience delays in receiving 2FA emails, ensure your provider isn't filtering encrypted or automated institutional emails. We enforce 2FA strictly because the bridge between your identity and your on-chain assets must be fortified at every single chokepoint, ensuring Bitcoin transaction security.


Bitcoin self-custody with Coldcard hardware wallet

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Hardware Sovereignty: A Deep Dive into Coldcard, 2FA, and Air-Gapped Signatures

**The Bitcoin industry has spent the last decade obsessed with user experience. "Reduce friction," "make it one-click," and "seamless onboarding" became the mantras of every fintech startup. But in the pursuit of convenience, the industry forgot what it was actually building: financial infrastructure for sovereign wealth.**

At Debifi, we serve founders, senior operators, and high-net-worth investors managing significant Bitcoin positions. Ensuring Bitcoin security should have been the top priority. When you are dealing with capital preservation at this scale, speed is never the primary objective. Sovereignty is. And true financial sovereignty requires a deliberate, rigorous, and sometimes demanding setup process, focusing on operational security.

**The 4-Hour Rule: Data Minimization in Practice** One of the most frequent questions our support team receives is why an unconfirmed account is automatically deleted after 2 to 4 hours. In a world where platforms beg to keep your email address in their database forever, this seems counterintuitive.

But it’s not a bug - it’s a strict security parameter.

When you begin onboarding with Debifi, you are initiating a highly secure, non-custodial relationship. If you do not confirm your email or safely back up your seed phrase within that initial 4-hour window, we assume the environment might not be secure, or you were interrupted. Rather than leaving a partially authenticated, vulnerable account floating in our database, our system aggressively purges the data. This practice is part of Bitcoin security best practices and ensures safety of your Bitcoin.

We practice absolute data minimization. If you aren't ready to complete the setup, we don't want your data. It’s that simple.

**Why the Web-to-Mobile Dance Matters** New users often note that our registration requires switching between the web platform and the mobile app. Again, this is not accidental. By separating the initial data entry from the secure biometric and Bitcoingraphic environment of your mobile device, we establish a multi-layered authentication perimeter. This physical device separation ensures that a compromised browser cannot easily hijack your entire loan setup.

Yes, this onboarding process requires your undivided attention. It requires you to sit down, focus, and take your operational security seriously for 15 minutes. But for the peace of mind that comes with knowing your assets are truly yours, that friction is the ultimate feature.


Operational security in Bitcoin-backed lending

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The Philosophy of Friction: Why True Security Can’t Be "One-Click"

Bitcoin-backed lending works best when expectations are aligned before a loan begins. For this reason, Debifi’s process prioritizes clarity, structure, and informed consent over speed or convenience.

**Step 1: Onboarding and Eligibility**

The process begins with onboarding and compliance checks. Borrowers must understand the legal, operational, and financial implications of using Bitcoin as collateral. This stage is not a formality. It establishes the framework within which the loan operates and ensures that both parties share a common understanding of risk.

**Step 2: Loan Structuring**

Loan structuring defines the core parameters of the agreement: loan amount, LTV, duration, interest rate, and repayment expectations. Conservative assumptions are encouraged. Lower LTVs reduce the likelihood of [margin calls and liquidation](/blog/en/forced-liquidation), especially during periods of high volatility. Borrowers should assess their ability to service the loan under adverse market conditions - not just in optimistic scenarios.

**Step 3: Collateral Setup and Custody**

Bitcoin collateral is transferred according to predefined custody rules. Borrowers are informed about where their Bitcoin is held, who controls it, and under which conditions it can move. Transparency at this stage is critical. Custody structure defines counterparty risk and shapes borrower confidence throughout the loan term.

**Step 4: Loan Execution and Monitoring**

Once the loan is executed, borrowers receive funds and begin servicing interest. Collateral health must be monitored continuously. Margin calls are communicated clearly, and borrowers are expected to respond promptly if thresholds are reached.

**Step 5: Repayment and Collateral Release**

Upon full repayment of principal and interest, the Bitcoin collateral is released back to the borrower. The process concludes where it began: with the borrower retaining ownership of their Bitcoin.

**Structure Over Speed**

Debifi’s approach reflects a broader philosophy. Bitcoin-backed lending is not about speed or leverage. It is about structured access to liquidity under clearly defined rules.
Clarity before execution prevents problems later. In Bitcoin-backed lending, structure is not friction - it is protection.


How to get loans using Bitcoin as collateral

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How to get loans using Bitcoin as collateral with Debifi: Process, Structure, and Expectations

In recent years, the digital asset market has learned a painful lesson: transparency and control are non-negotiable. While many traditional platforms operated as "black boxes," Debifi has remained steadfast in its commitment to a non-custodial architecture where users maintain absolute control over their keys.

Driven by a significant increase in demand from B2B partners and institutional players for scalable, secure solutions, we are taking the next step: **The Launch of the Debifi API Beta**.

## Bridging the Gap for the Experienced Market Participant

Our community consists of seasoned professionals - Founders, Senior Operators, and Bitcoin-Native Investors - typically with 7 to 15+ years of experience in tech and finance. For these decision-makers, time is a high-opportunity-cost asset, and the requirement for robust structure and security is paramount.

The Debifi API is designed to bridge the gap between uncompromising security and automated scalability, providing "security you can reason about".

## Core Functionality: Automation Without the "Black Box"
Unlike centralized providers, our API is built on verifiable processes and minimal trust assumptions. It allows institutions to operate an automated lending platform as well as automate the heavy lifting of Bitcoin-backed lending without the "DeFi chaos" or custodial opacity. Key features include:

- **Contract Creation:** Automated generation of loan agreements based on predefined, conservative risk parameters.
- **Escrow Initialization:** Programmatic orchestration of multi-sig addresses to ensure secure collateral management.
- **Status Monitoring:** Real-time tracking of on-chain confirmations and collateralization levels via a digital lending platform API to ensure total transparency.

## Use Cases: From Treasury to Embedded Finance

We see this API as the backbone for a new generation of embedded lending solutions and financial services tailored to those who prioritize capital preservation:

22. **Corporate Treasury Management:** Access liquidity without selling your core Bitcoin holdings - providing "liquidity without selling your conviction".
23. **Embedded Finance for Banks:** Regulated institutions can seamlessly integrate Bitcoin-backed lending using embedded lending API solutions and scalable digital lending platform APIs into their existing banking ecosystems.
24. **White-Label Solutions:** Fintechs and startups can offer secure lending under their own brand, using Debifi’s infrastructure as a reliable backend.
25. **Reporting & Compliance:** Automated data feeds for audits, tax planning, and regulatory requirements.

## Join the Beta Phase
We are rolling out this Beta in close collaboration with our first institutional partners to ensure the product evolves alongside the needs of the market. Our focus remains on creating a "set it up once, sleep well" experience for professionals who value stability over speculative growth.

For those who want to use capital efficiently while ensuring they stay in control of their assets with zero rehypothecation, the Debifi API provides the ideal infrastructure.

### Interested in Beta Access?
Institutional partners and B2B interested in testing the API can apply for access by contacting **api@debifi.com**.

For more information on our vision for non-custodial finance, visit: [https://debifi.com](https://debifi.com)



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Scaling Non-Custodial Infrastructure: Debifi Launches API Beta

## When Adding Collateral or Repaying Your Loan Partially Makes Sense

Forced liquidation is one of the few moments in a loan’s lifecycle where events can escalate quickly and usually against your interests.

For those using Bitcoin-backed loans to access liquidity without selling long term holdings, understanding how liquidation works and learning how to actively manage risk is crucial.

In a previous piece, we explored what forced liquidation is, how it functions, and why it exists in collateralized lending. If you haven’t checked it out yet, it’s worth a read:

 👉 [*Forced Liquidation: What It Is and Why It Happens*](https://debifi.com/blog/en/forced-liquidation?utm_source=blog&utm_medium=blog_post&utm_campaign=froced_liquidation)

In this follow up, we’ll focus on two practical steps borrowers can take to avoid liquidation altogether:

- Adding more collateral to the loan  
- Partially repaying the loan

Both are simple in concept, yet highly effective when used thoughtfully.

## A Quick Recap: What does liquidation mean?

Forced liquidation happens when your collateral value falls below a predefined threshold relative to your outstanding loan.

At this point, portions of your collateral may be automatically sold to protect the lender and maintain loan stability. While this mechanism is essential for any collateralized lending system, it tends to trigger during periods of high volatility \- precisely when borrowers would prefer not to be forced sellers.

The goal isn’t to “outsmart” the liquidation mechanics. It’s to stay comfortably clear of them. And that’s where active loan management comes in.

## When Does It Make Sense to Add More Collateral?

Adding collateral boosts the safety buffer of your loan by improving your loan-to-value (LTV) ratio. This can be a smart move when:

- **Market volatility rises:** Sharp downward swings can push LTVs closer to liquidation thresholds faster than anticipated.
- **Your loan is long-term by design:** If your plan is to hold both Bitcoin and your loan over an extended period, adding collateral reduces the need for constant monitoring.
- **You prefer peace of mind over hyper-optimization:** A slightly overcollateralized position often beats one that demands constant attention.

For many Debifi users, this follows a simple principle:

*Preserve first. Optimize second.*

## When Does Partial Repayment Make Sense?

Partially repaying your loan lowers the outstanding principal, which reduces your LTV without altering your collateral position. This approach can be ideal when:

- **You have excess liquidity:** Paying down part of the loan may be more efficient than letting capital sit idle elsewhere.
- **You want to reduce risk without adding more collateral:** Particularly relevant if your Bitcoin is spread across multiple wallets or governance setups.
- **You’re approaching a critical LTV level:** Even a modest repayment can meaningfully expand your margin of safety.

Partial repayment is usually tactical \- not a way to exit a loan, but a method to rebalance it.

## Adding Collateral vs. Repaying the Loan: How to Weigh the Options

Both strategies achieve the same ultimate goal: lowering your effective LTV. The difference is simply which resource you’re willing to deploy:
- **Adding collateral** (Bitcoin) is best for: maintaining loan size
- **Partial repayment** (Fiat/Stablecoin) is best for: reducing leverage

There’s no universally “better” option, only what aligns with your structure, liquidity needs, and risk tolerance.

## How to Add Collateral or Partially Repay a loan on Debifi

Debifi makes both actions transparent and fully borrower controlled:

- **Adding collateral:** Increase your collateral within your existing loan, improving your LTV without altering loan terms, by simply sending an onchain transaction to the escrow address.
- **Partially repaying your loan:** Reduce your outstanding principal at any time, lowering leverage while keeping the loan active, by sending the funds to the provided payment details of the lender.

No hidden mechanics, no yield tricks, just straightforward ways to adjust your position.

## Final Thought: Risk Management Is a Feature, Not a Reaction

Forced liquidation isn’t a failure \- it’s a safeguard.

The most resilient borrowers, however, treat liquidation thresholds as levels to never approach, rather than crises to manage at the last minute.

Adding collateral or partially repaying the loan isn’t an emergency measure. It’s a proactive strategy for long-term holders who want liquidity without relinquishing control.

If your priority is preserving capital, maintaining reputation, and building structures you don’t have to constantly monitor, proactive loan management isn’t optional. It's essential.

Loan management: repaying a loan or adding collateral

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Adding Collateral or Repaying Loans: Smart Loan Management

[Debifi ](https://debifi.com)is a non-custodial lending platform where you can borrow against your bitcoin without selling it. Your bitcoin stays secure in a multisig escrow while you get instant liquidity.

Here's how it works, and how to get your first loan.

## How It Works

When you take out a loan, your bitcoin goes into a 3-of-4 multisig escrow. This means no single party controls your collateral—it's locked specifically for your loan and can only be released when you repay or if there's a default.

The Debifi app handles everything: signing transactions, managing the escrow, and coordinating loan repayment. When you repay the loan, you get your bitcoin back.

## Getting Started: 6 Steps

### Step 1: Download the App
![Step 1](https://zr5pqljgeynt.compat.objectstorage.eu-zurich-1.oraclecloud.com/blog-production-mainnet/step1_9b8d036b42.jpg)

Head to debifi.com/app and download the Android app. Create an account with your email, then set up a strong PIN and enable Two-Factor Authentication (2FA).

### Step 2: Back Up Your Seed Phrase
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Write down your 12-word seed phrase on paper and store it somewhere safe. This is the only way to recover your account if something goes wrong. Don't skip this step.

### Step 3: Link Your Device
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Use your 2FA code to link the app to your account. This connects your phone to Debifi's web platform so you can browse loans and manage your account.

### Step 4: Browse Loan Offers

Go to https://debifi.com/offers and check out available loans. You'll see different terms, rates, and amounts from institutional lenders.

### Step 5: Sign the Loan
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Found a loan you want? Open the app and sign the contract. The app will generate your public keys and set up the multisig escrow for your collateral.

### Step 6: Deposit and Get Paid
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Send your bitcoin to the multisig escrow address. Once the deposit confirms, the lender sends your loan funds to your chosen address. Done.

That's it. Debifi lets you put your bitcoin to work without giving it up. If you've been sitting on bitcoin but need cash, this is one way to have both.

Download the app at debifi.com/app to get started.


Debifi Blog