English (en)

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.


Debifi monthly newsletter for January 2026

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Debifi & Bitcoin Snapshot for January 2026

For many Bitcoin holders, the need for liquidity does not come from speculation or lifestyle inflation. It comes from practical realities: taxes, business expenses, investment opportunities, or temporary cash flow gaps. When this moment arrives, the most common reaction is also the simplest one - sell Bitcoin.

Selling Bitcoin feels intuitive. It converts a digital asset into spendable currency quickly and with minimal friction. But what feels simple in the short term often turns out to be expensive in the long term.

The first cost of selling Bitcoin is taxation. In most jurisdictions, selling Bitcoin triggers a taxable event. Capital gains taxes reduce the net amount of liquidity received and permanently lower the Bitcoin position. Even in regions with favorable tax treatment, selling creates reporting obligations and strategic complexity that many holders underestimate.

The second cost is opportunity cost. Bitcoin is a scarce asset with a fixed supply and no dilution mechanism. Selling Bitcoin removes exposure to its future upside. This is not a theoretical concern. Many long-term holders have experienced the regret of selling Bitcoin to solve a short-term problem, only to watch its value increase significantly later. Rebuying Bitcoin often happens at higher prices, turning a temporary liquidity need into a permanent loss of Bitcoin ownership.

The third cost is irreversibility. Liquidity needs are usually temporary. Selling Bitcoin is permanent. Once Bitcoin is sold, the position is gone. The decision cannot be undone without re-entering the market under new conditions.

These three factors - taxation, opportunity cost, and irreversibility - make selling Bitcoin a structurally inefficient solution for many liquidity needs.

This does not mean selling Bitcoin is always wrong. There are scenarios where reducing exposure is intentional and appropriate. However, selling should be a deliberate portfolio decision, not a default response to short-term liquidity pressure.

An alternative approach is to borrow against Bitcoin.

Bitcoin-backed loans allow holders to use Bitcoin as collateral to access liquidity while maintaining ownership and economic exposure. Instead of selling the asset, Bitcoin is temporarily pledged under clearly defined terms. Once the loan is repaid, the Bitcoin is released back to the borrower.

This structure aligns better with the long-term conviction many Bitcoin holders have. It recognizes that liquidity needs often exist alongside a desire to maintain Bitcoin exposure.
However, there are risks of borrowing against Bitcoin. . Bitcoin’s volatility introduces collateral risk. Poorly structured loans, excessive leverage, or a lack of risk management can lead to margin calls or [liquidation](https://debifi.com/blog/en/forced-liquidation).

For this reason, Bitcoin-backed lending should not be viewed as a shortcut or a speculative tool. It is a financial instrument that requires discipline, conservative assumptions, and a clear repayment strategy.

At Debifi, Bitcoin-backed lending is positioned as a pragmatic liquidity solution for responsible Bitcoin holders. The goal is not to maximize leverage or chase yield, but to provide structured access to liquidity without forcing unnecessary Bitcoin sales.
Selling Bitcoin may solve a problem today. Loans against Bitcoin, when used conservatively, can solve the same problem without permanently reducing long-term exposure. Understanding this distinction is the first step toward more efficient financial decisions with Bitcoin.


Loans against Bitcoin as alternative to selling BTC

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Why Selling Bitcoin Is Often the Worst Way to Access Liquidity

## 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