English (en)

Most[ Bitcoin lending ](https://debifi.com)platforms will tell you they're "non-custodial." Then you read the fine print and discover your coins are pooled in some shared wallet, accessible whenever the company feels like moving things around. 

That's not how we built Debifi. 

Every loan on our platform gets its own dedicated multisig escrow. Your Bitcoin doesn't sit in a pool - it's locked in a unique address that requires multiple independent signatures to move. Not just ours. Not just yours. Multiple parties, with the rules enforced at the protocol level. 

Here's exactly how it works. 

## One Contract, One Escrow Address. Always.


 <img src="https://zr5pqljgeynt.compat.objectstorage.eu-zurich-1.oraclecloud.com/blog-production-mainnet/One_Contract_One_Escrow_Address_Always_40c90f642b.png" alt="One Contract, One Escrow Address. Always." width="700"/>


When you initiate the loan, we generate a P2SH multisignature Bitcoin address specifically for that contract by using 4 different public keys. Think of it as a vault that needs three out of four keys to open. 

**Who holds those keys?**
- You (the borrower) 
- Your lender 
- Debifi (for arbitration only) 
- An independent Authorized Key Holder (the failsafe) 

You deposit Bitcoin directly to that address. Once two on-chain confirmations come through - roughly 20 minutes - your collateral locks in for the full loan term. That's it. 

Here's the critical part: nobody can touch those funds alone. You can't. We can't. Nobody can. Any transaction from that address needs three signatures out of four. 
That's not a policy - it's cryptographically enforced by Bitcoin's script. 

We don't hold your funds. Never have, never will. We keep one key solely for arbitration, and that key is useless without two others agreeing to sign. Your Bitcoin stays verifiable and auditable on-chain, controlled by independent parties who each have their own interests to protect. 

## Why 3-of-4 Instead of 2-of-2?

Good question. A 2-of-2 multisig sounds secure until someone loses their key or disappears. Now you've got funds locked forever with no recovery path. 

A 2-of-3 setup is better, but if the platform holds one key, you're back to trusting them not to collude with one other party. Not great. 

Our 3-of-4 structure solves this. Even if one keyholder vanishes - lost phone, forgotten password, goes off-grid for months - the remaining three can still execute the contract according to protocol rules. You get redundancy without creating a single point of control. 

That fourth key, held by an independent Authorized Key Holder, handles specific scenarios: dispute resolution or contractually triggered liquidations. It's not a backdoor. It's a tiebreaker that keeps the system functional without giving any single entity unilateral power. 

Explicit participants. Explicit thresholds. Verifiable outcomes. That's what trust-minimized lending looks like. 

## No Rehypothecation. Ever.


 <img src="https://zr5pqljgeynt.compat.objectstorage.eu-zurich-1.oraclecloud.com/blog-production-mainnet/No_Rehypothecation_76b7274e66.png" alt="No Rehypothecation" width="700"/>


Let's be direct: some platforms take your collateral and quietly lend it out again. They call it "capital efficiency." We call it rehypothecation, and we don't do it. 

Your Bitcoin stays in its unique on-chain escrow until the loan's fully repaid. There's no pooling. No reinvestment. No creative reuse of collateral. 

The lender only transfers funds after they've confirmed your collateral is locked in the multisig. Everything's transparent and observable on the blockchain - no intermediaries skimming value or playing games with your coins behind the scenes. 

## Transparency You Can Actually Verify

 <img src="https://zr5pqljgeynt.compat.objectstorage.eu-zurich-1.oraclecloud.com/blog-production-mainnet/Transparency_You_Can_Actually_Verify_05c5f41cca.png" alt="No Rehypothecation" width="700"/>


We design for verification, not blind trust. Here's how: 

- **On-chain visibility:** Every contract has its own multisig address. You can track your collateral on any block explorer, anytime. If it's moving, you'll see three signatures on-chain authorizing it. 
- **Two confirmations required:** We don't advance the contract workflow until your deposit has two blockchain confirmations. That's roughly 20 minutes, ensuring transaction finality before anything happens. 
- **Client-side key control:** You generate and store your keys using the Debifi Mobile App on a separate linked device. Your keys never touch our servers. Each signing request requires PIN authentication, 2FA, and device verification - so even if someone compromises your dashboard account, they can't sign transactions without physical access to your device. 
- **Hardware wallet support:** We support hardware wallets that give users full control over key generation and storage. 
- **Open-source code:** We're releasing the Debifi App under an open-source license. Anyone can inspect, verify, and audit our security model. Don't trust us - verify the code yourself. 
- **Real-time alerts:** Margin calls, LTV updates, and liquidation warnings hit your dashboard, mobile app, and email instantly. You're never flying blind. 

This isn't security theater. It's an auditable system where you can verify every claim we make. 

## What Happens When Markets Go Haywire?

Security isn't just about custody - it's about how the system behaves when Bitcoin drops 20% in a day. 

Our risk engine follows predictable, rule-based responses. No discretion, no exceptions: 

- **Over-collateralization from day one:** All loans start over-collateralized, so you've got breathing room when markets swing. 
- **Three-tier margin call ladder:** We send alerts at 75%, 80%, and 85% LTV. That's three chances to add collateral, partially or fully repay your loan without any fees, before anything drastic happens. 
- **Automatic liquidation at 90% LTV:** If your position hits 90%, the contract automatically triggers Forced Liquidation. Your collateral gets liquidated according to the terms you agreed to, and any remaining Bitcoin comes back to you. 
- **24-hour grace period at maturity:** If you don't repay on time, you get a 24-hour window before automatic settlement kicks in. This prevents collateral from being liquidated because you missed a notification. 
- **Bounded arbitration:** In rare disputes, our resolution protocol - executed with the Authorized Key Holder - ensures fairness without compromising the multisig structure. Nobody, including us, can override the 3-of-4 quorum requirement. 

Even under extreme conditions, your Bitcoin stays locked, auditable, and recoverable within a transparent, rule-based framework. No black boxes. No surprises. 

## The Bottom Line

**SECURITY ISN'T A FEATURE WE BOLTED ON - IT'S THE FOUNDATION OF EVERY TRANSACTION ON DEBIFI.** 

Your Bitcoin stays in non-custodial multisig escrow. Movement requires consensus from independent parties. Collateral never gets rehypothecated. Everything's verifiable on-chain. 

If you're tired of platforms that ask you to trust them, this is the alternative: cryptographic guarantees enforced by Bitcoin itself.

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Your Bitcoin, Your Keys, Your Rules: How Debifi's Multisig Actually Works

For institutional lenders facing compressed spreads and counterparty opacity across traditional credit markets, Bitcoin-collateralized lending presents a sharp alternative: real collateral, secured on-chain, with transparent execution and strong yield.

**Debifi** is designed for precisely this. Built for institutional lenders, the platform offers a non-custodial, multi-signature model that puts control, verification, and risk management directly in the hands of the lender.

### A Model Structured for Institutional Capital

Each loan is underwritten against Bitcoin, locked in a **3-of-4 multisig escrow** managed between lender, borrower, and two independent signers - ensuring no single party can move funds without consensus.

This structure supports **non-custodial execution** while enabling automated triggers: margin calls are issued when collateral value reaches 75%, 80%, and 85% LTV. 

All parties and movements are visible on-chain. There's no reliance on trust - only on math and multisig.

### Live Market & Lending Scope

- **Loan amounts:** From **$10,000 to $700,000** via public marketplace, with capacity for **bespoke loans exceeding $5 million** through a **dedicated large volume framework**
- **Terms:** Up to **12 months**, fully negotiable
- **Yields:** Typically **10%–14% APR**, based on risk and duration
- **Supported currencies:** **USD, EUR, CHF, GBP, AED, BRL,  USDC, USDT**

Borrowers range from established mining firms to Bitcoin only startups and long-term holders across the US, EU, Switzerland, and Latin America. 
### Verified Security & Strategic Guidance

Debifi has completed **three independent security audits**, including the most recent by **[Certik](https://www.certik.com)**, a leading blockchain security firm. The platform’s architecture is built on **multisig escrow technology** and follows a **strict no-rehypothecation policy**, ensuring that lender assets remain secure, isolated, and fully verifiable on-chain.

Advisors to Debifi include **[Willy Woo](https://x.com/woonomic)** and **[Preston Pysh](https://x.com/PrestonPysh)**, who bring deep macro insight, market structure expertise, and long-term strategic guidance to the platform.

### Designed for Risk-Aware Yield Generation

- **Secure Multisig Custody:** No centralized control; all fund movements require quorum
- **Live LTV Monitoring:** Automated alerts and on-chain transparency
- **No Commingling:** Every escrow is isolated and auditable
- **Transparent Terms:** 1.5% borrower-paid origination fee; no early repayment penalties
- **Lender Autonomy:** Set your own offers, durations, and currency exposure

### Institutional Endorsement

Debifi is trusted by partners like **Blockstream**, **AnchorWatch**, **Free Madeira**, and **Hodling SA**, and backed by investors including **Ten31**, **Epoch VC**, **Plan B Fund**, **Fulgur Ventures**, and **Axiom**.

### Begin the Diligence Process

Explore how your institution can generate secured yield in the Bitcoin lending space. Visit [**debifi.com**](https://debifi.com) to review open offers, initiate onboarding, or speak directly with the team. Institutional capital deserves institutional-grade infrastructure - and now, it has it.
### Contact
For further discussion and partnership inquiries:
Email: [lenders@debifi.com](mailto:lenders@debifi.com)



A Secure Channel Into Bitcoin-Backed Yield

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A Secure Channel Into Bitcoin-Backed Yield.png

## Debifi

Debifi is&nbsp;a&nbsp;non-custodial lending platform designed to&nbsp;unlock Bitcoin&rsquo;s potential
as&nbsp;a&nbsp;premier form of&nbsp;collateral. Offering secure multisig escrow technology and a&nbsp;commitment
to&nbsp;transparency, Debifi specializes in&nbsp;providing unmatched [Bitcoin loan solutions](https://debifi.com) for
both individuals and institutions. Founded by&nbsp;leaders in&nbsp;the Bitcoin industry, the platform is&nbsp;setting
a&nbsp;new standard for Bitcoin-first financial services.

### A&nbsp;Vision for Bitcoin Holders: &laquo;Don&rsquo;t Sell, Borrow&raquo;

Debifi remains dedicated to&nbsp;empowering Bitcoin holders with innovative financial solutions, echoing Michael
Saylor&rsquo;s well-known philosophy:

> Bitcoin is&nbsp;a&nbsp;long-term asset, and the key to&nbsp;preserving its value is&nbsp;to&nbsp;never sell&nbsp;it.

This approach underpins the company&rsquo;s mission: providing Bitcoin holders with seamless access to&nbsp;capital
while maintaining their assets intact.

### Leading Investors Behind Debifi

The investment round was led&nbsp;by [Timechain](https://timechain.concentric.vc), with participation from notable
backers, including:

- [Axiom BTC Capital](https://www.axiombtc.capital)
- [Fulgur Ventures](https://fulgur.ventures)
- Plan B&nbsp;Fund
- Epoch VC
- Cep Private Equity
- Exodus I&nbsp;GmbH

Prominent Bitcoin advocates [Willy Woo](https://x.com/woonomic), Brad Mills, Chris Hunter, and Giacomo Zucco.

This diverse group of&nbsp;investors brings strategic insights and a&nbsp;shared commitment to&nbsp;advancing Bitcoin
as&nbsp;a&nbsp;financial cornerstone.

### Expert Opinions on&nbsp;Bitcoin Lending

The enthusiasm from investors reflects confidence in&nbsp;Debifi&rsquo;s vision. Alexander Mann of&nbsp;Timechain
emphasized the importance of&nbsp;integrity in&nbsp;Bitcoin-backed loans, adding:

> We&nbsp;expect their implementation to&nbsp;become the standard globally.

Meanwhile, Allen Farrington from Axiom BTC Capital highlighted Debifi&rsquo;s role in&nbsp;Bitcoin&rsquo;s integration
into capital markets, stating:

> Their approach to&nbsp;scaling the overcollateralized Bitcoin-backed lending market is&nbsp;thrilling.

### Driving Innovation in&nbsp;Bitcoin Lending

[Max Keidun](https://x.com/keidunm), Debifi&rsquo;s CEO, expressed pride in&nbsp;reaching this milestone:

> Although Debifi.com is&nbsp;at&nbsp;the very beginning of&nbsp;its journey, we&nbsp;already have solid results and
> have been generating revenue since week one of&nbsp;our launch.

Debifi&rsquo;s roadmap includes a&nbsp;focus on&nbsp;launching new Bitcoin-backed credit products in&nbsp;early 2025.
These offerings, currently in&nbsp;stealth mode, are designed to&nbsp;set a&nbsp;new benchmark for security and
transparency in&nbsp;the lending market.

## Expanding Horizons with Strategic Capital

Debifi plans to&nbsp;channel the newly raised funds into several key areas:

- **Team Expansion:** Enhancing technical and business development capabilities.
- **Market Presence:** Establishing a&nbsp;footprint in&nbsp;new regions.
- **Product Innovation:** Introducing groundbreaking non-custodial, no-rehypothecation credit solutions.
- **Marketing Campaigns:** Raising awareness and driving user adoption.

### Rapid Market Growth and Adoption

Since its beta launch, Debifi has experienced exceptional growth, with loan originations doubling each quarter. The
introduction of&nbsp;the [Debifi iOS app](/app) has further accelerated user acquisition, demonstrating the growing demand
for Bitcoin-backed borrowing solutions.

### Seizing the Market Momentum

As&nbsp;global financial systems increasingly recognize Bitcoin&rsquo;s value as&nbsp;a&nbsp;&laquo;super
collateral&raquo;, Debifi is&nbsp;uniquely positioned to&nbsp;meet this demand. With Bitcoin adoption growing among
individuals and institutions alike, the platform aims to&nbsp;connect liquidity providers with Bitcoin holders globally.

## Looking Ahead: What&rsquo;s Next for Debifi?

Exciting developments are on&nbsp;the horizon as&nbsp;Debifi prepares to&nbsp;launch a&nbsp;suite of&nbsp;groundbreaking
**Bitcoin-backed credit products in&nbsp;Q1 2025**. These innovative solutions are set to&nbsp;redefine the standards
of&nbsp;non-custodial lending, further solidifying Debifi&rsquo;s leadership in&nbsp;the space.

Stay connected with&nbsp;us to&nbsp;be&nbsp;the first to&nbsp;know about these upcoming releases and more. Subscribe
to&nbsp;our channels&nbsp;on [X.com](https://x.com/debificom) and [LinkedIn](https://linkedin.com/company/debifi) for
the latest updates, insights, and exclusive announcements.

## About Debifi

Debifi is&nbsp;a&nbsp;non-custodial lending platform designed to&nbsp;unlock Bitcoin&rsquo;s potential
as&nbsp;a&nbsp;premier form of&nbsp;collateral. With secure multisig escrow technology and an&nbsp;unwavering focus
on&nbsp;transparency, Debifi provides unparalleled borrowing solutions for individuals and institutions. Founded
by&nbsp;leaders in&nbsp;the Bitcoin industry, the platform is&nbsp;setting a&nbsp;new standard for Bitcoin-first
financial services.

For media inquiries, please [contact us](mailto:sergejs.ponomarjovs@debifi.com)

Debifi Blog: Articles