English (en)

[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
![Step 2](https://zr5pqljgeynt.compat.objectstorage.eu-zurich-1.oraclecloud.com/blog-production-mainnet/step2_7887fe6916.jpg)

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
![Step 3](https://zr5pqljgeynt.compat.objectstorage.eu-zurich-1.oraclecloud.com/blog-production-mainnet/step3_421191acec.jpg)

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
![Step 5 ](https://zr5pqljgeynt.compat.objectstorage.eu-zurich-1.oraclecloud.com/blog-production-mainnet/step5_da752c65c5.jpeg)

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
![Step 6 ](https://zr5pqljgeynt.compat.objectstorage.eu-zurich-1.oraclecloud.com/blog-production-mainnet/step6_f67afb62af.jpg)
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.


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 How to Get Started with Debifi

Bitcoin is more than just a digital asset — for many, it’s a long-term investment. But what if you need money right now? For a trip, a new laptop because your old one died, the newly launched iPhone or everyday expenses? Going to a bank is painful and long waiting process. Borrow from other people could lead to complicated situations at some point. Selling BTC is not always the best choice, especially when the market may be on the rise.

That’s where the [Bitcoin Card](/bitcoin-card) powered by Debifi comes in. It’s a **digital prepaid Visa card** backed by your Bitcoin as collateral. You don’t sell your BTC — you simply use its value to unlock a spending limit.

Let’s see real-life examples of how the card works and how it helps you stay invested while still covering your needs.

## Book your flights and hotels without selling BTC

You’ve found great flight deals or the perfect hotel — but the crypto market looks promising: Selling Bitcoin right now feels like missing out.

With the Bitcoin backed digital prepaid Visa card, you can avoid it. It lets you keep your Bitcoin and still book your trip. Here is how it works:

1. Use your BTC as collateral to receive a spending limit on the card.
2. Pay for flights, hotels, rentals, or tours directly with the card.
3. Repay the balance later when it’s convenient for you.

Your Bitcoin stays under your control, while sticking to your travel plans. You decide when and where to go without selling your crypto.

## Buy tech today and keep your BTC for the future
Need a new laptop, smartphone, monitor, or home office setup?
Large purchases often come at the wrong time — especially when BTC might go up. And you don’t want to miss the next potential move upward.

Debifi offers an easy possibility to buy the things at the moment you need.

The digital prepaid visa card powered by Debifi makes this simple: You just use your BTC as collateral and get an instant spending limit on the card for any tech purchase you want. You pay in-store or online with the card. All this time your Bitcoin stays safely locked in a non-custodial, 2-of-3-multisig escrow — you keep ownership, and Debifi provides the spending limit.

You get the tech you need now without touching your investment.
Moreover, you can repay your loan whenever you want without any fines.

## Spend every day with no need to cash out
Life is full of small but constant expenses: groceries, gas, subscriptions, online shopping, household items, medicines.

You _could_ convert some Bitcoin every time you need cash — but that means selling your assets piece by piece and losing future potential gains.

The [Bitcoin card](/bitcoin-card) is a digital prepaid Visa card. You can add it to your “digital” wallet on the phone and use it to pay for your daily expenses anywhere Visa is accepted.
The card works perfectly for daily use, so you can:
- Pay in grocery stores and retail shops
- Grab coffee on the go
- Easily pay in cafes and restaurants
- Pay for monthly subscriptions (like Netflix, Spotify, etc.)
- Order from Amazon
- Pay for the gym membership etc.

There’s no need to sell or convert your BTC.
 Just use your card like any other payment card — but backed by your BTC.

<hr>

**The most important thing about the digital prepaid Visa card is that you don’t need to sell Bitcoin when you can use it as collateral.**

This is the main advantage of using a digital prepaid Visa card by Debifi: You keep ownership of your Bitcoin. You simply use its value to cover your everyday expenses.

Debifi’s non-custodial, multisig-secured model keeps your BTC under your control while giving you instant access to funds. Check the details here: [Card offers](/offers?payment_method=product)

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How to use the Bitcoin card by Debifi in daily life

To ensure your Bitcoin-backed loan stays secure and you avoid the process of forced liquidation, it’s important to understand what does forced liquidation mean, how does liquidation work and to know the steps you can take to prevent it. Here's what you need to know about forced liquidation and how to protect yourself.

## What is forced liquidation?

Forced liquidation happens when your **LTV ratio** (Loan-to-Value ratio) **rises above 90%** and you don’t take action to fix it. This usually occurs when Bitcoin’s price drops, your collateral loses value, and your loan becomes too risky. The Borrower should either increase the amount of collateral or partially repay the debt to keep the LTV ratio at an appropriate level, between 30 and 70%.

Before a forced liquidation starts, the Borrower will get **three margin call notifications**. What is a margin call? A margin call means a note of warning that your collateral value has fallen below the required level according to your contract.

If you don’t respond and your LTV goes higher than 90%, Debifi notifies both the Borrower and the Lender as well as the Authorized Key Holder that the forced liquidation process has started. You can’t take any actions if the forced liquidation process has started.

The contract is then closed, and the collateral is transferred to the Lender.
 
Forced liquidation can also occur **if the Borrower doesn’t repay the loan**. After the contract ends, the Borrower has 24 hours to repay the debt. If they don’t do it, forced liquidation begins and the collateral will be liquidated in favor of the Lender.
The collateral will be liquidated based on the exchange rate of bitcoin to USD at the time of liquidation.
 
## Important things to know about forced liquidation

_**For Lenders:**_

·        Even in forced liquidation, your interest is safe. There is no risk of losing your interest — all loans on Debifi are over-collateralized.

·        After liquidation of the contract, you receive the loan amount + interest in bitcoin. Since it is a volatile asset, lenders choose to monitor bitcoin price closely and hedge their risks by converting the bitcoin into fiat or stablecoins in a timely manner.
 
_**For Borrowers:**_

·        Be aware that forced liquidation includes a 5% liquidation fee. It is calculated from the outstanding debt at the time of liquidation (remaining loan amount + accrued interest).

·        If the collateral amount in the multisig escrow exceeds your outstanding debt, the difference is refunded to you.
 
<h2>How to avoid forced liquidation – our tips</h2>

**1. Choose a low LTV ratio**

Your LTV ratio shows how your loan compares to your collateral value. If BTC price drops then your LTV rises and therefore you may need to add collateral.

At the moment of signing the contract take into consideration:

Higher LTV = higher risk of contract liquidation.

Lower LTV = more protection but also more collateral.
 
**2. Add extra BTC to escrow**

Even if your loan starts at, say, 70% LTV, you can always deposit more collateral to protect yourself.

Adding more BTC to the multisig escrow gives you more time to react if the Bitcoin price goes down.
 
**3. Monitor the Bitcoin price**

If Bitcoin starts falling, log in to the Debifi account and check the current LTV of your contract.

A quick adjustment can fully prevent liquidation.
 
**4. Use a valid email address**

Debifi sends all notifications, including margin calls, to your email.

Make sure you have access to it. Always use a valid email to create an account on Debifi.
 
**5. Repay the debt on time (or earlier)**

Don’t wait until the last minute. You can close your loan early anytime without extra fees.
 
**6. Act immediately when you receive a margin call**

A Margin call means that your LTV ratio is too high.

Fix it by:

·        adding more collateral

·        partially repaying your loan.

Forced Liquidation is easy to avoid when you stay ahead of your LTV ratio.

Monitor your loan, react to notifications, and let your BTC keep working for you — without selling it.



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How to avoid Forced Liquidation

BTC Sessions  released a detailed tutorial showing exactly how to use [Debifi ](https://debifi.com/)to get a Bitcoin-backed [loan](https://debifi.com/offers) He walks through every step, from setting up your collateral to repaying the loan and getting your bitcoin back.

The video demonstrates how Debifi lets you borrow against your bitcoin without handing over custody. Every loan is secured by a 3-of-4 multisignature escrow, which means your BTC stays locked on-chain where you can verify it throughout the entire loan period.

## What Makes Debifi Different

Most traditional lending platforms re-lend your collateral or hide it behind unclear custody arrangements. Debifi does the opposite:

* **Non-custodial by design.** Your bitcoin stays in a verifiable multisig where you hold one of the keys.
* **No rehypothecation.** Your collateral cannot be re-used or lent out to anyone else.
* **On-chain transparency.** Every contract, deposit, and repayment is visible and verifiable on the blockchain.
* **Institutional liquidity.** Loans are matched with professional lenders using fully collateralized bitcoin escrows.

## Inside the Tutorial

BTC Sessions covers the complete borrowing process from start to finish:

1. Setting up a Debifi account and securing it with PIN and 2FA
2. Creating a loan contract and verifying the escrow on-chain
3. Receiving USD-denominated stablecoins (Liquid USDT)
4. Making repayments and automatically reclaiming your bitcoin collateral

**"The way Debifi's multisig is structured aligns incentives perfectly. Neither party wants the collateral moved. It's designed for transparency and peace of mind."** - BTC Sessions

Watch the full tutorial below to see how to get, repay, and reclaim your bitcoin-backed loan with Debifi, step by step.
[![HOW TO GET A BITCOIN-BACKED LOAN WITH DEBIFI: FULL WALKTHROUGH BY BTC SESSIONS](https://zr5pqljgeynt.compat.objectstorage.eu-zurich-1.oraclecloud.com/blog-production-mainnet/Image_22_10_2025_at_13_12_a8d41dc303.jpeg)](https://www.youtube.com/watch?v=KIBBtH-y-lg)


Debifi Blog: Guides