Frequently asked questions

• Submit the «Become lender» form on our website
• Receive further instructions from our team
• Create offer to lend

Offer acceptance

Select an offer and enter your loan details: amount, loan term, and payment option.

For Stablecoin and Fiat loans, provide your payment details:

• Stablecoin loans — enter the stablecoin address where you’ll receive the loan
• Fiat loans — click «Add loan transfer details» to enter your bank account information.

For Card loans: No payment details required. The prepaid card will be sent to your Debifi account email address.

Some offers require identity verification (KYC/KYB) before proceeding.

Public key provision & contract signing

Review the contract terms before proceeding. You can provide your public key or cancel the contract.

To proceed, provide your public key through the Debifi mobile app. You can use the key from:

• The app’s secure storage

• An NFC-enabled hardware wallets (COLDCARD Q, COLDCARD Mk4, or TAPSIGNER)

Next, sign the contract using your private key through the Debifi mobile app. Open the Debifi mobile app and follow the instructions.

Once the contract is signed by the lender, the borrower, Authorized Key Holder (AKH) and Debifi, the contract is secured and the Bitcoin escrow address is generated.

Collateral deposit

A unique multisig Bitcoin escrow address is generated for your contract. You have 12 hours to deposit the required Bitcoin amount (collateral + origination fee) to this escrow address. You can make multiple deposits to meet the required amount. Debifi automatically detects incoming escrow transactions. Once your deposit is confirmed (2 confirmations required), the contract moves to the Loan origination stage.

Note: Card loans do not have an origination fee.

Loan origination

The borrower’s payment details become available to the lender. The lender must complete the payment within 4 hours for stablecoin loans or 12 hours for fiat loans. After completing the payment, the lender must provide proof: a transaction link for stablecoin loans or bank transfer confirmation documents for fiat loans. All transactions must receive the required number of blockchain confirmations before they can be manually approved.

Card loans: The card is sent automatically after the collateral deposit is confirmed.

Confirm receipt of the loan or card through the Debifi mobile app.

Loan fee payment

This stage applies only to stablecoin and fiat loans.

After the loan is received, the origination fee transaction is generated and signed to be released from the escrow. Click «Make payment» and sign the release transaction through the Debifi mobile app. The transaction requires signatures from 3 out of 4 key holders to be broadcasted. The Authorized Key Holder (AKH) provides a signature only if one of the counterparties does not sign.

Once the fee payment transaction is signed by all parties and broadcasted, the contract moves to the Loan in progress stage.

Loan in progress

The contract remains in this stage until the repayment date or forced liquidation.

You can partially or fully repay the loan anytime before the repayment date. To avoid forced liquidation, keep the LTV ratio below 90%. The lender may set a stricter liquidation threshold (such as 85%, 80%, or 75%), which will be shown in the loan offer. A stricter threshold triggers liquidation sooner than the standard 90%. The current LTV ratio is always displayed in the contract.

You can balance the LTV by:

• Depositing more Bitcoin to escrow (increases collateral)

• Making a partial repayment (decreases debt amount)

Early repayment

You can partially or fully repay the loan anytime by clicking the «Make repayment» button on the web platform, or via «Repayment details» in the Debifi mobile app. Set the amount you would like to repay and provide proof of payment: transaction hash for stablecoin or card loans, or supporting documents for fiat loans. When the lender confirms repayment, the contract repayment amount and LTV ratio will be updated accordingly. In case of full repayment the contract moves to the Collateral refund stage. There is no early repayment fee.

Loan repayment

After the contract period ends, it automatically moves to the Loan repayment stage. You have 24 hours to complete the repayment. If you don’t repay within this timeframe, the lender can start a dispute, which may result in forced liquidation.

After completing the repayment, provide proof of payment: a transaction link for stablecoin or card loans, or bank transfer confirmation documents for fiat loans. The lender then has 12 hours to confirm or reject the repayment.

Once the lender confirms receipt of the funds, the contract moves to the Collateral refund stage.

Collateral refund & Completed stage

The loan has been successfully repaid.

To refund your collateral, provide your Bitcoin refund address — the address where you want to receive your Bitcoin. The collateral will be refunded as soon as all parties sign the refund transaction through the Debifi mobile app.

Once the collateral is refunded, the contract is completed.

Learn more: How to Get Started with Debifi

Debifi ensures user safety by providing a unique multisig escrow for every contract created on the Debifi platform. During the contract, Bitcoin remains locked in the multisig escrow (P2SH) address on the blockchain.

Stablecoin and fiat loans use a 3 out of 4 multisig escrow system. In order to release or refund Bitcoin from escrow, 3 out of 4 keys are needed — one belongs to the borrower, one belongs to the lender, one belongs to the Authorized Key Holder (AKH), and the other belongs to Debifi. This system protects both the borrower and the lender from unauthorized escrow transactions, since no transaction can happen without a signature from three of the four parties.

Card loans use a 2 out of 3 multisig escrow system — one key belongs to the borrower, one belongs to the lender, and the other belongs to Debifi. Bitcoin cannot be released or refunded without signatures from both users or from the user and Debifi.

Learn more: How Debifi’s Multisig works

Bitcoin private keys can be generated within the Debifi mobile app (available for iOS and Android) using your mnemonic seed phrase. Each mnemonic generates a unique key pair, consisting of a private key and a corresponding public key, which together form the basis for Bitcoin ownership and transaction authorization.

You can also use NFC-enabled hardware wallets (such as COLDCARD Q, COLDCARD Mk4, and TAPSIGNER) to securely provide keys and sign transactions. All loans above 300,000 USD require a hardware wallet as an additional security step.

In addition to your email address and PIN, 2FA requires you to enter a 6-digit code that generated in an authenticator app on your device, such as Google Authenticator or Authy. This makes it impossible to log into your account without accessing your 2FA code.

Linking your device is an additional level of security. When you create your Debifi account using the mobile app, you verify it with your email, save your 12-word mnemonic seed phrase, enable 2FA, and link your mobile device.

Your linked mobile device is used to:

• Confirm logins to your Debifi account in your browser
• Confirm actions such as receiving loans or repayments
• Sign escrow transactions

You can add multiple devices to your Debifi account. To add a new device, restore your account using your mnemonic seed phrase, verification code from your email address, and 2FA.

Whenever there is a problem during a contract, both parties are able to start a dispute if they cannot resolve the issue by themselves.

Once a dispute has been started, the support manager will review the case and provide further instructions on how to resolve it. The dispute will be resolved according to the Dispute rules by the Debifi support team.

The escrow extractor is an open-source tool that allows users to manually release funds from the multisig escrow without relying on the Debifi platform. Available on request, it enables the key holders to collaboratively create, sign, and broadcast the transaction needed to access the Bitcoin collateral.

Debifi is a non-custodial, Bitcoin-backed lending platform providing institutional-grade liquidity. You can borrow against your Bitcoin without giving up custody.

The borrower chooses and accepts a loan offer. Some offers require identity verification (KYC/KYB) before proceeding. Debifi generates a unique Bitcoin multisig escrow address with 4 keys distributed among independent counterparties — the borrower, the lender, Debifi, and the Authorized Key Holder (AKH). Stablecoin and fiat loans use 3 out of 4 multisig, while card loans use 2 out of 3 multisig.

The borrower deposits Bitcoin collateral to the multisig escrow directly from their wallet. After the deposit is confirmed, the lender transfers the loan amount to the borrower according to the contract terms.

The borrower repays the loan amount plus the interest directly to the lender. After the repayment is confirmed, Bitcoin is released back to the borrower’s wallet.

The borrower chooses and accepts a loan amount and term. Identity verification (KYC/KYB) is required before proceeding. You then deposit Bitcoin as collateral into a 2 out of 3 multisig escrow address. After the deposit is confirmed, a virtual prepaid Bitcoin-backed card is issued to the email address registered in your Debifi mobile app.

The prepaid card must be activated within 6 months or it will expire. You can repay the card loan anytime and continue using your card. The card expiration date doesn’t depend on the loan repayment date. The card can be used for purchases anywhere Visa is accepted (available for USA only).

Once the loan is repaid, the Bitcoin collateral is released to your wallet.

• Download Debifi mobile app available for iOS and Google Play Store, F-Droid, or direct .apk file
• Sign up with an email address via Debifi Mobile app
• Check our FAQs and Guides and engage in contracts right away!

KYC/KYB requirements vary depending on your lender. All offers without KYC/KYB are labeled accordingly. KYC/KYB procedure is conducted by a third-party provider such as Sumsub, or by a third-party provider utilized by the lender.

Stablecoin and fiat loans are available globally.

Card loans are currently available in the USA.

The Debifi mobile app is required to use the platform. Your private keys are stored in the app, which you use to sign transactions and confirm loan actions. The Debifi mobile app is available to download in the iOS App Store, Google Play Store, and F-Droid. You can also download the .apk file for Android directly from our website. Source code available on GitLab.

Debifi’s origination fee is 1% to 2% depending on the loan duration and loan volume. It is paid by the borrower and is locked in the Bitcoin multisig escrow address along with the collateral. The origination fee is charged separately (released from escrow) after the borrower confirms receipt of the loan payment.

Note: Card loans do not have an origination fee.

Bitcoin only.

Collateral amount = (Loan Amount + Loan Amount * Interest rate) / LTV Ratio

The value of the collateral is determined by the LTV ratio. In general, the lower the LTV, the higher the value of the collateral.

With agreement from both the borrower and the lender, loan repayment from the collateral can be done manually. Automation of the process will become available in Q1 2026.

Debifi offers stablecoin loans, fiat loans, and card loans.

Stablecoin loans: USDT Ethereum, USDT Tron, USDT Liquid, USDT Solana, USDC Ethereum, USDC Solana

Fiat loans: USD, EUR, GBP, AED, BRL, CHF

Card loans: Card issued in USD. Repayment available in USDT Ethereum, USDT Tron, USDT Liquid, USDC Ethereum.

LTV ratio = Loan Amount / Collateral amount × 100

A loan’s LTV (Loan-to-value) ratio determines how much Bitcoin collateral you need to secure a loan. In other words, the LTV ratio shows the relation between the loan amount and the collateral’s value.

Each lender sets the LTV ratio for their offer (ranging from 30% to 70%). When you accept an offer, you accept the specific LTV ratio set by that lender.

If the collateral’s value decreases, the LTV ratio increases. You’ll need to either deposit more collateral or make a partial repayment to keep the LTV ratio at the required level. If you fail to balance the LTV ratio in a timely manner, forced liquidation occurs.

The loan amount for stablecoin and card contracts is fixed in USD equivalent at contract creation.

Debifi calculates collateral, payment, and repayment values using a reference rate.

Debifi uses its own price oracle to calculate the Bitcoin and stablecoin reference rate based on data from multiple third-party providers: Binance, Bitfinex, Kraken, Coinbase, Bitstamp, Bybit, Okx, Crypto, Gemini, Bitpay, Kucoin, HTX.

Loan durations range from 1 month to 24 months.

We offer two categories:

• Short-term loans: 1 to 12 months
• Long-term loans: 13 to 24 months

The loan category determines your repayment structure. Short-term loans require a single payment at maturity, while long-term loans have a split payment schedule with two payments.

For example, with a 24-month loan, the first 12 months of interest is paid at month 12, and the remaining interest along with the principal is paid at the end of the contract.

Users can request a loan duration extension. At the moment, extensions are adjusted manually after both the borrower and the lender provide confirmation. Automated loan extensions will become available in Q1 2026.

APR stands for Annual Percentage Rate. It represents the yearly interest rate you pay for borrowing funds.

For example, if you lend or borrow 100,000 USDT at 12% APR, the interest is calculated based on the loan term:

For a 1-month loan: The interest is 1,000 USDT (1% of the loan amount). Total repayment: 101,000 USDT (100,000 USDT principal + 1,000 USDT interest).

For a 5-month loan: The interest is 5,000 USDT (5% of the loan amount). Total repayment: 105,000 USDT (100,000 USDT principal + 5,000 USDT interest).

For long-term loans, the borrower makes two payments:

• First payment: The interest accrued during the first 12 months
• Second payment: At the end of the term for the remaining interest plus principal.

Example, if you lend or borrow 100,000 USDT at 12% APR for 24 months:

After 12 months: The interest accumulated is 12,000 USDT (12% of 100,000 USDT). The borrower will repay 12,000 USDT and attach the proof of payment.

After 24 months: The borrower repays the remaining interest 12,000 USDT and the principal 100,000 USDT for a total of 112,000 USDT, attaching the proof of payment.

Yes, you can obtain more than one loan at a time.

The borrowers will be alerted about Bitcoin price decrease, and the information is also available on the contract summary page. To bring a loan back to the original Loan-to-value ratio (LTV), the borrower can:

• Deposit additional collateral
• Proceed with a full or partial repayment of the debt

Any gain in the value of collateral belongs to the borrower. The borrower only owes the loan amount, which is pre-determined and not affected by the price of Bitcoin. The feature of extracting excess collateral from the Bitcoin escrow will be available in Q1 2026.

Forced liquidation (5% fee applies) — applies if Bitcoin’s price drops and the LTV ratio reaches the liquidation threshold (typically 90%, or a custom threshold set by the lender), forced liquidation is triggered. This happens if the borrower hasn’t deposited additional collateral or made a partial repayment to maintain the required LTV ratio.

When the LTV ratio reaches the liquidation threshold — the lender, the borrower and the Authorized Key Holder will be notified that forced liquidation has started. In this case, the contract will be liquidated, and the collateral will be released to the lender. If the amount locked in the Bitcoin multisig escrow address is greater than the outstanding debt — the difference will be refunded to the borrower.

Another reason for forced liquidation (5% fee applies) — is the inability of the borrower to repay the debt. In this case, after the contract period ends, and the borrower has failed to repay the debt within 24 hours, the collateral will be liquidated in favor of the lender.

The collateral is liquidated using the Bitcoin to USD exchange rate at the moment of liquidation. Exchange rate is calculated by Debifi using its own price oracle.

A margin call occurs when the value of the collateral falls below the value that the contract requires.

The borrower will be notified about price fluctuations and a rising LTV ratio in advance via Notifications, mobile app notifications and email as follows:

• 75% LTV: 1st Margin Call (the possibility exists to increase collateral or partially repay the outstanding debt in order to keep the LTV ratio at the required level)
• 80% LTV: 2nd Margin Call (the possibility exists to increase collateral or partially repay the outstanding debt in order to keep the LTV ratio at the required level)
• 85% LTV: 3rd Margin Call (the possibility exists to increase collateral or partially repay the outstanding debt in order to keep the LTV ratio at the required level)
• 90% LTV: forced liquidation alert

After the LTV ratio reaches 90% — the contract will be transferred into the forced liquidation stage, and the collateral will be liquidated after Debifi manager review. No amendments or payments will be allowed after the contract enters the forced liquidation stage.

Lenders can also set a custom liquidation rate that may be lower than the standard 90% LTV. In such cases, the margin call will be triggered earlier, and liquidation may occur sooner if the borrower does not rebalance the LTV in time.

Until the ratio reaches 90% LTV. After the LTV ratio reaches the liquidation threshold — the contract will be transferred into the forced liquidation stage, and the collateral will be liquidated. No amendments or payments will be allowed after the contract enters the forced liquidation stage.

The origination fee is calculated from the initial loan amount and is 1% — 2% depending on the duration of the loan. Discounted fees are available for larger loans. Apply through the High-volume loans form on the website or via email at [email protected].

The loan principal and interest can be paid down at any time and without penalty or early repayment fee.

Forced liquidation fee due to LTV reaching the liquidation threshold is 5%, calculated from the outstanding debt at the time of liquidation (remaining loan amount + accrued interest).

If the borrower fails to make a loan repayment, forced liquidation fee 5% is calculated from the amount that should have been paid at that time. For example: if failed payment is a periodic interest payment, the fee is based on the interest amount due, if failed payment occurs at the end of the loan term, the fee is based on the remaining repayment amount (loan amount + remaining interest).

The main priority of Debifi is to keep your funds and data safe.

Debifi does not have access to your funds. During the contract, your Bitcoin is securely locked in a multisig escrow. For stablecoin and fiat loans, 3 out of 4 signatures are required to release the funds, while for card loans, 2 out of 3 signatures are needed. This ensures that no transaction can occur without the signatures of the required parties. Even if the platform experiences issues, the Bitcoin remains safely stored in the multisig escrow.

No, Debifi is not holding your funds. Debifi only holds one of the keys to the multisig escrow to be able to arbitrate in case of any disagreements between the lender and the borrower.

An Authorized Key Holder is a company that has been granted the authority to act as an additional key in certain situations, such as during forced liquidation or in the resolution of disputes. This means that they have the legal or contractual right to access certain assets, make decisions, or otherwise intervene in circumstances where access or control is required. Essentially, they serve as a trusted party with the power to manage or resolve specific issues as outlined in their authorization.

Our Authorized Key Holders are AnchorWatch Inc. and Hodling SA.

A PIN code is a personalized 6-digit password required for logging in Debifi mobile app. It adds an extra layer of security to ensure that only authorized users can access the app and their account information. The PIN code is also required for confirming various operations, such as payment confirmation, signing transactions, and more.

A verification code sent to your email is a security measure to ensure only authorized users can access their accounts. When you log in, we send a unique code to your registered email address. Simply enter this code on the Debifi website to complete your login process.

Two-factor authentication (2FA) is an advanced level of security for your account. For security reasons, Debifi requires you to have a 2FA enabled. In order to use it, Debifi requires you to have a device with a 2FA application installed. We advise you to use Authy or Google Authenticator.

Invalid tokens are sometimes caused by incorrect device clock settings. Your clock must show the correct local time, date and time zone to work properly. Phones must be set to use internet time to make sure the clock is synced properly. If you do not wish to sync your clock, Android and Windows phones have an option to correct for time errors inside the Authenticator app properties.

2FA can be changed in the settings of the Debifi mobile app.

A seed phrase (also called a mnemonic) is a sequence of 12 words that serves as the master key to access funds. It is essential to store your seed phrase securely and never share it with anyone. Mnemonic is shown only once during the process of a sign up and it is not possible to change it later.

A Seed passphrase functions like an extra word added to your seed phrase. Using your seed phrase alone grants access to a completely different set of keys. Passphrase protects your keys in case of theft of a seed phrase.

Bitcoin private keys are generated within the Debifi application using the user’s mnemonic seed phrase. Each mnemonic generates a unique key pair, comprising a private key and a corresponding public key, which together form the basis for Bitcoin ownership and transaction authorization. The key generation process is open source, allowing users and developers to independently verify its security and integrity.

Additionally, users can choose to generate and securely store their private keys using NFC-enabled hardware wallet devices (COLDCARD Q, COLDCARD Mk4, or TAPSIGNER).

Changing private keys is not possible. If you lose your private keys, unfortunately, you will lose access to the platform. It’s crucial to securely store and back up your private keys to prevent this situation.

The public key is a cryptographic key that pairs with the private key and is used to generate the Bitcoin escrow address of the contract. The Debifi application provides a new unique key for each contract, which is necessary for generating the Bitcoin escrow. Users can also use NFC-enabled hardware wallet (COLDCARD Q, COLDCARD Mk4, or TAPSIGNER) to generate and provide keys. The public key is provided upon request within the contract flow.

On the «Sign in» page in the app, click «I didn’t receive a code» and follow the instructions.

You can contact [email protected]

If you receive a notification that your account has been blocked, this means you have been blocked by Debifi’s administrators.

You can still access your account, but with the following limitations:

• You are unable to create or accept new offers;
• You are unable to start new contracts;
• Your offers are temporarily inactive;
• You are unable to review or apply for KYC/KYB applications;
• You can still complete ongoing contracts.

Our support team usually sends an email explaining the reason for the block. If you have not received any information about being blocked, please contact us at [email protected].

If you have broken the terms of service or any other rules associated with using the platform, we reserve the right to ban your account. This implies that you would not be able to log into your account and use any of Debifi’s services as long as your account remains in banned status. Our support team usually sends an email explaining the reason for the ban. If you have not received any information, please contact us at [email protected].

The Debifi mobile application serves as the official interface for users to access and interact with the Debifi platform. It is needed for various purposes:

1. Loan Management: Users can access a list of contracts and track their repayment schedules through the application.
2. Collateral Verification: The application allows users to securely confirm their loan agreements and collateral details, ensuring the integrity of transactions.
3. Secure Authentication: Utilizing a passwordless system, the application securely stores users’ cryptographic keys, enabling seamless and secure authentication without the need for traditional passwords.
4. Key Storage: Cryptographic keys stored within the application play a crucial role in verifying users’ identities and ensuring the security of their transactions on the Debifi platform.
5. Notifications: The Debifi app sends timely updates on repayment deadlines, loan approvals, security notifications and collateral changes, helping users stay informed and manage their finances effectively.

Overall, the Debifi mobile application provides users with a user-friendly and secure way to access financial services, manage their accounts, and conduct transactions on the Debifi platform.

The Debifi mobile app is available to download in the iOS App Store, Google Play Store, and F-Droid. You can also download the .apk file for Android directly from our website.

The key generation process is open-source, allowing users and developers to inspect and verify how multisig addresses and cryptographic keys are created, while the app’s source code is available for viewing. Source code available on GitLab.

To restore your account, start by downloading the app and entering your email address, then confirm the verification code sent to your inbox and a 2FA code from your authenticator app. Enter your 12-word seed phrase along with your passphrase, if you previously set one. Once your account is restored, simply connect your device and create a new PIN code to complete the setup.

An offer is an open proposal for a loan on the Debifi platform. A counterparty may accept your offer and create a contract with you.

The available hours determine the time period that your offer will be active and visible to other users in the offer list and/or available by the link.

You can make your offer private. This means that other users will not see it in the offer list, and it will only be available through the link. To make your offer private, check the «Private» checkbox on the offer creation or editing page.

Yes, if you want to make your offer temporarily unavailable, turn off Enable toggle on the offer page. To activate the offer, turn on the toggle.

Go to the «My Offers» page, open the offer and click «Delete».

• Active — the offer is visible to other users in the offer list and/or is available by the link.
• Inactive — the offer is not visible to other users in the offer list and is not available through the link, for example, due to available hours.
• Disabled — the offer is not visible to other users in the offer list and is not available through the link. Enable it to activate.

Enabled offers can automatically change from «Active» to «Inactive» statuses, and vice versa, in the following cases:

• Available hours. The offer will be «Active» only during the set available hours.
• Account block. Your offers become «Inactive» if your account has been blocked.

An agreement between the lender and the borrower, which starts by accepting an offer and is followed by the collateral deposit and loan transfer to the borrower (transaction ID or a bank transfer receipt is required as a confirmation). The contract moves to in progress status after the origination fee is paid. For card loans, the contract moves to in progress once the borrower confirms card receipt.

The minimum loan amount is 500 USD for card loans and 5,000 USD for stablecoin and fiat loans.

There are no limits on the loan amount.

After the contract has been created, the applicable origination fee from 1% to 2%, depending on the contract’s period, will be taken from the amount the borrower locked in the Bitcoin multisig escrow address.

The Platform charges origination fees in Bitcoin only.

For example, the Loan amount is 100,000 USDT (price of 1 BTC is also 100,000 USDT), LTV Ratio is 50%, APR is 10%. Total amount to repay is 110,000 USDT.

Origination fee calculation:
Origination fee (transaction fee included) is 1.5% of the Repayment amount in BTC + the fixed transaction fee (txfee) of 0.0001 BTC.

In this case:

• Origination fee amount: 1.5% of Repayment amount 110,000 USDT = 1,650 USDT = 0.0165 BTC
• Total origination fee including transaction fee: 0.0165 BTC + 0.0001 BTC = 0.0166 BTC

Amount to be Deposited calculation:
Formula: (Loan Amount + Loan Amount × APR) / LTV Ratio + Origination fee (transaction fee included)

In this case:

• Loan with interest in USDT: 100,000 USDT + (100,000 USDT × 10%) = 110,000 USDT
• Collateral needed based on LTV: 110,000 USDT / 50% = 220,000 USDT = 2.2 BTC
• Total amount to be deposited: 2.2 BTC + 0.0166 BTC = 2.2166 BTC

Amount to be Repaid calculation:

Formula: Loan amount + Loan amount × APR

In this case:

• Total repayment amount: 100,000 USDT + (100,000 USDT × 10%) = 110,000 USDT

The borrower covers both Bitcoin transaction fees to the escrow and from the escrow. The amount of the fee for the escrow deposing transaction is determined by the borrower and should reflect the current state of the mempool, taking into account that the transaction is expected to receive 2 confirmation within the depositing timeframe.

The escrow is a P2SH Bitcoin multisig address, which requires 3 out of 4 keys to sign the transaction. Each time a contract is created between two parties, the Platform generates a unique multisig escrow Bitcoin address. The borrower then deposits Bitcoin from their wallet to this escrow, and while the Bitcoin is locked in the escrow, the lender sends the loan amount to the borrower. After the contract period ends, the borrower receives the Bitcoin collateral back in their wallet.
A 2 out of 3 Bitcoin multisig escrow is used for card loans, meaning any two of the three parties — the borrower, lender, and Debifi — must sign to move the funds.

Depositing transaction requires 2 confirmation. The contract will be transferred into the Payment stage only after the collateral has been deposited to the escrow and the transaction has received 2 confirmation.

Yes, Debifi supports SegWit in the following scope:

• Native Bech32 SegWit addresses: deposit funds directly to escrow from Bech32 addresses, and receive funds directly from escrow to Bech32 addresses
• P2SH-P2WSH SegWit multisig escrow addresses: every multisig address on the Debifi Platform is generated in SegWit format.

• Offer acceptance — the initial stage, the offer has been accepted by the counterparty.
• Public key provision & contract signing — the stage involves the provision of public keys and the signing of the contract.
• Collateral Deposit — the borrower is in the process of depositing collateral to the escrow.
• Loan origination — the collateral has been deposited to the escrow; the lender is transferring the loan amount to the borrower.
• Loan fee payment — the borrower is providing payment for the loan origination fee.
• Loan in progress — the collateral is in the escrow, and the loan amount has been transferred to the borrower’s account. The contract remains at this stage until the end of the loan term or early repayment.
• Loan repayment — the borrower provided a repayment. Collateral remains locked in escrow.
• Collateral refund & Completed — the lender confirmed loan receipt including interest accrued for the entire period, and the collateral have been refunded to the borrower. The contract is completed.
• Liquidation review — the contract is being assessed by the administrators.
• Contract liquidation in progress — the deposit is being liquidated to settle outstanding obligations.
• Disputed — one of the counterparties started a Dispute because of problems or miscommunication.

Timeouts are the same for stablecoin and fiat loans unless otherwise noted.

• Acceptance timeout () — time limit for the contract to be signed. When the timer expires, the lender and the borrower can cancel the contract.

• Depositing timeout () — time limit for the contract amount to be deposited. When the timer expires, the lender can cancel the contract.

• Payment timeout () — time limit for the Payment to be made. When the timer expires, the lender and the borrower can start the dispute.

• Payment confirmation timeout () — time limit for the Payment to be confirmed. When the timer expires, the lender and the borrower can start the dispute.

• Repayment timeout () — time limit for the Repayment to be made. When the timer expires, the lender and the borrower can start the Dispute.

You can only cancel a contract at the following stages:

• Public key provision & contract signing — both — the lender and borrower — can cancel the contract after the payment window expires.
• Collateral Deposit — the borrower can cancel the contract at any time, the lender can cancel after the timeout expires.

If a contract was canceled before the Bitcoin was deposited to the escrow address, nothing happens — both parties may continue using the Platform, the same as prior to beginning of the contract.

If a contract is canceled in the «Collateral Deposit» stage, and the Bitcoin has already been deposited to the escrow address or was deposited after the contract was canceled, the borrower makes the refund directly to their Bitcoin address, which they specify during the refund process. Refund transaction fees for delivering the Bitcoin to the borrower’s address are deducted from the amount locked in the escrow.

Yes, you can deposit funds to the escrow in multiple transactions with different amounts and from different wallets.

The Bitcoin address can be changed directly before the refund/release.