Bitcoin Loans Without Margin Calls
No margin calls. No liquidations. No forced sales.
If you've been burned by margin calls or watched your collateral get liquidated during Bitcoin price volatility, there's a better way. Loan My Coins introduces BTC-to-BTC lending that eliminates margin call risk entirely. See how BTC-to-BTC lending works.
In Short
- Zero margin calls: BTC-denominated loans mean price volatility never triggers liquidation requirements.
- No forced sales: Your loan terms are fixed in Bitcoin, not fiat currency. Market swings don't affect your collateral.
- Stable terms: Repay the same amount of Bitcoin you borrowed, regardless of USD price changes.
- 95% LTV: Access up to 95% of your Bitcoin's value with terms that won't change during market volatility.
Why Margin Calls Happen (And How to Avoid Them)
Traditional Bitcoin-backed loans create margin call risk because they mix assets:
Fiat-Denominated Loans
The Setup: You stake Bitcoin as collateral but receive USD (or other fiat). You must repay in fiat, but your collateral is Bitcoin.
The Risk: When Bitcoin's USD price drops, the value of your collateral decreases, but your loan amount stays the same. This creates a margin call.
What Happens in a Margin Call
Price Drops: Bitcoin falls 30%, your collateral value drops, but you still owe the same USD amount.
Lender Demands: You must either add more collateral or repay part of the loan to restore the loan-to-value ratio.
Liquidation: If you can't meet the margin call, the lender sells your Bitcoin to cover the loan, often at the worst possible time.
Real-World Example: Stake 10 BTC ($1M) at $100k/BTC. Receive $500k loan (50% LTV). Bitcoin drops to $70k/BTC. Your collateral is now worth $700k, but you still owe $500k. LTV is now 71%—above the 80% liquidation threshold. Margin call issued. If Bitcoin continues falling, liquidation becomes likely.
BTC-to-BTC: No Margin Calls Possible
Bitcoin-to-Bitcoin lending eliminates margin call risk because both the collateral and the loan are denominated in the same asset:
Traditional Fiat Loans
- Collateral: Bitcoin (BTC)
- Loan: USD or fiat currency
- Problem: Asset mismatch creates margin call risk
- When BTC price drops: LTV ratio worsens, margin call triggered
- Result: Forced liquidation or additional collateral required
BTC-to-BTC Loans
- Collateral: Bitcoin (BTC)
- Loan: Bitcoin (BTC)
- Advantage: Same asset, no mismatch
- When BTC price changes: LTV ratio stays constant
- Result: No margin calls, no forced liquidations
Example: Price Volatility Doesn't Matter
Stake 10 BTC: Receive 9.5 BTC loan (95% LTV, 5% fee).
If Bitcoin doubles: You still repay 10 BTC. Your staked BTC appreciated, but your loan amount in BTC stays the same.
If Bitcoin halves: You still repay 10 BTC. No margin call, no liquidation risk. Your loan terms remain stable.
Key Point: Since both sides are Bitcoin, price changes cancel out. The LTV ratio never changes based on USD price movements.
The Cost of Margin Calls
Forced Sales at Worst Times
Margin calls typically happen during market downturns, forcing you to sell Bitcoin when prices are low. This locks in losses and prevents recovery. Learn how BTC-to-BTC eliminates liquidation risk.
Uncertainty and Stress
Not knowing if a price drop will trigger liquidation creates constant anxiety. You can't plan confidently with margin call risk hanging over your position.
Additional Collateral Demands
When margin calls hit, you must either add more Bitcoin (at already-depressed prices) or repay part of the loan, often when you least can afford it.
Liquidation Penalties
If liquidation occurs, you typically lose more than just the loan amount—liquidation fees, slippage, and selling at market lows compound the damage. See how to access liquidity without selling.
How We Compare
Most Bitcoin loan providers offer fiat-denominated loans with margin call risk. Here's how BTC-to-BTC lending differs:
| Feature | Traditional Fiat Loans | Loan My Coins (BTC-to-BTC) |
|---|---|---|
| Margin Calls | Yes - triggered by price volatility | None - impossible with BTC-to-BTC |
| Liquidation Risk | Yes - forced sales during downturns | None - terms fixed in BTC |
| LTV Ratio Stability | Changes with Bitcoin price | Constant - same asset on both sides |
| Repayment Amount | Fixed in fiat (fluctuates in BTC terms) | Fixed in BTC - predictable |
See how BTC-to-BTC lending compares to traditional options in your specific situation.
Frequently Asked Questions
How does BTC-to-BTC lending work without margin calls?
BTC-to-BTC loans eliminate margin calls because both collateral and loan are Bitcoin. When Bitcoin's price changes, both sides move together—the loan-to-value (LTV) ratio stays constant. Since there's no asset mismatch, margin calls are mathematically impossible. Learn how the structure works.
What happens if Bitcoin price drops significantly?
With BTC-to-BTC lending, Bitcoin price movements don't affect your loan terms. You still repay the same amount of Bitcoin you borrowed, regardless of USD price changes. If Bitcoin halves, your collateral halves in USD value, but your loan amount in Bitcoin also stays the same—the LTV ratio remains constant. No margin calls or liquidations occur.
Is this safer than traditional Bitcoin loans?
Yes. Traditional fiat-denominated Bitcoin loans create margin call and liquidation risk because of asset mismatch. BTC-to-BTC loans eliminate these risks entirely. According to Zone21 risk assessments, BTC-to-BTC loans score 10 (Low risk) compared to 29-66 (Medium to High) for fiat loans. See detailed risk comparison.
Do I need to monitor Bitcoin prices with BTC-to-BTC loans?
No. Unlike fiat-denominated loans that require price monitoring to avoid margin calls, BTC-to-BTC loans don't require any price monitoring. Your loan terms are fixed in Bitcoin, so price volatility doesn't affect your loan. You can set it and forget it for the 12-month term.
Can margin calls happen with BTC-to-BTC loans?
No. Margin calls are impossible with BTC-to-BTC loans because both collateral and loan are the same asset. There's no mechanism that can trigger a margin call since the LTV ratio remains constant regardless of Bitcoin price movements. Learn about liquidation protection.
Want to see how this would work for you?
Model your scenario using the calculator, or review how the structure works before deciding if it's appropriate.
Important: Loan My Coins acts solely as an introducer. All loans and agreements are entered into directly with an independent loan provider. We do not provide financial advice. Always do your own research.