Loan My Coins vs. Unchained: Detailed Comparison
A factual comparison of BTC-to-BTC lending versus multi-sig fiat-denominated Bitcoin loans.
Both services emphasize security and Bitcoin-native approaches, but differ significantly in loan structure, risk profile, and capital efficiency. This comparison helps you understand the key differences.
Quick Comparison
- Loan currency: LMC = Bitcoin (BTC), Unchained = USD
- LTV: LMC = 95%, Unchained = 50%
- Margin calls: LMC = None, Unchained = Yes
- Risk score: LMC = 10 (Low), Unchained = 29 (Low) per Zone21
- Custody: LMC = Segregated wallets, Unchained = 2-of-3 multisig (DeFi)
Key Differences
| Feature | Loan My Coins | Unchained |
|---|---|---|
| Loan Type | BTC-to-BTC | Fiat-denominated (USD) |
| Maximum LTV | 95% | 50% |
| Liquidation Threshold | None - no liquidation mechanism | 83% LTV |
| Margin Calls | None - impossible with BTC-to-BTC | Yes - triggered by price volatility |
| Fee Structure | 5% upfront (one-time fee) | 14.18% APR (ongoing interest) |
| Interest Rate | 0% (fee-based) | 14.18% fixed APR |
| Loan Currency | Bitcoin (BTC) | USD |
| Repayment Currency | Bitcoin (BTC) | USD |
| Custody Model | Segregated wallets | DeFi, 2-of-3 multisig |
| Rehypothecation | No | No |
| KYC Required | Yes (via loan provider) | Yes |
| Loan Term | 12 months (renewable up to 5 years) | 12 months |
| Price Volatility Impact | None - LTV remains constant | High - affects LTV and triggers margin calls |
| Risk Score (Zone21) | 10 (Low) | 29 (Low) |
| Best For | Long-term holders avoiding liquidation risk | Multi-sig custody preference with USD needs |
Risk scores based on Zone21.com risk framework. Data for Unchained from Zone21.com as of 2025. Always verify current terms directly with providers.
Why These Differences Matter
1. Capital Efficiency (LTV)
Loan My Coins
95% LTV - Stake 10 BTC, receive 9.5 BTC as loan. Nearly double the capital efficiency of 50% LTV options.
Unchained
50% LTV - Stake 10 BTC worth $1M, receive $500k USD. Requires locking up twice as much Bitcoin for the same liquidity.
2. Liquidation Risk
Loan My Coins
No liquidation risk - BTC-to-BTC structure makes liquidation mathematically impossible. Both sides are the same asset.
Unchained
Liquidation at 83% LTV - Bitcoin price drops can trigger margin calls and forced liquidation of collateral, despite multi-sig security.
3. Fee Structure
Loan My Coins
5% upfront fee - One-time cost. No ongoing interest. Total cost is predictable and fixed.
Unchained
14.18% APR - Ongoing annual interest. Total cost increases with loan duration and compounds over time.
4. Custody & Security
Loan My Coins
Segregated wallets with loan provider. You receive borrowed BTC upfront, reducing counterparty exposure after delivery.
Unchained
2-of-3 multisig (DeFi) - Non-custodial multisig structure provides strong security, but liquidation risk remains due to fiat-denominated loans.
Understanding the Risk Differences
Both services have low risk scores according to Zone21.com, but the risk profiles differ in important ways:
Loan My Coins
Why it's lower risk:
- BTC-to-BTC structure eliminates liquidation and margin call risk entirely
- Borrowed BTC delivered upfront reduces counterparty exposure
- No price oracle dependency or forced liquidation mechanisms
- Fixed terms in Bitcoin prevent volatility-related risks
Unchained
Risk factors:
- Multi-sig custody provides strong security (2-of-3 DeFi structure)
- Fiat-denominated loans still create margin call and liquidation risk
- Price volatility affects LTV ratios and can trigger forced sales
- 14.18% APR increases total cost over time
Key Insight
While both have low risk scores, Unchained's multi-sig security doesn't eliminate liquidation risk—that comes from the fiat-denominated loan structure. Loan My Coins achieves lower risk through BTC-to-BTC structure, which makes liquidation impossible regardless of custody model.
Risk assessments are subjective and for reference only. Not investment advice. See Zone21.com for detailed methodology.
When to Choose Each
Choose Loan My Coins If:
- You want to eliminate liquidation risk entirely
- You need maximum capital efficiency (95% LTV)
- You prefer Bitcoin-only solutions (no fiat exposure)
- You want predictable, fixed fees (5% upfront)
- You don't want to monitor prices or manage margin calls
- You're a long-term holder focused on stack preservation
Choose Unchained If:
- You specifically want multi-sig custody (2-of-3 DeFi)
- You need immediate USD liquidity
- You're comfortable managing margin call risk
- You prefer ongoing APR over upfront fees
- You actively monitor Bitcoin prices
- You value multi-sig security despite fiat loan structure
Ready to Compare Your Options?
Use our calculator to model different scenarios and see how BTC-to-BTC lending compares to Unchained's multi-sig fiat loans in your specific situation.
Important: Loan My Coins acts solely as an introducer. All loans and agreements are entered into directly with an independent loan provider. This comparison is for informational purposes only. Always do your own research and verify current terms directly with providers. Data for Unchained based on public information from Zone21.com as of 2025. Terms may change.