Question 1

Can you borrow against Bitcoin (BTC)?

Accepted Answer

Yes. Bitcoin is accepted as collateral for a crypto-backed loan, so you can pledge your BTC, borrow cash against it, and keep ownership. When you repay, your Bitcoin is returned. With Figure, BTC sits alongside Ethereum and Solana as eligible collateral.

Question 2

How much can you borrow against your Bitcoin?

Accepted Answer

With Figure, you can borrow up to 75% of your Bitcoin's value (loan-to-value), with a minimum loan of $5,000. A lower LTV means a larger cushion before a price drop puts your loan at risk, while a higher LTV means more cash in hand but less room for BTC to fall. Because the maximum is 75%, you always pledge more Bitcoin value than you borrow.

Question 3

What happens to your Bitcoin loan if the price of BTC drops?

Accepted Answer

If Bitcoin falls in value, the same loan becomes a larger share of a smaller collateral pool, so your LTV rises. If it climbs past the liquidation threshold, the lender can sell your BTC to cover the loan. This is the primary risk of borrowing against Bitcoin, which is why the size of your starting cushion matters. Figure's optional Liquidation Protection can defer price-based liquidation for the loan term in select states.

Question 4

Does a Bitcoin-backed loan require a credit check?

Accepted Answer

Your eligibility for a crypto-backed loan is based on your crypto collateral, not your traditional credit score. We will conduct a soft-credit pull to determine if you are in good standing with other lenders.

Question 5

Are Figure's Bitcoin-backed loan rates fixed or variable?

Accepted Answer

Figure's crypto-backed loan carries a fixed interest rate for the one-year term, so your rate does not change with market swings while you hold the loan. An optional Liquidation Protection feature is available in select states for an upfront, non-refundable fee of 2% of the loan amount.

Bitcoin-backed loans: How to borrow against your BTC

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Bitcoin-backed loans: How to borrow against your BTC

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