Scoring Intelligence7 min read

BTC Collateral Lending — How It Works

ACI scores BTC lending providers on transparency, collateral control, jurisdiction, structural risk, and track record — with custody model carrying the highest weight.

BTC Collateral Lending providers allow you to borrow against your Bitcoin without selling it. The key risk metrics are: Loan-to-Value (LTV) — the ratio of your loan to your collateral value. Default LTV is 50%. Liquidation LTV is 85%. The Scenario Risk Index (SRI) measures liquidation proximity on a 0-100 scale. Providers are scored on five criteria: transparency (20%), collateral control (35%), jurisdiction (15%), structural risk (25%), and track record (5%). Platforms that survived the 2022 crypto collapse score significantly higher than those that failed.

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Treasury Preferred Shares — BTC-Backed Preferred Shares Explained

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