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Why low LTV is the safety lever
Your loan-to-value is the loan divided by your collateral's value. Because the loan is fixed and Bitcoin's price moves, a falling price pushes your LTV up toward the lender's liquidation threshold. The lower you start, the more room you have: at 25% LTV, Bitcoin can roughly halve before most lenders would liquidate; at 60%+, a modest dip can trigger a margin call. So the most important safety decision isn't even which lender — it's how little you borrow. Model your exact liquidation price with the liquidation-alert tool, and read what happens at liquidation for the full picture.
That said, lenders differ in ways that matter for conservative borrowers: a lower maximum LTV signals a more cautious lender, a higher liquidation threshold gives more breathing room, and custody determines whether your coins are safe even if you never get close to liquidation.
The safety-first picks
1.Xapo Bank — the most conservative
A fully regulated bank (Gibraltar) that approaches lending cautiously: a low ~40% maximum LTV, with a margin call around 65% and liquidation near 80%, so there's a wide cushion by design. Rate is variable (tracks rates, ~10.5%), minimum around $1,000, no origination fee. Best for borrowers who want bank-grade custody and the lowest starting leverage. Xapo review →
2.Strike — low-risk, simple terms
Bitcoin-backed loans with a 50% max LTV, an 85% liquidation threshold (a generous gap), segregated custody, and no origination fees on a clean 12-month term starting at 9.5% APR. The $10,000 minimum suits larger, deliberate borrowers. We rate it lower-risk. Strike review →
3.Ledn — transparency & proof-of-reserves
A Bitcoin-focused, lower-risk lender at 50% max LTV, ~80% liquidation, with bi-annual proof-of-reserves and a stated no-rehypothecation model. Rates around 9.25–11.5% with a ~2% admin fee and a low $1,000 minimum — accessible for smaller conservative loans. Ledn review →
4.Unchained — you hold a key
The choice if custody control is paramount: collaborative multisig means your Bitcoin can't be rehypothecated or lost in a lender failure. 50% max LTV, ~83% liquidation, ~14–16% rate, $150,000 minimum. Two cautions: it's the priciest here, and a margin call results in full-position liquidation — so a low starting LTV matters even more. Unchained review →
At a glance
| Lender | Max LTV | Liquidation | Rate | Custody | Risk |
|---|---|---|---|---|---|
| Xapo Bank | ~40% | ~80% (call ~65%) | ~10.5% var | Regulated bank | Lower |
| Strike | 50% | ~85% | from 9.5% | Segregated | Lower |
| Ledn | 50% | ~80% | 9.25–11.5% | No-rehypo*, PoR | Lower |
| Unchained | 50% | ~83% | 14–16% | Multisig (your key) | Lower |
Figures reflect each lender's published terms as of the date above and can change — confirm at the source. Full data, fees and source links are in the comparison table. *Ledn states no-rehypothecation for its standard product; confirm current custody terms.
How to borrow at a safe LTV
- Decide your comfort price. Pick a Bitcoin price you're confident it won't fall below in your loan term, and size your loan so liquidation sits below it.
- Borrow well under the max. Many cautious borrowers stay at 20–35% LTV even when 50% is allowed.
- Check the liquidation gap. A higher liquidation threshold (e.g., 85%) gives more room than a lower one.
- Prioritize custody. Segregated, non-rehypothecated, or keep-your-keys custody protects you even far from liquidation.
- Set an alert. Use the liquidation alert so you're warned before your price approaches the danger zone.
FAQ
What counts as a low-LTV loan?
Borrowing a small fraction of your collateral — e.g., 20–35% LTV. The lower the LTV, the further Bitcoin can fall before a margin call or liquidation.
Can't I just borrow low with any lender?
Yes — max LTV is a cap, not a requirement, so you can borrow conservatively anywhere. The "best" low-LTV lenders simply add safer custody, bigger liquidation buffers, and clearer terms.
Which lender has the lowest max LTV?
Among those we track, Xapo Bank is the most conservative at roughly 40% maximum, with margin call around 65%.
Does a low LTV avoid tax too?
Indirectly — a low LTV reduces the chance of liquidation, and liquidation is a taxable sale. See is a Bitcoin loan taxable?
Find your safest option
Sort every lender by max LTV, liquidation level, custody and rate — independently verified, with a source link on every row.
Open the comparison →