Bitcoin Loan Comparison

Arch vs. Lava

Arch charges 7.25%–10.49% APR with a 0.25%–1.49% origination fee using custodial (Anchorage, qualified custodian). Lava charges 6.5%–7.5% APR with a 2% annual capital charge using distributed-key custody (institutional custodians). See the full breakdown of rates, thresholds, and custody risk below.

Terms checked individually — Arch: 2026-09-29; Lava: 2026-08-28.

How do Arch and Lava compare for Bitcoin-backed loans?

For the standardized $250,000, 50% LTV, 12-month scenario, Arch is 9.99% APR and Lava is 6.5% APR. Arch: Monthly-pay option; APR includes the size-based origination fee.

Arch's published APR already includes 1.49% origination fee, and Lava charges a 2% annual fee (its “capital charge”) on the year's peak outstanding balance that recurs every year the line stays open.

On a $250,000 loan held for 12 months, Lava saves $3,187 in total first-year cost (interest plus applicable fees or charges).

Arch vs. Lava: Feature-by-Feature Comparison

Arch

Lava

Interest Rate (APR)

9.99%

6.5%Lava

Pricing Basis

Loan size and payment schedule

Loan size

Fees / Charges

1.49% origination feeArch

2% annual capital charge

Max Starting LTV

60%

Margin Call Threshold

70% LTVArch

No published fixed threshold — warnings/notifications and Liquidation Protection are account-specific

Liquidation Threshold

80% LTV

Account-specific (model estimate: historically published 85% LTV)

Margin Call Window

24 hoursArch

No fixed window published; warnings/notifications apply

Custody Model

Custodial (Anchorage, qualified custodian)

Distributed-key custody (institutional custodians)

Rehypothecation

Interest Payment

Monthly

Capitalized

Minimum Loan

$5,000

$100Lava

Cost on a $250,000 Loan: Arch vs. Lava

To keep the comparison clean, both lenders are modeled at $250,000 principal, 50% starting LTV, and a 12-month term, using monthly-pay pricing where available. Arch pricing varies by loan size and payment schedule; Lava pricing varies by loan size. Actual offers can differ when those inputs change.

Loan Size	Arch APR	Lava APR	Arch Total Year-1 Cost	Lava Total Year-1 Cost	Savings
$250,000	9.99%	6.5%	$24,975	$21,788	$3,187 with Lava

Assumptions: $250,000 principal, 50% starting LTV, 12-month term, and monthly-pay pricing where offered. Total year-1 cost includes annualized interest and fees, but does not add a fee again when the lender's published APR already includes it. Arch: 1.49% origination fee — already included in APR. Lava: 2% annual capital charge. Terms checked individually — Arch: 2026-09-29; Lava: 2026-08-28.

Custody and Collateral Security

Both Arch and Lava use similar custody approaches: custodial (Anchorage, qualified custodian) and distributed-key custody (institutional custodians) respectively. Arch uses custodial (Anchorage, qualified custodian). Your Bitcoin depends on the security and solvency of that custody arrangement and could be at risk in the event of a hack, insolvency, or regulatory action. Lava uses distributed-key custody (institutional custodians). Your Bitcoin depends on the security and solvency of that custody arrangement and could be at risk in the event of a hack, insolvency, or regulatory action.

Arch: High (Custodial)

•Custodial (Anchorage, qualified custodian)
•Rehypothecation: No
•Monthly interest payments
•APR and origination fee both vary by loan size; deferred-interest APR is 0.

Lava: High (Custodial)

•Distributed-key custody (institutional custodians)
•Rehypothecation: No
•Interest capitalized (compounding)
•The headline rate excludes Lava's 2% annual capital charge, applied to the year's largest outstanding balance — and unlike a one-time origination fee, it recurs every year the line stays open.

Margin Call and Liquidation: Arch vs. Lava

Arch triggers margin calls at 70% LTV and liquidates at 80% LTV. Lava: No published fixed threshold — warnings/notifications and Liquidation Protection are account-specific. Positions liquidate at Account-specific (model estimate: historically published 85% LTV). Arch gives borrowers 24 hours to respond to a margin call. Lava has no mandatory margin-call step; no published fixed threshold — warnings/notifications and liquidation protection are account-specific.

Threshold	Arch	Lava
Max Starting LTV	60%	60%
Margin Call	70% LTV	No published fixed threshold — warnings/notifications and Liquidation Protection are account-specific
Margin Call Window	24 hours	No fixed window published; warnings/notifications apply
Liquidation	80% LTV	Account-specific (model estimate: historically published 85% LTV)

Safety Buffer at Each Lender's Maximum Starting LTV

This comparison uses each lender's own maximum starting LTV, not a common 50% starting position. Arch: 20.0 percentage point modeled buffer between maximum starting LTV (60%) and liquidation (80% LTV). Lava: 25.0 percentage point modeled buffer between maximum starting LTV (60%) and liquidation (Account-specific (model estimate: historically published 85% LTV)). Lava provides a wider safety margin.

Which is better: Arch or Lava?

Choosing between Arch and Lava requires evaluating total cost, custody risk, and which platform aligns with your borrowing profile. Arch uses custodial (Anchorage, qualified custodian) with 7.25%–10.49% APR, while Lava uses distributed-key custody (institutional custodians) with 6.5%–7.5% APR.

On the standardized $250,000, 50% LTV, 12-month scenario, Lava costs $21,788 in the first year versus $24,975 at Arch, a difference of $3,187.

Both platforms use similar custody approaches. Arch operates via custodial (Anchorage, qualified custodian), and Lava uses distributed-key custody (institutional custodians). Neither platform rehypothecates borrower collateral.

Arch is the better fit for borrowers who need smaller loans or instant access. Lava is the better fit for borrowers who need smaller loans or more flexible access.

Key details to be aware of: Arch: APR and origination fee both vary by loan size; deferred-interest APR is 0.50 percentage points higher than monthly-pay APR through $5M. Lava: The headline rate excludes Lava's 2% annual capital charge, applied to the year's largest outstanding balance — and unlike a one-time origination fee, it recurs every year the line stays open. Interest compounds daily into the balance; the current-year capital charge does not itself accrue interest.

Frequently Asked Questions

Is Arch or Lava cheaper for a $250,000 Bitcoin-backed loan?

Lava is cheaper under the stated assumptions. On a $250,000 loan at 50% LTV held for 12 months, Arch costs $24,975 (9.99% APR) while Lava costs $21,788 (6.5% APR). That is a $3,187 difference in the first year.

How does Arch's custody model compare to Lava?

Arch uses custodial (Anchorage, qualified custodian). Lava uses distributed-key custody (institutional custodians). Both platforms present similar custody risk profiles.

What is the minimum loan amount at Arch vs Lava?

Arch's minimum loan is $5,000. Lava's minimum is $100. Lava is more accessible for smaller borrowers.

What happens if Bitcoin drops while I have a loan with Arch or Lava?

Arch issues a margin call at 70% LTV with a 24-hour response window and liquidates at 80% LTV. Lava publishes multiple warnings/notifications, but its liquidation and Liquidation Protection thresholds are account-specific; this comparison models liquidation using the historically published 85% LTV estimate. For a common 50% starting LTV (rather than each lender's maximum), the modeled buffers are 30 points at Arch and 35 points at Lava.

Should I use Arch or Lava for a Bitcoin-backed loan?

It depends on your priorities. Arch (7.25%–10.49% APR, custodial (Anchorage, qualified custodian), min $5,000) is better for borrowers who value custodial (Anchorage, qualified custodian) and need smaller loan access. Lava (6.5%–7.5% APR, distributed-key custody (institutional custodians), min $100) is better for borrowers who value distributed-key custody (institutional custodians) and need smaller loan access. Use the rate table and cost comparison above to model your specific scenario.

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Understand the key terms

Rehypothecation Discreet Log Contracts Custodial vs. Non-Custodial LTV Ratio Margin Call Counterparty Risk

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