Bitcoin Loan Comparison

Figure vs. Lava

Figure charges 9.99%–12.62% APR with a 1% origination fee using MPC custody (segregated). 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 — Figure: 2026-07-14; Lava: 2026-08-28.

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

For the standardized $250,000, 50% LTV, 12-month scenario, Figure is 9.99% APR and Lava is 6.5% APR.

Figure charges a 1% origination fee capitalized into the loan balance, where it accrues interest, 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 — fees that raise the effective cost above the headline rate from the day you borrow.

On a $250,000 loan held for 12 months, Lava saves $5,937 in total first-year cost (interest plus applicable fees or charges).

Figure vs. Lava: Feature-by-Feature Comparison

Figure

Lava

Interest Rate (APR)

9.99%

6.5%Lava

Pricing Basis

Starting LTV

Loan size

Fees / Charges

1% origination feeFigure

2% annual capital charge

Max Starting LTV

75%Figure

60%

Margin Call Threshold

70% LTVFigure

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

Liquidation Threshold

85% LTV

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

Margin Call Window

24 hoursFigure

No fixed window published; warnings/notifications apply

Custody Model

MPC custody (segregated)

Distributed-key custody (institutional custodians)

Rehypothecation

Interest Payment

Monthly

Capitalized

Minimum Loan

$5,000

$100Lava

Cost on a $250,000 Loan: Figure 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. Figure pricing varies by LTV; Lava pricing varies by loan size. Actual offers can differ when those inputs change.

Loan Size	Figure APR	Lava APR	Figure Total Year-1 Cost	Lava Total Year-1 Cost	Savings
$250,000	9.99%	6.5%	$27,725	$21,788	$5,937 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. Figure: 1% origination fee. Lava: 2% annual capital charge. Terms checked individually — Figure: 2026-07-14; Lava: 2026-08-28.

Custody and Collateral Security

Both Figure and Lava use similar custody approaches: MPC custody (segregated) and distributed-key custody (institutional custodians) respectively. Figure uses MPC custody (segregated). 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.

Figure: High (Custodial)

•MPC custody (segregated)
•Rehypothecation: No
•Monthly interest payments
•Figure Markets.

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: Figure vs. Lava

Figure triggers margin calls at 70% LTV and liquidates at 85% 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). Figure 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	Figure	Lava
Max Starting LTV	75%	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	85% 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. Figure: 10.0 percentage point modeled buffer between maximum starting LTV (75%) and liquidation (85% 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: Figure or Lava?

Choosing between Figure and Lava requires evaluating total cost, custody risk, and which platform aligns with your borrowing profile. Figure uses MPC custody (segregated) with 9.99%–12.62% 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 $27,725 at Figure, a difference of $5,937. Part of Figure's higher cost comes from its 1% origination fee, which adds $2,500 on this loan size.

Both platforms use similar custody approaches. Figure operates via MPC custody (segregated), and Lava uses distributed-key custody (institutional custodians). Neither platform rehypothecates borrower collateral.

Figure 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: Figure: Figure Markets. APR 9. 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 Figure 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, Figure costs $27,725 (9.99% APR) while Lava costs $21,788 (6.5% APR). That is a $5,937 difference in the first year.

How does Figure's custody model compare to Lava?

Figure uses MPC custody (segregated). Lava uses distributed-key custody (institutional custodians). Both platforms present similar custody risk profiles.

What is the minimum loan amount at Figure vs Lava?

Figure'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 Figure or Lava?

Figure issues a margin call at 70% LTV with a 24-hour response window and liquidates at 85% 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 35 points at Figure and 35 points at Lava.

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

It depends on your priorities. Figure (9.99%–12.62% APR, MPC custody (segregated), min $5,000) is better for borrowers who value MPC custody (segregated) 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

See loan scenarios

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