Figure charges 8.91%–11.5% APR with a 1% origination fee using custodial (figure markets mpc wallet, segregated). Morpho charges ~4.3% (variable) APR with $0 origination fees using smart contract (wrapped btc via custodial bridge). See the full breakdown of rates, thresholds, and custody risk below.
Rates verified 2026-06-09
Morpho advertises a lower headline rate at ~4.3% (variable) compared to Figure's 8.91%–11.5%. On a $1M loan held for 12 months, Morpho saves $56,100 in total first-year cost (interest plus origination fees). From a custody perspective, Morpho presents lower counterparty risk with its smart contract (wrapped btc via custodial bridge) model.
Figure structures rates by LTV ratio rather than loan amount, so the rate depends on how much collateral you pledge relative to the loan. Total year-1 cost includes both annualized interest and any origination fees charged upfront.
| Loan Size | Figure APR | Morpho APR | Figure Total Year-1 Cost | Morpho Total Year-1 Cost | Savings |
|---|---|---|---|---|---|
| $100,000 | 8.91% | 4.3% | $9,910 | $4,300 | $5,610 with Morpho |
| $250,000 | 8.91% | 4.3% | $24,775 | $10,750 | $14,025 with Morpho |
| $500,000 | 8.91% | 4.3% | $49,550 | $21,500 | $28,050 with Morpho |
| $1M | 8.91% | 4.3% | $99,100 | $43,000 | $56,100 with Morpho |
| $5M | 8.91% | 4.3% | $495,500 | $215,000 | $280,500 with Morpho |
Total year-1 cost includes annualized interest plus origination fees. Figure: 1% origination fee. Morpho rates are variable; the table uses a representative recent rate. Rates sourced from each lender's public rate pages as of 2026-06-09.
Figure and Morpho take fundamentally different approaches to collateral custody. Figure uses Custodial (Figure Markets MPC wallet, segregated). Your Bitcoin is held by Figure and could be at risk in the event of a hack, insolvency, or regulatory action. Morpho holds collateral in audited smart contracts rather than with a single lender, but borrowing requires wrapped Bitcoin (WBTC or cbBTC) — your underlying BTC is held by the wrapper's custodian (BitGo/BiT Global for WBTC, Coinbase for cbBTC), reintroducing custodial bridge risk. Smart-contract and oracle risk also apply.
Figure triggers margin calls at 70% LTV and liquidates at 85% LTV. Morpho has no margin-call mechanism: positions become liquidatable automatically the moment LTV crosses 86%, with no warning threshold or response window. Figure gives borrowers 24 hours to respond to a margin call before any collateral is sold.
| Threshold | Figure | Morpho |
|---|---|---|
| Max Starting LTV | 75% | 86% |
| Margin Call | 70% LTV | None |
| Margin Call Window | 24 hours | None — automated liquidation |
| Liquidation | 85% LTV | 86% LTV |
Figure: 10.0 percentage point buffer between starting LTV (75%) and liquidation (85%). Morpho: 0.0 percentage point buffer between starting LTV (86%) and liquidation (86%). Figure provides a wider safety margin.
Choosing between Figure and Morpho requires evaluating total cost, custody risk, and which platform aligns with your borrowing profile. Figure uses custodial (figure markets mpc wallet, segregated) with 8.91%–11.5% APR, while Morpho uses smart contract (wrapped btc via custodial bridge) with ~4.3% (variable) APR.
On a $250,000 loan, Morpho costs $10,750 in the first year versus $24,775 at Figure, a difference of $14,025. Part of Figure's higher cost comes from its 1% origination fee, which adds $2,500 upfront on this loan size. Morpho charges no origination fee, so the only cost is interest.
The custody difference is material. Morpho uses smart contract (wrapped btc via custodial bridge), which means your Bitcoin requires multiple key holders to coordinate, reducing single-point-of-failure risk. Figure uses custodial (figure markets mpc wallet, segregated). In a platform insolvency scenario, Morpho borrowers' collateral is protected by the multisig architecture, while Figure borrowers may face creditor claims.
Figure is the better fit for borrowers who need smaller loans or instant access. Morpho is the better fit for borrowers who need smaller loans or more flexible access.
Key details to be aware of: Figure: 8.91% interest (9. Morpho: DeFi lending protocol — variable utilization-driven rates: WBTC/cbBTC-USDC markets have run ~3-5% in recent months. Single 86% LLTV parameter: you can borrow right up to it, but there is no margin call and zero buffer — positions are liquidatable the instant LTV exceeds 86%, and a liquidator may close up to 100% of the position (~4.
Morpho is cheaper. On a $500,000 loan held for 12 months, Figure costs $49,550 (8.91% APR + 1% origination fee) while Morpho costs $21,500 (4.3% APR). That is a $28,050 difference in the first year.
Figure uses custodial (figure markets mpc wallet, segregated). Morpho uses smart contract (wrapped btc via custodial bridge). Morpho presents lower custody risk because your collateral requires coordination among multiple key holders.
Figure's minimum loan is $5,000. Morpho has no minimum. Morpho is more accessible for smaller borrowers.
Figure issues a margin call at 70% LTV with a 24-hour response window and liquidates at 85% LTV. Morpho has no margin call — positions are liquidated automatically the moment LTV crosses 86%. Starting from a 50% LTV, Figure provides a 35-point buffer before liquidation, while Morpho provides a 36-point buffer.
It depends on your priorities. Figure (8.91%–11.5% APR, custodial (figure markets mpc wallet, segregated), min $5,000) is better for borrowers who value custodial (figure markets mpc wallet, segregated) and need smaller loan access. Morpho (~4.3% (variable) APR, smart contract (wrapped btc via custodial bridge), no minimum) is better for borrowers who value smart contract (wrapped btc via custodial bridge) and need smaller loan access. Use the rate table and cost comparison above to model your specific scenario.
Lygos offers 10% APR, $0 origination fees, and DLC-secured collateral where rehypothecation is cryptographically impossible.