Bitcoin Loan Comparison

Ledn vs. Lava

Ledn charges 9.25%–11.49% APR with a 2% origination fee (waived for US/Canada) using custodial (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 — Ledn: 2026-09-02; Lava: 2026-08-28.

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

For the standardized $250,000, 50% LTV, 12-month scenario, Ledn is 10.99% APR and Lava is 6.5% APR. Ledn: 12-month loan; published APR tier for the selected size.

Ledn charges a 2% origination fee (currently waived for US and Canada borrowers), 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 $5,687 in total first-year cost (interest plus applicable fees or charges) — excluding Ledn's 2% origination fee, which is waived for US/Canada but applies elsewhere.

Ledn vs. Lava: Feature-by-Feature Comparison

Ledn

Lava

Interest Rate (APR)

10.99%

6.5%Lava

Pricing Basis

Loan size

Fees / Charges

$0 (waived for US/Canada)Ledn

2% annual capital charge

Max Starting LTV

50%

60%Lava

Margin Call Threshold

70% LTVLedn

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

Threshold-based

No fixed window published; warnings/notifications apply

Custody Model

Custodial (segregated)

Distributed-key custody (institutional custodians)

Rehypothecation

Yes

NoLava

Interest Payment

At maturity

Capitalized

Minimum Loan

$500

$100Lava

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

Loan Size	Ledn APR	Lava APR	Ledn Total Year-1 Cost	Lava Total Year-1 Cost	Savings
$250,000	10.99%	6.5%	$27,475	$21,788	$5,687 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. Ledn: $0 (waived for US/Canada) — excluded from the total for the stated waiver. Lava: 2% annual capital charge. Terms checked individually — Ledn: 2026-09-02; Lava: 2026-08-28.

Custody and Collateral Security

Both Ledn and Lava use similar custody approaches: custodial (segregated) and distributed-key custody (institutional custodians) respectively. Ledn uses custodial (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. Ledn also rehypothecates deposited assets, meaning your collateral may be lent to third parties. 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.

Ledn: High (Custodial)

•Custodial (segregated)
•Rehypothecation: Yes
•At-maturity interest payments
•2% origination waived for US/Canada.

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: Ledn vs. Lava

Ledn 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).

Threshold	Ledn	Lava
Max Starting LTV	50%	60%
Margin Call	70% LTV	No published fixed threshold — warnings/notifications and Liquidation Protection are account-specific
Margin Call Window	Threshold-based	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. Ledn: 30.0 percentage point modeled buffer between maximum starting LTV (50%) 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)). Ledn provides a wider safety margin.

Which is better: Ledn or Lava?

Choosing between Ledn and Lava requires evaluating total cost, custody risk, and which platform aligns with your borrowing profile. Ledn uses custodial (segregated) with 9.25%–11.49% 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 $27,475 at Ledn, a difference of $5,687.

Both platforms use similar custody approaches. Ledn operates via custodial (segregated), and Lava uses distributed-key custody (institutional custodians). Ledn rehypothecates collateral.

Ledn 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: Ledn: 2% origination waived for US/Canada. No monthly payments; accrued interest and any applicable admin fee are due at maturity or refinance. 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 Ledn 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, Ledn costs $27,475 (10.99% APR) while Lava costs $21,788 (6.5% APR). That is a $5,687 difference in the first year.

How does Ledn's custody model compare to Lava?

Ledn uses custodial (segregated) and rehypothecates deposited assets. Lava uses distributed-key custody (institutional custodians). Both platforms present similar custody risk profiles.

What is the minimum loan amount at Ledn vs Lava?

Ledn's minimum loan is $500. Lava's minimum is $100. Lava is more accessible for smaller borrowers.

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

Ledn issues a margin call at 70% LTV (threshold-based, no fixed 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 Ledn and 35 points at Lava.

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

It depends on your priorities. Ledn (9.25%–11.49% APR, custodial (segregated), min $500) is better for borrowers who value custodial (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

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