Bitcoin Loan Comparison

Nexo vs. Lava

Nexo charges 0.9%–15.9% APR with $0 origination fees using custodial. 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 — Nexo: 2026-09-29; Lava: 2026-08-28.

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

For the standardized $250,000, 50% LTV, 12-month scenario, Nexo is 0.9%–15.9% APR and Lava is 6.5% APR. Nexo: Published upper rate; actual rate depends on account terms. Because at least one price is variable or account-tier dependent, the comparison is an estimate rather than a rate winner.

Lava charges a 2% annual fee (its “capital charge”) on the year's peak outstanding balance that recurs every year the line stays open — a fee that raises the effective cost above the headline rate from the day you borrow.

Nexo vs. Lava: Feature-by-Feature Comparison

Nexo

Lava

Interest Rate (APR)

0.9%–15.9%

6.5%

Pricing Basis

Wealth Tier, LTV, and asset

Loan size

Fees / Charges

$0Nexo

2% annual capital charge

Max Starting LTV

50%

60%Lava

Margin Call Threshold

71.4% LTVNexo

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

Liquidation Threshold

83.33% LTV

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

Margin Call Window

Threshold-based

No fixed window published; warnings/notifications apply

Custody Model

Custodial

Distributed-key custody (institutional custodians)

Rehypothecation

Yes

NoLava

Interest Payment

Capitalized

Minimum Loan

$50Nexo

$100

Cost on a $250,000 Loan: Nexo 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. Nexo pricing varies by wealth tier, ltv, and asset; Lava pricing varies by loan size. Actual offers can differ when those inputs change.

Loan Size	Nexo APR	Lava APR	Nexo Total Year-1 Cost	Lava Total Year-1 Cost	Savings
$250,000	0.9%–15.9%	6.5%	$43,074	$21,788	Estimate only

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. Lava: 2% annual capital charge. Variable or account-tier pricing remains an estimate and is not awarded a winner. Terms checked individually — Nexo: 2026-09-29; Lava: 2026-08-28.

Custody and Collateral Security

Both Nexo and Lava use similar custody approaches: custodial and distributed-key custody (institutional custodians) respectively. Nexo uses custodial. 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. Nexo 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.

Nexo: High (Custodial)

•Custodial
•Rehypothecation: Yes
•Interest capitalized (compounding)
•Published rates range from 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: Nexo vs. Lava

Nexo triggers margin calls at 71.4% LTV and liquidates at 83.33% 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	Nexo	Lava
Max Starting LTV	50%	60%
Margin Call	71.4% 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	83.33% 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. Nexo: 33.3 percentage point modeled buffer between maximum starting LTV (50%) and liquidation (83.33% LTV). Lava: 25.0 percentage point modeled buffer between maximum starting LTV (60%) and liquidation (Account-specific (model estimate: historically published 85% LTV)). Nexo provides a wider safety margin.

Which is better: Nexo or Lava?

Choosing between Nexo and Lava requires evaluating total cost, custody risk, and which platform aligns with your borrowing profile. Nexo uses custodial with 0.9%–15.9% APR, while Lava uses distributed-key custody (institutional custodians) with 6.5%–7.5% APR.

The standardized table shows a first-year estimate, but at least one lender still prices by a variable rate or account tier. Treat the dollar totals as scenario estimates, not a definitive cheaper-lender ranking.

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

Nexo 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: Nexo: Published rates range from 0.9% to 15. 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 Nexo or Lava cheaper for a $250,000 Bitcoin-backed loan?

The standardized $250,000, 50% LTV, 12-month estimate is $43,074 for Nexo and $21,788 for Lava. Because at least one rate is variable or account-tier dependent, this is not a definitive cheaper-lender ranking.

How does Nexo's custody model compare to Lava?

Nexo uses custodial 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 Nexo vs Lava?

Nexo's minimum loan is $50. Lava's minimum is $100. Nexo is more accessible for smaller borrowers.

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

Nexo issues a margin call at 71.4% LTV (threshold-based, no fixed window) and liquidates at 83.33% 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 33 points at Nexo and 35 points at Lava.

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

It depends on your priorities. Nexo (0.9%–15.9% APR, custodial, min $50) is better for borrowers who value custodial 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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