SALT charges 7.49%–10.5% 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 — SALT: 2026-09-29; Lava: 2026-08-28.
For the standardized $250,000, 50% LTV, 12-month scenario, SALT is 8.75% APR and Lava is 6.5% APR. SALT: 50% LTV · 1-year term.
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.
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. SALT pricing varies by starting ltv and term; Lava pricing varies by loan size. Actual offers can differ when those inputs change.
| Loan Size | SALT APR | Lava APR | SALT Total Year-1 Cost | Lava Total Year-1 Cost | Savings |
|---|---|---|---|---|---|
| $250,000 | 8.75% | 6.5% | $21,875 | $21,788 | Nearly even |
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. Terms checked individually — SALT: 2026-09-29; Lava: 2026-08-28.
Both SALT and Lava use similar custody approaches: custodial and distributed-key custody (institutional custodians) respectively. SALT 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. 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.
SALT triggers margin calls at 83.33% LTV and liquidates at 90.91% 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). SALT gives borrowers 48 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 | SALT | Lava |
|---|---|---|
| Max Starting LTV | 70% | 60% |
| Margin Call | 83.33% LTV | No published fixed threshold — warnings/notifications and Liquidation Protection are account-specific |
| Margin Call Window | 48 hours | No fixed window published; warnings/notifications apply |
| Liquidation | 90.91% LTV | Account-specific (model estimate: historically published 85% LTV) |
This comparison uses each lender's own maximum starting LTV, not a common 50% starting position. SALT: 20.9 percentage point modeled buffer between maximum starting LTV (70%) and liquidation (90.91% 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.
Choosing between SALT and Lava requires evaluating total cost, custody risk, and which platform aligns with your borrowing profile. SALT uses custodial with 7.49%–10.5% APR, while Lava uses distributed-key custody (institutional custodians) with 6.5%–7.5% APR.
At $250,000, both lenders have comparable first-year costs: SALT at $21,875 and Lava at $21,788. The difference is marginal, so the decision turns on custody architecture, liquidation terms, and platform features rather than raw cost.
Both platforms use similar custody approaches. SALT operates via custodial, and Lava uses distributed-key custody (institutional custodians). Neither platform rehypothecates borrower collateral.
SALT 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: SALT: Standard rates vary by starting LTV and term, not loan size. Published one-year APRs are 7. 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.
The costs are nearly identical. SALT totals $21,875 and Lava totals $21,788 under the standardized scenario. Other factors like custody model and liquidation terms may be more important in this case.
SALT uses custodial. Lava uses distributed-key custody (institutional custodians). Both platforms present similar custody risk profiles.
SALT's minimum loan is $1,000. Lava's minimum is $100. Lava is more accessible for smaller borrowers.
SALT issues a margin call at 83.33% LTV with a 48-hour response window and liquidates at 90.91% 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 41 points at SALT and 35 points at Lava.
It depends on your priorities. SALT (7.49%–10.5% APR, custodial, min $1,000) 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.
Already borrowing with Lava? See your interest savings, terms head-to-head, and counterparty risk on your own numbers.
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