$500K Bitcoin Loan
Half-million dollar loan for major purchases or business operations. Lygos charges $50,000 over 12 months at 10% APR vs Unchained's $80,900 (14.18% + 2% origination).
Loan Overview
Loan Amount
$500,000
Collateral
10.0 BTC
Monthly Interest
$4,167
12-Month Cost
$50,000
APR
10%
Origination
$0
Rehypothecation
DLC-constrained
Quick Estimate
BTC: $64,000 Live PriceWho borrows $500,000?
Borrowers at $500,000 are typically funding real estate acquisitions, business expansion, or bridge financing between liquidity events. At this size, the cost difference between lenders is material. A 4-point APR spread on $500,000 is $20,000 per year.
Lygos is the only platform at this tier that offers non-custodial collateral. Unchained uses collaborative multisig (better than full custody, but still requires their co-signing). Ledn and Nexo take full custody and can rehypothecate your Bitcoin.
How Much You Save vs Competitors
| Competitor | Savings with Lygos (12mo) |
|---|---|
| Lygos (12mo) | $50,000 |
| vs. Ledn | $9,500–$12,000 |
| vs. Nexo | Varies by tier |
| vs. Unchained | $30,900 |
Your 10.0 BTC stays on-chain
Your Bitcoin collateral is locked in a Discreet Log Contract on the Bitcoin blockchain, not in a platform-controlled custodial wallet. The available outcomes are pre-signed before collateral is committed, constraining how funds can move and making the contract flow verifiable on-chain.
Your collateral buffer
From 50% LTV, Bitcoin can drop 37.5% before the 80% at-risk alert. A further 11.1% drop reaches 90% liquidation.
Frequently Asked Questions
A $500,000 Bitcoin-backed loan with Lygos costs $50,000 over 12 months at 10% APR with $0 origination fees. Monthly interest is $4,167. Collateral requirement is approximately 10.0 BTC at 50% LTV.
At Lygos's 50% LTV ratio, you need approximately 10.0 BTC in Bitcoin collateral for a $500,000 loan. Your BTC is locked in a non-custodial Discreet Log Contract whose pre-signed outcomes constrain how collateral can move.
Borrowing against Bitcoin is generally not a taxable event in the United States, unlike selling, which triggers capital gains tax. By pledging 10.0 BTC as collateral instead of selling, you access $500,000 in liquidity while maintaining your Bitcoin position and deferring any tax liability. Consult a tax professional for your specific situation.
Lygos uses a 50% loan-to-value ratio, meaning your 10.0 BTC collateral provides a significant buffer. At 50% LTV, Bitcoin would need to drop 37.5% before reaching the informational at-risk threshold at 80% LTV. There is no mandatory margin-call step; if LTV reaches the 90% liquidation threshold, the DLC contract executes a transparent on-chain liquidation rather than a discretionary decision by a custodian. The available outcomes are pre-signed before you commit collateral.
Lygos is a regulated lender and requires identity verification for all loans. However, unlike custodial platforms, your Bitcoin collateral never leaves the blockchain. KYC verifies your identity; DLCs protect your assets. The distinction matters: your personal information is with Lygos, but your Bitcoin is secured by cryptography, not trust.
Ready to borrow $500,000?
10% APR, $0 origination fees, and your BTC secured on the Bitcoin blockchain via DLC.