Loan Scenario

$5M Bitcoin Loan

Five million dollar Bitcoin-backed loan for high-net-worth individuals and institutions. The savings vs Unchained at this level: $309,000 over 12 months.

Loan Overview

Loan Amount

$5,000,000

Collateral

100.0 BTC

Monthly Interest

$41,667

12-Month Cost

$500,000

APR

10%

Origination

$0

Rehypothecation

DLC-constrained

Quick Estimate

BTC: $64,000 Live Price
Loan Amount
$5,000,000
BTC Required
156.250 BTC
Monthly Interest
$41,667
10% APR · 50% LTV · Non-custodialFull Calculator →

Who borrows $5,000,000?

At $5,000,000, you are in institutional territory. Borrowers at this level include family offices, crypto funds restructuring positions, high-net-worth individuals funding acquisitions, and companies using Bitcoin treasury as collateral for operational capital.

The counterparty risk at $5,000,000 is existential, not theoretical. Celsius lost $4.7 billion in customer assets. BlockFi's bankruptcy erased hundreds of millions. Lygos reduces platform custody exposure by keeping your 100.0 BTC on the Bitcoin blockchain in a DLC whose pre-signed outcomes constrain how collateral can move.

How Much You Save vs Competitors

CompetitorSavings with Lygos (12mo)
Lygos (12mo)$500,000
vs. Ledn$95,000–$120,000
vs. NexoExceeds Nexo max
vs. Unchained$309,000

Your 100.0 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

50% Safe80% At-risk alert90% Liquidation

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 $5,000,000 Bitcoin-backed loan with Lygos costs $500,000 over 12 months at 10% APR with $0 origination fees. Monthly interest is $41,667. Collateral requirement is approximately 100.0 BTC at 50% LTV.

At Lygos's 50% LTV ratio, you need approximately 100.0 BTC in Bitcoin collateral for a $5,000,000 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 100.0 BTC as collateral instead of selling, you access $5,000,000 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 100.0 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 $5,000,000?

10% APR, $0 origination fees, and your BTC secured on the Bitcoin blockchain via DLC.

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