What Happens to Your Crypto During the Loan Term?

From Your Wallet to Segregated Custody

When a loan is approved, you transfer the agreed collateral to a dedicated deposit address. The assets are held in institutional-grade custody for the life of the loan, in wallets that are segregated from operating funds and from other borrowers’ collateral.

Segregation matters because it means your collateral is not pooled, rehypothecated, or lent onward. It sits where it can be identified and, when the loan is closed, returned.

How Collateral Is Protected

• Private keys are generated and stored in hardware security modules; no single person can move funds alone.
• Withdrawals require multi-party approval and are subject to address allow-listing and time delays.
• Balances are reconciled on-chain daily and independently attested on a regular schedule.
• Operational access is logged, monitored, and reviewed by a separate risk function.

What You Can See While the Loan Is Open

Your dashboard shows the collateral balance, its current market value, your live LTV, and the distance to each risk threshold. You can add collateral at any time, and you can make partial or full repayments to bring LTV down.

Collateral is not staked, traded, or otherwise put to work while it secures your loan. The only movements you should expect are deposits you initiate and, in a liquidation scenario, sales required to restore the position.

Repayment and Release

Once the outstanding balance and any accrued interest are settled, the loan is closed and collateral is released to the withdrawal address you have verified. Releases are typically completed within one business day, subject to network conditions and standard security checks.

This article is for general informational purposes only and does not constitute financial, investment, legal, or tax advice. Digital assets are volatile, and borrowing against them involves risk. Loan availability and final terms are subject to eligibility, underwriting, and market conditions.