The Self-Repaying Mortgage (SRM) is a revolutionary financial product built for the Bitcoin era. It allows you to purchase or refinance a home by using Bitcoin as 1:1 collateral. By leveraging the growth of your digital assets, the SRM is designed to gradually lower your monthly obligations and eventually eliminate your mortgage debt entirely.
The Core Mechanics: 1:1 Collateral
Unlike traditional mortgages that rely on debt-to-income ratios and credit scores, the SRM is an asset-based loan. To initiate an SRM, borrowers post 1:1 collateral (100% LTV) in Bitcoin. This Bitcoin is held in a bankruptcy-remote Special Purpose Vehicle (SPV) by our strategic partner, BitGo.
Key Strategic Advantages:
- Your Bitcoin is Your Credit Score: No credit checks, no income verification, and no W2 documentation are required. Your savings speak for themselves.
- Zero Liquidation Risk: Because the loan is dual-collateralized by both the property title and the Bitcoin, there are no margin calls. As long as you maintain your monthly terms, your collateral is secure regardless of market volatility.
- No Rehypothecation: Your Bitcoin is never lent out or used for platform leverage. It remains verifiable on-chain at all times.
Variable Interest & The "Sound Money" Discount
The SRM features a variable interest rate that rewards you for the strength of your collateral position. While the starting APR is determined by your PRN Loyalty Tier, the rate adjusts every 30 days based on your Collateral Ratio.
| Collateral Ratio | Loan-to-Value (LTV) | Diamond Tier APR | Basic Tier APR |
|---|---|---|---|
| 300% | 33% | 3.00% | 6.00% |
| 200% | 50% | 5.00% | 8.00% |
| 100% | 100% | 7.00% | 10.00% |
As the price of Bitcoin rises, your Collateral Ratio increases, which automatically lowers your interest rate. This creates a "virtuous cycle" where the appreciation of your asset makes your debt cheaper over time.
SRM vs. Traditional Mortgages
Traditional mortgages were designed for a world without high-growth digital assets. The SRM is built to outperform the legacy system in every metric.
| Metric | Traditional Mortgage | Self-Repaying Mortgage |
|---|---|---|
| Approval Hurdles | Hard credit pull, DTI, Tax returns | None |
| Typical Rate (30yr) | 5.5% – 7.5% (Fixed) | 3.0% – 10.0% (Variable/Loyalty) |
| Asset Appreciation | Home Equity only | Home Equity + 100% BTC Upside |
| Time to Ownership | Strictly 30 Years | Reduced as BTC CAGR grows |
PRN Loyalty Integration
The PRN token is the key to unlocking the most efficient mortgage terms. Higher loyalty tiers grant access to the lowest starting APRs and significant discounts on closing costs.
- Diamond Tier (10%+ PRN): Unlock a 3% APR floor and a 50% discount on closing fees.
- Multi-Mortgage Access: Diamond Tier holders are the only users eligible to hold up to two concurrent Self-Repaying Mortgages.