Bitcoin Line of Credit – Peoples Reserve

Understanding the Bitcoin Line of Credit (BLOC)

The Bitcoin Line of Credit (BLOC) allows you to access immediate liquidity by borrowing against your Bitcoin holdings without triggering a taxable sale. This product is designed for holders who wish to maintain long-term exposure to Bitcoin price appreciation while unlocking the purchasing power of their assets for flexible use.

At a Glance

Feature	Details
Collateral Type	Bitcoin (BTC)
Credit Check	None Required
Approval Time	Instant
Tax Status	Non-Taxable Event (Borrowing)
Risk Factor	Liquidation Risk Applies

How it Works

The BLOC operates as an on demand credit line secured solely by your BTC. Unlike traditional bank loans, there are no income verifications or credit score requirements because the loan is fully collateralized. When you deposit Bitcoin into the BLOC protocol, you can draw funds in stablecoins or fiat up to the fixed 50% Loan-to-Value (LTV) limit.

As long as the value of your Bitcoin remains above the liquidation threshold, you can keep the credit line open indefinitely. However, if the market price of Bitcoin drops significantly, you must either add more collateral or repay a portion of the loan to avoid a partial or total liquidation of your assets.

Product Options

The BLOC offers a streamlined borrowing experience where the primary variable for your interest rate is based on your loyalty levels:

The BLOC offers a streamlined borrowing experience where the interest cost is the primary variable based on your loyalty status:

Liquidity Access: Draw funds whenever needed and repay at your own pace.
Flexible Repayment: No fixed monthly installments; interest is calculated based on the outstanding balance.
Loyalty Integration: Hold PRN tokens to access significantly lower annual interest rates while maintaining high capital efficiency.

Loyalty Tiers and Terms

While the standard borrowing limit is 50% LTV, your interest costs are significantly reduced as your PRN Loyalty Level increases—and users can further lower their APR by over-collateralizing their positions to unlock the Lowest Rates. For every additional 50% of collateral you post, your BLOC interest rate drops by 1%. You could overcollateralize up to 200%,

Loyalty Level	Starting Rate (APR)	Lowest Rate (APR)
Basic	13%	9%
Silver	12%	8%
Gold	11%	7%
Diamond	9%	5%

Asset Integrity and Internal Protocol

Every transaction performed through the BLOC is governed by a strict 1:1 reserve policy. People's Reserve prioritizes the safety of your collateral through institutional-grade protocols:

No Rehypothecation: Your Bitcoin is never lent out to third parties or used for platform leverage. It remains 1:1 backed in secure storage.
Verified Reserves: All collateral holdings are audited against the platform's cold storage to maintain solvency and transparency.
Instant Transparency: Collateral levels are monitored in real-time, and users receive automated alerts if their LTV approaches the margin call zone.

Managing Liquidation Risks: Margin Calls and Safeguards

The BLOC is backed by Bitcoin, your loan includes a "health monitor" known as your Loan-to-Value (LTV) ratio. If market fluctuations cause your LTV to rise to 75%, a Margin Call is triggered, requiring you to proactively add BTC collateral or pay down your principal; failing to stabilize the position before it hits 85% results in an automated partial liquidation. This partial liquidation is where the system sells roughly 57% of your collateral to instantly reset your loan to a safe 65% LTV level.

BLOC Health Monitor: LTV Safeguard Tiers

LTV Ratio	Status	Action / Description
50%	Healthy	Opening Target. The maximum initial leverage allowed.
70%	Warning	Proactive Notification. Monitor market conditions closely.
75%	Margin Call	Action Required. Add BTC or pay down principal to lower LTV.
80%	Final Call	Critical Threshold. Last opportunity for manual intervention.
85%	Liquidation	Automated Reset. System sells ~57% of BTC to reset LTV to 65%.