Updated FAQ Document: Bitcoin Lines of Credit (BLOC & BBLOC)
General Information
Table of Contents
- What is the difference between a Bitcoin Line of Credit (BLOC) and a Bitcoin Bond Line of Credit (BBLOC)?
- Can I use my Line of Credit (LoC) proceeds for anything?
- Comparison: BBLOC vs. BLOC
- Bitcoin Bond Line of Credit (BBLOC)
- Bitcoin Line of Credit (BLOC)
What is the difference between a Bitcoin Line of Credit (BLOC) and a Bitcoin Bond Line of Credit (BBLOC)?
The BLOC uses your BTC or prBTC as direct collateral. It features a flexible LTV (standardized at 60% for calculations) but carries liquidation risk if Bitcoin’s price drops significantly. The BBLOC allows you to borrow against the par value of the U.S. Treasury (UST) allocation within your Bitcoin Bond. Because it is secured by UST notes, the BBLOC has zero liquidation risk and no margin calls, regardless of Bitcoin’s market price.
Can I use my Line of Credit (LoC) proceeds for anything?
Yes. Once your BBLOC or BLOC credit line is established, you can deploy capital however you see fit—reinvesting in a business, funding operations, acquiring assets, or covering personal expenses—all while maintaining your Bitcoin or Bitcoin Bond position.
BBLOC vs. BLOC
Two products, one goal: liquidity without selling
| Feature | BBLOC | BLOC |
|---|---|---|
| Collateral type | Hybrid (UST + BTC) | BTC / prBTC |
| LTV ratio to initiate loan | 100% LTV (par value of UST) | 50% LTV |
| Starting APR | 12% | 13% |
| Lowest APR | 8% | 5% |
| Margin calls | None | At 75% LTV |
| Liquidation risk | None | Yes — LTV-based thresholds |
| Payment type | Interest only | Interest only |
| Minimum repayments | None required | None required |
Bitcoin Bond Line of Credit (BBLOC)
How much can I borrow against my Bitcoin Bond?
Your principal-protected Bitcoin Bond serves as pristine collateral. You can borrow against the par value of the UST allocation at a 1:1 ratio (100% LTV).
What are the BBLOC interest rates?
Rates are interest-only and determined by your PRN Loyalty Tier:
- Diamond: 8% APR
- Gold: 9% APR
- Silver: 11% APR
- Basic: 12% APR
What is the risk of liquidation on a BBLOC?
There is zero liquidation risk. Because the loan is backed by stable U.S. Treasury notes within the bond structure, your Bitcoin exposure remains fully intact even during market downturns.
Bitcoin Line of Credit (BLOC)
What are the key terms of the BLOC?
- Loan Amounts: $500 to $1M.
- Term: Indefinite (no fixed maturity date).
- Repayment: Interest-only payments due monthly; principal can be paid down anytime.
- Eligibility: Available globally for individuals and businesses; no credit checks or income verification required.
What are the BLOC interest rates?
The base rates per PRN Loyalty Tier are:
- Diamond: 9% APR
- Gold: 11% APR
- Silver: 12% APR
- Basic: 13% APR
Note: With Diamond status and an LTV < 20%, rates can be as low as 5% APR.
How can I lower my BLOC interest rate?
There are two primary ways to reduce your rate:
- Loyalty Tiers: Higher PRN loyalty levels (based on loan/portfolio amount) unlock lower base rates.
- Overcollateralization: For every 10% the loan is overcollateralized beyond the starting LTV, your rate drops by 0.2% (up to a maximum reduction of 4%).
What are the liquidation thresholds for the BLOC?
If the value of your Bitcoin collateral falls, the following thresholds apply:
- Margin Warning: 70% LTV
- Margin Call: 75% LTV
- Final Call: 80% LTV
- Auto Liquidation: 85% LTV
Note: At the Auto Liquidation stage, roughly 57% of collateral is sold to return LTV to ≤ 65%.
Is there a "cure period" for a Margin Call?
No specific amount of time is guaranteed. While warning ratios are designed to give you time to adjust your position, volatile markets could trigger all levels, including liquidation, within a single day.