What is a Loan-To-Value Ratio?


A loan’s LTV (loan-to-value) ratio determines the amount of crypto collateral you need to post in order to take out a loan. This number only applies when you’re getting a collateralized loan. These types of loans require clients to give the lender an asset, in our case digital currency, to hold until their loan is paid off. Click here for more information about our collateralized loans.

BlockFi Crypto LTV Ratio

BlockFi’s collateralized loans involve clients staking their crypto assets as collateral in order to borrow USD. We currently support collateral posted in Bitcoin, Ether, or Litecoin. BlockFi offers LTVs up to 50%. That number is based on a proven model to limit our exposure to risk and our client’s likelihood of hitting a trigger event.

Margin calls happen when the value of your collateral decreases outside of a safe range. BlockFi’s first crypto margin call occurs at a 70% LTV. At that time, the client has 72 hours to post additional collateral to bring the LTV back within a healthy range. Clients can also pay down their loan balance to fix the issue. If your LTV reaches 80% LTV, BlockFi will liquidate a portion of the collateral to lower the LTV back into the safe zone.

Why Do I Need to Stake Collateral for My Loan?

The main reason people need to stake collateral is for limiting risk. For the client, it can be easier to obtain a loan when you offer collateral in return. By staking collateral, you typically have access to more funding at better rates and don’t have to sell your assets to raise cash. It also makes it easier to get a loan overall.

For the lender, taking collateral provides peace of mind. When BlockFi lends money, we need to be confident that our clients will repay their loans. If we hold collateral, we lower our risk of repayment issues. More importantly, it allows us to offer clients some of the most competitive rates in the market.

Click here to learn more about collateralized loans.

Benefits of a BlockFi Loan

Our clients typically have short term funding needs but also see the value of their cryptocurrencies going up in the long term. Selling your crypto can also trigger tax consequences, making that option less desirable. As a result, some people are not interested in selling their Bitcoin (BTC), Ether (ETH), or Litecoin (LTC) to meet their financial goals. Instead, they will borrow against their crypto to get USD with BlockFi.

Our clients use their loan for a number of things. Some of our clients are first time home buyers. A BlockFi loan is a great way to fund a down payment on a real estate property. Other clients are small business owners and need an option for funding their business. BlockFi is also a great option for people looking to fund payroll or other business expenses. We even have clients that use BlockFi loans to fund their lifestyle. Travelling can be expensive, but accessing the value of your long-term crypto investments opens the door to finally booking that trip around the world you’ve been planning.

How Can You Get a BlockFi Loan?

You can apply for a crypto loan. After applying, you will receive a decision from our team within 1 business day. BlockFi clients often go from application-to-funding in as few as 90 minutes.

If you have any questions about BlockFi or how our loans work, please contact us at support@blockfi.com. We love hearing from you.

BlockFi lets you use your Bitcoin, Ether, and Litecoin to do things like buy a home, pay down debt, or even fund your business without having to sell your crypto. Start your application now and get funded in as few as 90 minutes.

How a Bitcoin loan works

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Client Testimonials

PEOPLE ARE SAYING

As an investor with significant crypto holdings, BlockFi gave me a valuable tool to get capital, at a fair price, without liquidating my crypto holdings. Aside from offering the best price, their approach to secure storage and thoughtful loan to value ratios gave me confidence that they were the right partner to work with for my cryptocurrency needs.

ANDREW HANCOX
CEO, BLOCK8 VENTURES

As a long term crypto holder, it’s important to me to be able to leverage my existing capital without selling. Earning monthly interest all in one place has simplified how I use my cryptoassets.

ANGELA CERESNIE
CEO, CLIMB CREDIT

BlockFi makes it fun to be a hodler again.

DATOIMEE
REDDIT USER

We have felt strongly that this market needs access to debt beyond fragmented, short term margin trading options in order to reduce volatility, facilitate scale and put the financial infrastructure for this ecosystem on par with other asset classes. We're happy to have BlockFi as part of the Consensys family and see tremendous growth opportunities for their platform.

KAVITA GUPTA
MANAGING PARTNER, CONSENSYS

BlockFi was my first choice when looking to use crypto as collateral for a fiat loan. BlockFi's friendly and professional staff helped make for a very smooth process from start to finish.

STEVEN HATZAKIS
BLOCKFI CLIENT

It feels great to have my crypto be recognized as a real asset, which can used as collateral. I'm going to be able to immediately pay off a credit card I've been carrying a balance on.

CASEY R.
BLOCKFI CLIENT

Learn more about earning crypto interest and crypto-backed loans with BlockFi

Apply in less than two minutes.

Fastest Bitcoin and Ether backed loans in the industry.

Disclaimer: Rates for BlockFi products are subject to change. Digital currency is not legal tender, is not backed by the government, and BIA accounts are riot subject to FDIC or SIPC protections. Security is our top priority. Please see our Vulnerability Disclosure Form and Bug Bounty Program.
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Disclaimer: Rates for BlockFi products are subject to change. Digital currency is not legal tender, is not backed by the government, and BIA accounts are not subject to FDIC or SIPC protections. Security is our top priority. Please see our Vulnerability Disclosure Form and Bug Bounty Program.
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