Bitcoin backed loan

A bitcoin-backed loan lets you borrow money by using your bitcoin as collateral.

Instead of selling your bitcoin to get cash, you temporarily lock it in your account and receive a loan based on its value. This means you can access funds right away while still holding onto your bitcoin.

Many people choose this option if they need cash but don’t want to sell their bitcoin, especially if they believe its value may increase over time.

Once you repay the loan (plus any interest), your bitcoin is unlocked and returned to you.

Bitcoin-backed loans are currently available to a limited number of Shakepay customers as part of our beta program. Access may expand over time.

No. You don’t need to sell your bitcoin to get a loan.

Instead, your bitcoin is used as collateral, which means it’s temporarily locked while your loan is active. You still own your bitcoin the entire time, as long as you keep up with your loan terms.

This allows you to access cash without giving up your bitcoin or missing out if its price increases. Once you repay your loan, your bitcoin is unlocked and returned to you.

You can use your loan funds for most personal purposes, such as everyday purchases, paying bills, home improvements, travel, starting a business, or education expenses.

However, this is not a margin loan. You may not use the loan proceeds to purchase additional cryptocurrency. Doing so would violate the terms and conditions and may result in the termination of your loan.

During our beta program, you can borrow anywhere from $100 to $50,000. These limits may change as we continue to test and improve the product. For the most up-to-date loan amounts available to you, please refer to the loan flow in the Shakepay app.

During our beta program, we offer a flat interest rate of 9.5% APR. This rate may change as we continue to test and improve the product. For the most accurate and up-to-date rate available to you, please refer to the loan flow in the Shakepay app before confirming your loan.

You can apply for a loan directly in the Shakepay app or on our website. If you’re eligible for the beta, you’ll see the option to start a loan application.

The application process is simple and guided step by step. You’ll be able to review your loan amount, collateral, and terms before confirming.

No, there is no credit check.

Your loan is fully secured by your bitcoin collateral, which means we don’t rely on your credit history to approve your application.

Once you complete your loan application, your funds are instantly deposited into your Shakepay cash account.

This means you can access and use your funds right away, without waiting for bank transfers or additional processing time.

Loan-to-Value (LTV) is the ratio between how much you owe on your loan and the value of your bitcoin collateral, both measured in Canadian dollars (CAD).

For example, if you borrow $5,000 and provide $10,000 worth of bitcoin as collateral, your LTV is 50%.

Your LTV can change over time for two reasons:

Because of this, it’s important to keep an eye on your LTV, as it helps determine the health of your loan and whether any action may be required.

If the price of bitcoin goes down, the value of your collateral decreases. This causes your Loan-to-Value (LTV) to increase, meaning your loan becomes riskier.

As your LTV rises, your loan may move closer to important thresholds like a margin call or, in more extreme cases, liquidation. If this happens, you may need to take action, such as adding more bitcoin or repaying part of your loan, to bring your LTV back to a safer level.

If the price of bitcoin goes up, the value of your collateral increases. This lowers your LTV, which improves the overall health of your loan.

A lower LTV means your loan is safer and further away from margin call or liquidation thresholds. In some cases, this may also give you more flexibility, such as the option to withdraw excess collateral or borrow additional funds (if available).

A margin call happens when your loan’s LTV reaches 70%, meaning your loan is becoming higher risk.

If this happens, you’ll be notified in the app and by email that action is required to protect your loan from liquidation.

To bring your LTV back to a safer level, you can:

Taking action quickly can help you avoid liquidation and keep your loan in good standing.

Liquidation is a protective process that helps ensure your loan is repaid.

It can happen in two situations:

If either of these occur, a portion of your bitcoin collateral will be automatically sold to cover what’s owed on your loan, along with a 3% liquidation fee.

Before reaching this point, we aim to notify you (for example, through margin call alerts) so you have time to take action, such as adding collateral or making a payment, to avoid liquidation.

If liquidation does happen, any remaining collateral after the loan and fees are covered will be returned to you, and your loan will be considered closed.

Yes, you can repay your loan at any time with no early repayment penalties.

This gives you flexibility to close your loan whenever it works best for you, whether that’s shortly after taking it out or closer to the end of the term.

You can repay your loan directly from your Shakepay cash account.

If your funds are held outside of Shakepay, you’ll need to transfer them into your Shakepay cash account first before making a repayment. Once the funds are available, you can easily complete your payment in the app.

No, you can only have one active loan at a time.

This helps keep your loan simple to manage and ensures your collateral is tied to a single loan. Once your current loan is fully repaid, you may be eligible to apply for a new one.

Your bitcoin collateral is securely held with a regulated, institutional-grade custodian while your loan is active.

We use trusted custody infrastructure designed specifically for digital assets, with a strong focus on security, compliance, and asset protection. Your bitcoin is held in segregated wallets, meaning it is not pooled with other customers’ assets.

Your collateral is also stored using offline (cold) storage and advanced security technologies to help protect against unauthorized access.

Throughout the life of your loan, your bitcoin remains securely held and is only used as collateral for your loan. Once your loan is repaid, your bitcoin is returned to you.

Protecting your bitcoin is a top priority at Shakepay.

We use industry-leading security practices and work with trusted partners to safeguard your assets. This includes secure custody solutions, strict access controls, and continuous monitoring to help protect against unauthorized activity.

Your bitcoin collateral is held with a regulated custodian that specializes in digital asset security. These providers are subject to rigorous security standards and oversight.

In addition, we regularly review and test our systems to ensure they meet high security and reliability standards.

While no system can ever be completely risk-free, we are committed to using best-in-class security practices to keep your assets protected throughout the duration of your loan.

No, Shakepay does not rehypothecate your collateral.

Your bitcoin is always yours and is held in your name while your loan is active. It is not lent out, reused, or used for any other purpose.

Your collateral is held securely and used only to support your loan. Once your loan is fully repaid, your bitcoin is returned to you.

You can close your loan at any time by repaying the full outstanding balance, including any accrued interest.

Once your balance reaches $0, your loan will automatically be closed and your itcoin collateral will be unlocked and returned to you.

There are no additional steps required, and no penalties for closing your loan early..

Yes. bitcoin-backed loans are offered in Canada under exemptive relief granted by Canadian securities regulators. You can learn more here.

Shakepay is committed to complying with all applicable legal and regulatory requirements, including those related to anti-money laundering and consumer protection. As the regulatory landscape evolves, we will continue to adapt our product to remain compliant.

No. This product is currently in beta.

This means that certain features may change over time, and limits, rates, or availability may be updated as we continue to improve the experience.

We’re actively building and refining the product based on customer feedback, with the goal of making it better and more widely available over time.