What is a bitcoin line of credit?
A bitcoin line of credit lets you borrow CAD by using your bitcoin as collateral.
Instead of selling your bitcoin to get cash, you can pledge eligible bitcoin as collateral and open a reusable credit line based on its value.
You can then draw from your available credit when you need funds, while continuing to hold your bitcoin.
Many people choose this option when they need access to cash but do not want to sell their bitcoin, especially if they want to keep their bitcoin exposure over time.
As you repay what you have borrowed, your outstanding balance goes down. When you fully close the line of credit, your remaining bitcoin collateral is released back to you.
Who can access the bitcoin line of credit?
The bitcoin line of credit will be available to eligible Shakepay customers. Access, limits, and availability may vary and may expand over time.
Do I need to sell my bitcoin to use a line of credit?
No. You don’t need to sell your bitcoin to use a line of credit.
Instead, your bitcoin is used as collateral, which means it is pledged while your line of credit is open. You still own your bitcoin, as long as you keep up with the terms of the line of credit.
This lets you access cash without giving up your bitcoin or missing out if its price increases. You may also be able to withdraw eligible collateral while your line of credit remains in a healthy LTV range.
What can I use borrowed funds for?
You can use funds you borrow 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 borrowed funds to purchase additional cryptocurrency. Doing so would violate the terms and conditions and may result in restrictions or closure of your line of credit.
Is there a minimum or maximum credit limit?
Your credit limit depends on the amount of bitcoin you pledge as collateral, the CAD value of that bitcoin, your LTV, and any product limits that apply. The Shakepay app will show the minimum and maximum amounts available to you before you open your line of credit or draw funds.
What interest rates do you offer?
The Shakepay app will show the current APR before you open your line of credit or draw funds. Interest accrues only on the amount you have borrowed, not on unused available credit. Rates may change over time, so always review the terms shown in the app before confirming.
How do I open a bitcoin line of credit?
You can open a bitcoin line of credit directly in the Shakepay app. If you’re eligible, you’ll see the option to start the flow.
The process is simple and guided step by step. You’ll be able to review your pledged collateral, credit limit, available credit, APR, and terms before confirming.
Is there a credit check?
No, there is no credit check.
Your line of credit is secured by your bitcoin collateral, which means we don’t rely on your credit history to approve your application.
How long does it take to access funds?
Once your line of credit is open, you can draw from your available credit. Funds you borrow are deposited into your Shakepay cash account.
This means you can access and use borrowed funds right away, without waiting for bank transfers or additional processing time.
What is Loan-to-Value (LTV)?
Loan-to-Value (LTV) is the ratio between your outstanding balance and the value of your bitcoin collateral, both measured in Canadian dollars (CAD).
For example, if you borrow $5,000 and pledge $10,000 worth of bitcoin as collateral, your LTV is 50%.
Your LTV can change over time for two reasons:
The price of bitcoin can go up or down
Your outstanding balance can change as you draw funds, interest accrues, or you make repayments
Because of this, it’s important to keep an eye on your LTV, as it helps determine the health of your line of credit and whether any action may be required.
What happens if the price of Bitcoin changes, and when could a margin call or liquidation happen?
The value of your bitcoin collateral changes with the market price, which affects your Loan-to-Value (LTV).
If the price of bitcoin goes down, the value of your collateral decreases and your LTV increases. As your LTV rises, your line of credit moves closer to important risk thresholds. If your LTV reaches the margin call threshold, we’ll notify you in the app and by email that action is required. You can usually restore your LTV by adding more bitcoin as collateral or repaying part of your outstanding balance.
If the price of bitcoin goes up, the value of your collateral increases and your LTV decreases. A lower LTV improves the overall health of your line of credit and may allow you to withdraw eligible collateral or access additional available credit.
If your LTV reaches the liquidation threshold, or if you don’t make a required payment by its due date, a portion of your bitcoin collateral may be automatically sold to reduce your outstanding balance and bring your LTV back to an acceptable level. A liquidation fee may apply based on the amount liquidated.
Before liquidation occurs, we’ll generally notify you (for example, through a margin call) so you have an opportunity to take action. If liquidation does occur, only the amount of bitcoin needed to reduce the risk may be sold. You keep ownership of any remaining bitcoin collateral, and your line of credit may remain open if it is returned to good standing.
Can I repay what I borrow early?
Yes, you can repay what you borrow at any time with no early repayment penalties.
Because the line of credit is open-ended, there is no fixed term. You can repay part or all of your outstanding balance whenever it works best for you.
How do I make repayments?
You can make repayments 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. Once the funds are available, you can complete your repayment in the app. Required interest payments may also be collected automatically from your Shakepay cash account.
Can I borrow more than once?
Yes. Unlike a one-time loan, a line of credit can be used more than once.
You can draw additional funds from your available credit as long as your line of credit remains eligible and your LTV stays within the required limits. You can only have one active bitcoin line of credit at a time.
Where is my bitcoin stored while my line of credit is open?
Your bitcoin collateral is held with regulated, institutional-grade custodians in segregated wallets and offline (cold) storage while your line of credit is open. It is not pooled with other customers’ assets.
We use custody infrastructure designed for digital assets, along with strict access controls, continuous monitoring, and regular system reviews to help protect against unauthorized activity. While no system is completely risk-free, our custodians are subject to rigorous security standards and regulatory oversight.
Your bitcoin is used only as collateral. When eligible, you may be able to withdraw excess collateral. When you close your line of credit, any remaining collateral is released back to you.
Does Shakepay use my collateral (rehypothecation)?
No, Shakepay does not rehypothecate your collateral.
Your bitcoin remains yours while your line of credit is open. It is not lent out, reused, or used for any other purpose.
Your collateral is held securely and used only to support your line of credit. When your line of credit is closed, your remaining bitcoin collateral is released back to you.
How do I close my line of credit?
You can close your line of credit at any time by repaying the full outstanding balance, including any accrued interest and applicable fees.
Once your balance reaches $0 and you close the line of credit, your remaining bitcoin collateral will be unlocked and returned to you.
There are no early repayment penalties for closing your line of credit.
Is this product regulated?
Yes. The bitcoin line of credit is 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.