Taking Your First Loan

Step-by-step guidance for borrowing stablecoins using your Bitcoin as collateral, fully automated and non-custodial.

This guide walks you through the steps of borrowing stablecoins using bitcoin as collateral. Each stage is designed to be clear and straightforward, with Borrow handling the technical work in the background.

1

Set your loan preferences

Start by choosing how you want to structure your loan:

• enter the amount of BTC you want to use as collateral,

• or enter the amount of stablecoins you want to borrow.

Borrow will calculate the corresponding Loan-to-Value (LTV) and show how much collateral is required.

You can adjust the amounts until the LTV matches your preference.

This helps you understand the trade-off between collateral, borrowing amount, and risk before moving forward.

2

Review the available loan offer

After you set your loan preferences, Borrow checks supported lending providers and displays all available loans based on the terms.

Information includes:

• the estimated interest rate

• any fees associated with the loan

• Max LTV

• liquidation price

• collateral details

This allows you to review the terms and select the option that best suits your needs before moving forward.

3

Deposit your Bitcoin

Borrow generates a unique Bitcoin address for your collateral deposit. You send BTC to this address from your own wallet.

After the transaction is submitted, Borrow waits for the required confirmations on the Bitcoin network before continuing. You can track the deposit status in real time while it completes.

Your BTC remains in a self-custodial flow until it is supplied to the lender you select. If you choose a custodial lender, the collateral will be held by that provider as part of the loan.

4

Borrow prepares the collateral

After your BTC deposit is confirmed, Borrow handles the steps required to prepare the collateral for the lender you select. This may involve moving the BTC to the network used by that lender and supplying it as collateral on your behalf.

Throughout this process:

• You approve the actions before they occur

• Borrow only performs the steps needed to complete the loan

• You can track the progress directly in the app

If you choose a custodial lender, the collateral will be held by that provider as part of the loan.

For non-custodial lenders, the collateral remains in a self-custodial flow until supplied to the protocol.

5

Receive your stablecoins

Once the collateral has been supplied to the lending provider, the borrowed stablecoins are sent to the user’s self-custodial wallet.

From there, users can:

• hold their stablecoins,

• send them to another wallet and/or off-ramp to fiat, or

• use them within supported products on the platform.