Custody & Control
Borrow is designed to give users a clear and predictable custody experience.
You use a self-custodial wallet, approve each required action, and retain visibility and control throughout the borrowing process.
Self-custodial wallet
When you sign up with your email, a self-custodial wallet is created for you on Sats Terminal.
No KYC is required to create an account
No passwords or seed phrases to manage
Your assets are held in your own wallet
Borrow cannot move funds without your approval
This wallet holds your BTC, stablecoins, and any other supported assets used during the loan process.
Email-based authentication
Borrow uses simple, passwordless authentication:
Enter your email
Receive a one-time verification code
Enter the code to sign in
Approvals & permissions
Some steps in the loan process require Borrow to perform specific actions on your behalf. Before these actions occur, you will be asked to approve the required permissions.
Permissions are limited to the operations needed for your selected loan
Borrow cannot execute transactions without your explicit approval
You can review and manage permissions from your wallet interface
Borrow only executes the actions you explicitly approve.
Custody during the loan
The custody of your BTC collateral depends on the lender you choose:
Non-custodial lenders
Collateral is supplied to a smart-contract-based protocol. These flows follow on-chain logic and do not rely on a centralized custodian.
Custodial lenders
Some lenders operate custodially. In these cases, your collateral is held by the lender as part of the loan agreement.
Borrow clearly indicates the lender type so you can make an informed decision before proceeding.
Visibility and control
Throughout the borrowing journey:
You can track the status of each step
No actions occur without your approval
You maintain control over your wallet and all non-collateral assets
You can repay or manage your loan according to the lender’s terms
This structure ensures that you always understand how your assets are handled and what permissions are being used at each stage of the borrowing process.
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