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Self-Repaying Loan Strategy

Self-Repaying Loan Strategy

Leverage Bitcoin appreciation to pay your loan

The self-repaying loan concept is based on the idea that if Bitcoin appreciates enough, you can repay your loan while ending up with more BTC value than you started with. The loan effectively 'pays itself' through the growth of your collateral.

How It Works

Take a loan against your Bitcoin at a conservative LTV. If Bitcoin's price rises significantly, the increased value of your collateral exceeds the loan amount plus interest. You can then repay the loan and pocket the difference.

Why People Choose This

•Potential to access 'free' liquidity if BTC appreciates
•Maintain full upside exposure to Bitcoin
•Can be more tax efficient than selling
•Leverage the power of Bitcoin's growth

Key Risks to Consider

This advanced strategy carries significant risks and requires careful planning

Liquidation Risk

Liquidation Risk

Collateral can be sold if your LTV gets too high.

Platform Risk

Platform Risk

Lending platforms may fail or restrict withdrawals.

Smart Contract Vulnerabilities

Smart Contract Vulnerabilities

Bugs or exploits in the code could put funds at risk.

Stablecoin Peg Risk

Stablecoin Peg Risk

The loan's stablecoin could lose its $1 peg.

Interest Accumulation

Interest Accumulation

Loan interest can compound over time.

Self-Repaying Loan Simulator

Model scenarios to see when a loan might 'pay itself'

Initial BTC amount

Loan-to-value %: 50%

Simulation mode

Regression testProjection

Start date

End date

Auto-repay if BTC price increases

Add more BTC if price drops

Reinvest profits

Run the simulation to see results

Frequently Asked Questions