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General Borrowing

What is Firefish Borrow?​

Firefish Borrow enables borrowers to receive cash loans and use their Bitcoin as collateral to secure them.

Why would I borrow instead of selling my Bitcoin?​

Bitcoin holders may encounter situations where they need funds for investment opportunities or significant life events. Similarly, professionals with Bitcoin on their balance sheets might seek additional leverage, exposure, or a means to cover operational costs.

With a Firefish loan, individuals and organizations can retain ownership of their Bitcoin assets while unlocking the liquidity they require. By leveraging their Bitcoin holdings as collateral, they can secure a cash loan without having to sell their digital assets. This approach not only preserves their long-term investment strategy but also positions them to potentially benefit from future capital appreciation in the value of Bitcoin.

Furthermore, by retaining their Bitcoin, they can avoid capital gains tax implications.

What is the maximum amount I can borrow?​

Currently there are three account tiers available with the following limits:

  • BASIC - EUR 15,000 per transaction and EUR 30,000 in total, per user, for all active loans.
  • INTERMEDIATE - EUR 50,000 per month, and up to EUR 150,000 in total per user for all active deals.
  • PRO - custom limits based on your borrowing and investing needs.

We are working on introducing a tier for stablecoin deals.

What is the minimum amount I can borrow?​

The minimum amount is EUR 800 or the equivalent in other currencies.

What amount of Bitcoin do I need for a loan?​

In general, the ratio between your Bitcoin collateral and the amount due (amount + interest) of your loan is 2x.

For example, if you wish to borrow EUR 1000, for 1 year at 6% (amount due ⇒ 1000 + 6% = EUR 1060), you would need to lock Bitcoin collateral worth EUR 2120.

On top of that, you should consider the current blockchain network fees and Firefish origination fee of 1.5% (p.a) that will be deducted when transferring Bitcoin.

What is the difference between Standard and Instant loans?​

  • Standard Loan: You can choose all the loan parameters, including your preferred interest rate. Your loan request is then posted in the marketplace and sent to relevant investors for matching.
  • Instant Loan: Borrow cash immediately at a fixed interest rate, without the need to wait for an investor match. Once you submit the request, you will proceed to lock your Bitcoin, and the funds will be sent to your bank account instantly.

How much does Firefish charge for the service?​

An origination fee of 1.5% of the loan amount (p.a.) is applied to Borrowers.

The fee is automatically deducted from the Bitcoin collateral during the collateral locking process phase.

What currencies does Firefish support?​

Currently Czech koruna (CZK) and Euro (EUR).

Please, reach out if you are interested in other currencies.

Can I borrow stablecoins instead of banking money?​

Along with fiat currencies (EUR and CZK) you can also borrow USDC (Circle) stablecoins on Ethereum.

How are interest rates on Firefish loans determined?​

Interest rates on Firefish are driven by supply and demand from the platform users.

What if there are no investors for my loan request?​

Firefish always tries to find the best deal for all loan interest, however, at times there might be not enough liquidity (Investors) for a combination of currency, amount and tenor. In such case, Firefish lists your loan requests on the platform (Marketplace) or, occasionally, contacts particular investors to consider your request.

We are working actively on bringing additional sources of liquidity to the platform.