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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?​

Your limits depend on your account verification tier. The current limits for your tier are always shown on the platform under your account settings. As a guide:

  • ZERO - account not yet verified; you can browse the platform but cannot borrow or invest.
  • BASIC - EUR 15,000 per transaction and EUR 30,000 in total.
  • INTERMEDIATE - a monthly limit and a higher total limit (currently EUR 50,000 per month and EUR 150,000 in total).
  • PRO - custom limits based on your borrowing and investing needs.

Limits are counted in EUR equivalent across all your open loans, investments and pending requests combined.

What is the minimum amount I can borrow?​

The minimum amount depends on the currency and is shown on the platform when you create a loan request (for EUR it is currently in the range of several hundred euros).

What loan periods are available?​

You can choose a loan period of 3, 6, 12, 18 or 24 months.

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 at a fixed interest rate without waiting for an investor match. Once you submit the request, you proceed directly to lock your Bitcoin. Funds are disbursed after your collateral is locked, to your Firefish Wallet (EUR and CZK loans) or to your bank account or stablecoin address (other currencies). Instant loans are provided by a dedicated loan provider and may be limited to certain currencies, amounts and loan periods.
  • OTC Loan: For large loan amounts, you can submit an OTC request and an account manager will contact you to arrange the terms.

How much does Firefish charge for the service?​

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

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

What currencies does Firefish support?​

Fiat: EUR, CZK, CHF, PLN. Stablecoins: USDC, USDT (Ethereum network).

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

Can I borrow stablecoins instead of banking money?​

Along with fiat currencies (EUR, CZK, CHF, PLN) you can also borrow USDC or USDT stablecoins on the Ethereum network. See the Stablecoins FAQ for details.

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 requests, 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.