Question 1

What is Coinedge?

Accepted Answer

Coinedge is a non-custodial Bitcoin-backed loan marketplace. We connect borrowers who want USDC liquidity with independent lenders who want to fund overcollateralized BTC-secured loans. Coinedge is not the lender — all lending decisions and rate-setting come from independent participating lenders.

Question 2

How does a BTC-backed loan work?

Accepted Answer

You submit a loan request for a USDC amount with your preferred term. Independent lenders review your request and propose their own interest rate. If you accept a proposal, you deposit BTC into a 3-key multisig vault as collateral. The lender then sends USDC to your wallet. You repay principal plus interest in USDC, and on full repayment, all three key holders co-sign the release of your BTC.

Question 3

What is a multisig vault?

Accepted Answer

A multisig vault is a Bitcoin address that requires multiple private key signatures to authorize any transaction. Coinedge uses 3-key multisig — the borrower, the lender, and Coinedge each hold one key. All three signatures are required to move funds. No single party can act alone.

Question 4

What is LTV?

Accepted Answer

LTV stands for Loan-to-Value ratio. It represents the loan amount as a percentage of the BTC collateral value. For example, a $6,000 USDC loan backed by BTC worth $10,000 is a 60% LTV. As Bitcoin's price changes, so does your LTV. Approaching pre-agreed LTV thresholds may require additional collateral or early repayment.

Question 5

What is overcollateralization?

Accepted Answer

Overcollateralization means the value of your BTC collateral is always greater than the USDC you borrow — for example, locking $10,000 of Bitcoin to borrow $5,000. This buffer protects lenders against Bitcoin's price volatility and is why no credit check is needed: the collateral itself secures the loan.

Question 6

Can you borrow against Bitcoin without selling it?

Accepted Answer

Yes — that is exactly what Coinedge enables. You lock your BTC as collateral in a non-custodial multisig vault and receive USDC liquidity. You keep your Bitcoin exposure and get it back in full when you repay, so you never have to sell or trigger a taxable disposal just to access cash.

Question 7

How is a Bitcoin-backed loan different from a bank loan?

Accepted Answer

A bank loan relies on your credit score, income, and lengthy underwriting, and the bank decides whether to approve you. A Bitcoin-backed loan on Coinedge is secured entirely by your BTC collateral — there is no credit check, no income verification, and no bank. Independent lenders compete to fund your request, and your Bitcoin is held in a non-custodial multisig vault rather than by an institution.

Question 8

How long does it take to get a Bitcoin-backed loan?

Accepted Answer

Timing depends on how quickly lenders respond to your request and how fast your BTC collateral confirms on-chain. Once you accept a lender's proposed terms and your collateral deposit is confirmed on the Bitcoin blockchain, the lender sends USDC directly to your wallet — there is no multi-day underwriting or credit review.

Question 9

Do I need a credit check to borrow?

Accepted Answer

No. Bitcoin is your credit on Coinedge. No credit score, income verification, employment history, or paperwork is required. Your BTC collateral is the only underwriting factor.

Question 10

What happens to my Bitcoin while the loan is active?

Accepted Answer

Your Bitcoin is locked in a 3-key multisig vault on the Bitcoin blockchain. It is never re-lent, rehypothecated, or used in any other way. Coinedge cannot move it without your signature and the lender's signature.

Question 11

How long do I have to accept or decline a lender's terms?

Accepted Answer

You have 24 hours from when a lender proposes terms to accept or decline. After 24 hours, the proposal expires. You can receive proposals from multiple lenders simultaneously.

Question 12

What happens if Bitcoin's price drops significantly?

Accepted Answer

If BTC's price falls such that your LTV approaches the pre-agreed threshold, Coinedge will notify you and the lender. You may be required to add BTC collateral or make an early partial repayment. The specific terms are agreed at loan origination and described in your loan agreement.

Question 13

Can I repay my Bitcoin-backed loan early?

Accepted Answer

Early repayment terms are set by the individual lender and agreed at origination. Many loans allow you to repay principal plus accrued interest ahead of schedule, after which all three key holders co-sign the release of your BTC. Check the specific terms in your loan agreement before accepting a proposal.

Question 14

What is the minimum loan amount?

Accepted Answer

Minimum loan amounts are set by individual lenders who review your request. There is no platform-wide minimum set by Coinedge. Lenders may choose not to fund very small amounts based on their own preferences.

Question 15

Is borrowing against Bitcoin taxable?

Accepted Answer

In many jurisdictions, taking a loan against your Bitcoin is not itself a taxable event because you are not selling the asset — but tax treatment varies by country and individual circumstances. Coinedge does not provide tax advice. Consult a licensed tax professional about your specific situation.

Question 16

Am I lending to Coinedge or to borrowers?

Accepted Answer

You are lending directly to borrowers. Coinedge is a marketplace and collateral agent — we are not the counterparty to any loan. You evaluate borrower requests and propose your own terms. All lending decisions are yours.

Question 17

How do I earn interest?

Accepted Answer

You propose an annual percentage rate (APR) when responding to a borrower's request. If the borrower accepts your terms, the agreed interest accrues over the loan term and is repaid in USDC by the borrower at maturity.

Question 18

Who sets the interest rate?

Accepted Answer

You do. Coinedge does not set, recommend, or influence pricing. Each lender independently proposes their own APR based on their assessment of the request.

Question 19

What happens if a borrower defaults?

Accepted Answer

If a borrower fails to repay, Coinedge as the coordination key holder initiates the pre-agreed liquidation workflow. BTC collateral is liquidated and proceeds are distributed per the terms agreed at origination. Coinedge does not guarantee repayment — lending carries risk.

Question 20

How do I fund a loan?

Accepted Answer

After a borrower accepts your terms and BTC collateral is confirmed on-chain, you transfer the agreed USDC amount to the borrower's wallet. Coinedge does not receive or hold any loan funds.

Question 21

Is my Bitcoin safe with Coinedge?

Accepted Answer

Coinedge never takes custody of your Bitcoin. It is secured in a 3-key multisig vault that requires your signature, the lender's signature, and Coinedge's coordination key to move funds. No single party can access the collateral alone.

Question 22

Can Coinedge access my Bitcoin?

Accepted Answer

No. Coinedge holds one of three keys and can only act in coordination with the other two parties. Moving funds requires all three signatures. There is no override or emergency access.

Question 23

How is collateral verified?

Accepted Answer

Collateral deposits are confirmed on the Bitcoin blockchain before any USDC is released. Anyone can verify the multisig address and balance on the public blockchain at any time.

Question 24

What currencies are used?

Accepted Answer

BTC is used as collateral (held on the Bitcoin blockchain). USDC (USD Coin, a stablecoin pegged 1:1 to USD) is the loan currency — borrowers request USDC, lenders fund in USDC, and repayment is made in USDC.

Question 25

What does non-custodial actually mean?

Accepted Answer

Non-custodial means no single party — including Coinedge — ever holds your Bitcoin alone. Your collateral lives in a 3-key multisig vault on the Bitcoin blockchain, and any movement requires multiple independent signatures. This is the core difference from custodial lenders like the now-collapsed BlockFi or Celsius, where the platform held your coins outright.

Question 26

Is Coinedge a licensed lender?

Accepted Answer

No. Coinedge is a marketplace and collateral management platform — not a lender. Individual lenders on the platform may be subject to their own licensing requirements depending on jurisdiction. Coinedge does not provide lending, investment, or legal advice.

Question 27

Does Coinedge provide investment advice?

Accepted Answer

No. Coinedge does not provide investment, financial, or legal advice. Nothing on this platform should be construed as a recommendation to borrow, lend, or invest. Consult a licensed professional before making financial decisions.

Question 28

Is Coinedge a bank?

Accepted Answer

No. Coinedge is not a bank, FDIC-insured institution, or regulated financial institution. Funds on this platform are not FDIC-insured or protected by any government deposit insurance.

Question 29

Is crypto lending regulated in the US?

Accepted Answer

Crypto lending sits in an evolving regulatory landscape that varies by state and is subject to federal oversight. Coinedge operates as a non-custodial marketplace and collateral agent rather than a lender, but participants remain responsible for their own compliance. Nothing here is legal advice — consult a qualified attorney about your jurisdiction.

Question 30

Is USDC safe to borrow and repay in?

Accepted Answer

USDC is a US-dollar stablecoin issued by regulated entities and designed to hold a 1:1 peg to the dollar, backed by reserves. Like any stablecoin, it carries issuer and reserve risk and is not FDIC-insured. Coinedge uses USDC as the loan currency but does not issue it or guarantee its value — review the issuer's disclosures before participating.

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