Use Cases

Our Loan-Swap instruments can be used to fulfil many functions and solve many problems. The following are some of the major solutions our instruments solve for.

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Ways to use our instruments

Risk-adjusted Increased Short Exposure

Parties who would like to create or enhance their current Bitcoin short position with less associated risk. Loan-Swaps allow borrowers to increase their position size without drawing down their capital accounts.

To Meet Margin Requirements

If individuals have current Bitcoin short exposure and are asked to post additional collateral to prevent liquidation, Loan-Swap’s low-cost capital provides relief, reducing the probability of a margin call. F

Tax-free Bitcoin Allocation Hedge

Parties that currently have Bitcoin long exposure take value from using our instrument as a hedging tool. Loan-Swaps allow capital allocators a way to hedge their BTC portfolio risk without having to sell Bitcoin, avoiding the taxable event associated with a sale.

Access To Credit

Capital allocators who would like access to credit via a collateralized loan. Borrowers benefit from our instrument’s “borrow now, pay later” model, allowing parties not to worry about any principal & interest payments until the agreement has concluded.

Still unsure if our instruments fit into your portfolio?

Seeing as our innovative Loan-Swap instruments are a novel financial product, we recommend that you get as familiar as you can with our hedging tools. Contact us for case studies outlining how clients have benefited from our financial instruments.