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Resources / Mechanics

Mechanics

Fixed-term loan vs revolving line of credit

Lump sum with a maturity date versus draw-and-repay flexibility. Different LTV attention and rate styles.

Fixed-term loan

You borrow a lump sum with a defined term and usually a fixed rate path. Best when you know the amount and timeline.

Revolving line of credit

You can draw and repay against the same collateral. Interest usually accrues only on the drawn amount. Rates are often variable.

Open-ended structure means you must watch LTV as both draws and Bitcoin price move.