Last updated: 5 May 2026
Read this carefully
Borrowing against Bitcoin involves material financial risks, including the risk of losing some or all of your Bitcoin collateral. You should read this statement in full and only use the Bitmonie platform if you understand and accept these risks.
This statement is not exhaustive. It highlights the main risks but does not describe every risk that might arise. You are responsible for assessing whether borrowing against your Bitcoin is appropriate for your circumstances. If in doubt, consult an independent financial advisor.
Price-volatility risk
Bitcoin’s price is highly volatile. Sharp drops in the BTC/NGN exchange rate increase your loan-to-value ratio and may trigger a margin call or liquidation.
Bitmonie operates with a 60% loan-to-value (LTV) ratio at origination. The remaining 40% is your safety buffer. If Bitcoin’s price falls far enough that this buffer is exhausted, we may liquidate your collateral without further notice.
Example
If you borrow ₦600,000 against Bitcoin worth ₦1,000,000 at origination:
- Your starting LTV is 60%.
- If Bitcoin falls 30% in value, your collateral is worth ₦700,000 and your LTV climbs to ~86%.
- A further drop pushes you toward our liquidation threshold.
You should monitor your loan and be prepared to top up collateral or repay part of the loan promptly.
Liquidation risk
If your loan-to-value ratio rises above the contractual threshold, we may:
- Issue a margin call requiring you to top up collateral or partially repay the loan within a stated time.
- Partially or fully liquidate your Bitcoin collateral if the margin call is not met or if market conditions deteriorate rapidly.
Liquidations may occur:
- At a price lower than the prevailing market price, due to slippage.
- Outside business hours, including weekends and public holidays.
- Without further notice in fast-moving markets.
Once liquidated, your Bitcoin is gone. Even if the price subsequently recovers, you will not get your Bitcoin back.
Custody risk
Your Bitcoin is held by a third-party custodian on our behalf during the life of the loan. Custody arrangements involve their own risks, including:
- Operational failure or insolvency of the custodian.
- Cybersecurity incidents affecting the custodian’s systems.
- Loss of private keys.
We select custodians with strong security and insurance practices, but we cannot eliminate these risks.
Regulatory risk
The legal and regulatory framework for Bitcoin and digital-asset lending in Nigeria is evolving. Future changes to laws, regulations, or central-bank policy may:
- Restrict or prohibit certain activities.
- Require us to suspend services, freeze accounts, or share information with authorities.
- Affect the value or transferability of Bitcoin.
By using the platform, you accept these regulatory uncertainties.
Operational and technology risk
The platform relies on internet connectivity, third-party infrastructure, and the broader Bitcoin network. Outages, bugs, or attacks may delay loan origination, disbursement, repayment, or collateral release. We use reasonable measures to maintain availability but cannot guarantee uninterrupted service.
Tax risk
Bitcoin transactions, liquidations, and loan-related events may have tax consequences. Tax treatment depends on your individual circumstances and may change over time. Bitmonie does not provide tax advice. Consult a qualified tax professional.
No advice
Bitmonie does not provide financial, investment, legal, or tax advice. Information on the platform is general in nature and does not take your personal circumstances into account. You alone are responsible for the decision to borrow against your Bitcoin.
Acknowledgement
By taking a loan on Bitmonie, you confirm that you have read, understood, and accepted the risks set out in this Risk Disclosure Statement and in the related Terms of Use and Disclaimers.