Borrow
Borrow USDC against BTC or ETH at 0% APR. Your loan settles on the option expiry you choose — no liquidation along the way. The price of the loan is a cap on your upside, set when the loan opens.
Post BTC or ETH as collateral
See your quote: loan amount + cap level (the call strike). APR is 0%
Receive USDC. Your collateral is collared until maturity — floor bought, cap sold
Repay by the deadline. Get your collateral back
The cap is the cost. There is no interest. At origination a call is sold on your collateral — if the price finishes above the cap at maturity, that upside settles to the desk. Below the cap, every dollar of your collateral's move is yours. You know the exact trade-off before you sign.
What drives your cap level:
LTV
Borrow less against your collateral → higher cap, more upside kept
Term
Shorter term → cap closer to spot but reset sooner
Implied volatility
Richer vol → the call sells for more → better loan terms
No liquidation — Once funded, your position cannot be liquidated during the term, regardless of price. The floor is a put bought at origination, not a margin threshold.
Repay — Pay back the principal by the deadline. Collateral comes back (upside above the cap, if any, settles to the desk).
Default — Miss the deadline and the put plus your collateral settle the loan; remaining collateral is sold via Dutch auction in Deals. Set a calendar reminder.
WBTC
On listed option expiries — granular, from days to months out
WETH
On listed option expiries — granular, from days to months out
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