The Vehicle

Prime Lending is a BTC-denominated credit facility extended to a single qualified mining operator through a ring-fenced program vehicle. The vehicle holds a first-lien security interest over pledged program assets, and payments settle in BTC on chain, which supports direct verification of transfers and controlled receipt flows. The illustrative reference facility below is used throughout this documentation to make the mechanics concrete. Actual terms are set per program.

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How the collateral is assessed

Prime Lending is a BTC-denominated loan, so the collateral package is valued in BTC to stay aligned with the loan. The package targets roughly 150% coverage of the loan amount and combines two kinds of collateral. Posted BTC. The borrower posts BTC collateral as part of the package, typically around 30% of principal. This BTC sits inside the lender’s recovery perimeter from origination. Assessed hardware and pledged assets. Pledged ASICs are not credited at full market value. They are assessed at a discount of roughly 30% to 50% to market before entering the package, so $1 million of ASICs supports about $500,000 to $700,000 of assessed collateral value. That assessed value is then denominated in BTC alongside the posted BTC. In the reference facility above, the roughly $3.68 million of opening eligible collateral is the assessed ASIC value of about $3.2 million plus the posted BTC of about $480,000. The $2.4 million loan against that base is the 65.2% opening LTV, or about 150% collateral coverage. The specific figures reflect the illustrative simulation used throughout this documentation.

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What you are funding

Lender principal funds the deployment of a specific mining fleet: ASIC procurement, fleet expansion, hosting, infrastructure, and power access. The program restricts proceeds from unrelated trading, yield seeking, rehypothecation, or repledging. Because the loan finances BTC-producing capacity, the primary scheduled repayment source is the mining production of the financed fleet itself.

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What you are earning

Interest is denominated in BTC and applied to BTC principal. Programs target 6 to 10% BTC APY, set at origination against borrower profile, collateral composition, hedging strategy, and market conditions. Realized yield has averaged 9% across active programs. The reference facility above illustrates a 10% annual coupon over a 24-month term, at the upper end of the range. Because the loan is BTC in and BTC out, the coupon increases the lender’s BTC balance and compounds on top of any price appreciation, rather than accruing in a currency that depreciates against BTC. Hedge economics and program charges are structured so that the yield is supported across the price cycle rather than only in a rising market.

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Tenor

Secured Loans run within the expected productive life of the fleet, which accounts for network growth, technological obsolescence, and hardware depreciation. The reference facility runs 24 months. Lines of Credit are available as revolving facilities with defined draw periods.

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How returns flow

Repayment can follow one of three structures, set at origination based on borrower profile:

1. An amortizing loan pays scheduled BTC principal and interest.
2. A block-reward-share structure directs an agreed percentage of mined BTC to repayment.
3. A coupon-plus-balloon structure pays periodic BTC interest and returns principal at maturity.

In all three, scheduled payments are made in BTC and flow to lenders through the program. Distributions of principal and interest are drawn from controlled mining receipts and, where applicable, realized hedge support. The mechanics of that controlled flow are described in Cash-Flow Control.

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Minimum participation