How Swapit works
Three independent parties, one clear set of obligations, and collateral that never leaves segregated custody.
Overview
Your loan in 4 steps
- 1
Create loan request
Choose your collateral (BTC, ETH, stablecoins) and desired loan amount.
- 2
Send collateral
Transfer your crypto to our segregated custody account.
- 3
Receive fiat
Your loan is approved and funded within 2 days.
- 4
Repay & recover
Repay loan plus interest. Collateral returns to you in full.
Structure
The tri-party structure
Borrower owes Swapit. Swapit owes the funder. The custodian owes everyone safe custody.
Borrower
- Holds the crypto asset
- Pledges collateral to the custodian
- Receives a fiat loan from Swapit
- Repays interest and principal
Swapit — lender of record
- Evaluates borrower and collateral
- Disburses fiat loans
- Earns interest spread and origination fees
- Manages margin calls and liquidations
- Never holds collateral directly
Custodian — independent, MiCA-licensed
- Holds collateral in segregated accounts
- Custody only, no ownership transfer
- Executes liquidation instructions
- Never lends out or re-uses collateral
Funder — capital provider
- Provides capital to Swapit
- Earns interest on deployed capital
- Receives monthly statements
- Receives principal at loan maturity
Risk management
Margin calls and liquidation, step by step
Real-time monitoring
Every loan is tracked 24/7 with aggregated, outlier-filtered price feeds. Warnings begin around 75% LTV.
Margin call at ~80% LTV
Email and SMS alerts, a red dashboard status and a countdown. Top up collateral, repay part of the loan, or close it early.
Grace period of 6–24 hours
If LTV falls back below the threshold, the margin call closes automatically and nothing else happens.
Liquidation waterfall
If the grace period expires, collateral is sold at the best available price. Proceeds pay principal, then interest, then fees. Any surplus returns to the borrower.
FAQ
Mechanics, answered
Still have questions?
Our team will walk you through the structure end to end.
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