I should have put hastags on this one, doing it here : This post perfectly summarizes how I feel about bitcoin-backed loans : "Bitcoin Backed Loans - One Strike and You’re Out!" https://www.thebitcoinway.com/articles/bitcoin-backed-loans Notably : - Volatility and Liquidation Risks - Counterparty Risks - Regulatory Risks - High Interest Rates and Collateral Requirements - Rehypothecation Risks - Tax Implications And I would add another risk : "The Great Taking", by David Webb : https://thegreattaking.com/ For those who are interested in reading the legalese, take a look at what Webb explains about UCC section 8 : https://mpalmer.heresy.is/webnotes/TheGreatTaking/Security-Entitlement.html and about Central Clearing Parties : https://mpalmer.heresy.is/webnotes/TheGreatTaking/Central-Clearing-Parties.html Essentially, even if the bitcoin itself is not rehypothecated, the shares of the shareholders of the custodian could be swept up in a mass Great Taking. Ultimate rug-pull. A 5D-rug-pull. #btc #bitcoin #loans #thegreattaking