Overview
Perpetual Income is Arch's fully-managed, long-term Bitcoin-backed borrowing program that allows you to generate permanent, predictable, and tax-efficient cash flow—without selling your Bitcoin or actively managing a loan. It works by maintaining a loan against your BTC collateral and strategically increasing the loan amount over time so you can keep receiving payouts year after year.
You retain full Bitcoin ownership at all times—your assets are never rehypothecated.
Unlike a standard loan, Perpetual Income:
Starts at a low LTV (10–30%, although you can start up to 50%), reducing margin call risk and allowing you to continue withdrawing more against the same amount of collateral in perpetuity
Requires no monthly payments — interest is capitalized and rolled over annually
Can run perpetually for ongoing cash flow
Is fully managed by Arch — “set and forget”
How It Works
Deposit BTC collateral into your Arch Lending account (minimum 1 BTC)
Select your annual cash amount (up to your LTV limit)
Loan proceeds are sent to your bank account or stablecoin wallet
Interest is withheld upfront and added to the balance — no monthly payments
Each year:
We roll over the loan balance
Send you the next year’s cash
Add that year’s interest to the balance
You can adjust your annual cash amount, add/remove collateral, or exit the program any year
Example (First 2 Years)
Assumptions
Collateral posted: 10 BTC
BTC price: $100,000 (collateral value: $1,000,000)
Starting LTV: 15%
Annual cash: $150,000
Interest: 11%
Origination fee (Year 1 only): 2%
Year 1
Deposit 10 BTC
Loan amount: $150,000 (15% LTV)
Borrow 1st year’s interest ($16,500) upfront
Deduct 2% origination fee ($3,000)
Receive $147,000 cash
End of year balance: $166,500
Year 2
Roll forward $166,500 balance
Take another $150,000 cash
Borrow interest on $316,500 balance ($34,315)
Receive $150,000 cash
End of year balance: $350,815
LTV is still ~35% with no BTC price change
👉 Try out the calculator on archlending.com/velocity
Key Features & Benefits
Predictability — receive predictable tax-free income each year
Hands-off management – Arch handles LTV monitoring and loan upsizing
No monthly payments — interest capitalized annually
Keep your Bitcoin – No selling, extract liquidity from your Bitcoin
Tax efficiency — loans are generally not taxable events
Flexibility — adjust cash amount annually
Lower LTV — margin call risk significantly reduced
Perpetual structure — can run indefinitely
No rehypothecation — BTC held securely with Anchorage Digital and is never lent out
White-glove support – Direct access to our service team
Eligibility & Requirements
Minimum deposit: 1 BTC
Jurisdictions: All eligible Arch loan customers, see updated eligibility here
Custody: Bitcoin stored at qualified custodian, Anchorage Digital (insured, bankruptcy-remote)
Getting Started
Sign up at archlending.com
Click on Perpetual Income in the left side navigation bar
Choose your terms
Complete identity verification (KYC for individuals / KYB for businesses and trusts)
Sign docs and deposit BTC collateral
Receive your tax-free income
FAQs
What is the Perpetual Income product?
It’s a Bitcoin-backed loan strategy designed to give you recurring cash payouts without selling your BTC. Arch Lending manages the loan and upsizing process so you can generate ongoing income.
What is Perpetual Income, and how is it different from a standard Bitcoin-backed loan?
Long-term, indefinite borrowing vs. short-term fixed loans
Starts at 10–30% LTV (although you can access up to 50%) vs. up to 60% on standard loans
No monthly payments — interest rolled annually
Annual disbursements vs. one-time disbursement
Low margin call sensitivity
Is it right for retirement planning or short-term borrowing?
Best suited for retirement income and long-term cash flow. For short-term needs, use our standard loan.
What’s the interest rate and fees?
Currently 11% interest, 2% one-time origination fee (Year 1 only). Lower rates may be available for higher sizes.
What LTV can I take?
Generally 10–30%, but we allow up to 50%.
Are there monthly payments?
No. Annual interest is borrowed upfront and added to your balance.
How quickly can I get funded?
Same-day or next-day after collateral receipt.
Is there a credit check?
No.
How is my BTC stored?
With federally chartered qualified custodian Anchorage Digital, insured, bankruptcy-remote, never rehypothecated.
What happens if BTC price drops?
Your LTV increases. Low starting LTV gives a buffer. Margin call at 70% LTV with 24 hours to respond.
Can I add collateral?
Yes, anytime.
Any restrictions on loan use?
No.
Early repayment?
Yes, with no penalties.
If BTC appreciates?
You can withdraw collateral or increase annual cash.
Where is the calculator?
Can I make additional deposits?
Yes.
Can I change my cash amount?
Yes, annually. You can also extract one time cash withdrawals from your BTC.
If I default?
Collateral is partially liquidated to restore maximum start LTV (50%).
Tax implications?
Loans are generally not taxable; consult a tax advisor.
Collateral insurance?
Yes, via Anchorage.
Can I see my loan status?
Yes, via Arch client dashboard.
Limit on how long I can keep this running?
No.
If I repay in full?
Your BTC is returned.
Contact & Support
If you have further questions, contact our support team via the chat widget or email [email protected].
You can also call our client services line toll-free at +1 855-272-4670.