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/perpetual-income
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 most up to date eligibility here
We are currently able to support loans to individuals in 40 U.S. states and territories: AK, AZ, AR, CO, CT, DC, FL, GA, HI, ID, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MO, MT, NE, NH, NJ, NM, NY, NC, OH, OK, OR, PA, PR, SC, TN, UT, VA, WV, WI, WY and are working to support the remainder.
We also support loans to businesses in most US states and in most countries globally.
US States - (AK, AL, AR, AZ, CO, CT, DE, FL, GA, IA, ID, IL, IN, KS, KY, MA, MD, ME, MI, MN, MO, MS, NC, NE, NH, NJ, NY, OH, OK, OR, PA, PR, SC, TN, TX, UT, VA, WA, WI, WV, WY)
International jurisdictions - please reach out to support to find out if your country is supported.
If you would like to use Arch but don’t see your state/country supported, please email us at [email protected].
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?
Perpetual Income is Arch’s fully-managed, long-term borrowing program designed for clients who want to turn their Bitcoin into a permanent, predictable, and tax-efficient source of cash flow—without selling and without the hassle of actively managing a loan.
Feature | Perpetual Income | Standard Arch Loan |
Borrowing Purpose | Long-term / indefinite borrowing | Short- to medium-term borrowing |
LTV | Very low (usually 10–30% starting LTV, although up to 50% is allowed) to reduce margin call risk and provide long runway | Higher (up to 60%) |
Payments | No monthly payments — interest is reserved at the start and rolled over annually | Monthly interest payments required |
Management Style | “Set and forget” — no ongoing active management needed | Active monitoring required to manage LTV and payments |
Structure | Annual disbursement of your chosen cash amount + annual rollover | One-time disbursement, fixed term |
Margin Call Sensitivity | Low due to conservative LTV | Higher due to more aggressive LTV |
Target Client | Perpetual borrowers (retirement income, long-term cash flow) | Clients with a defined short-term liquidity need |
In short:
No monthly payments — interest is capitalized and rolled over annually
Lower LTV — typically 10-30%, greatly reducing margin call risk
Perpetual structure — runs indefinitely for long-term cash flow
Is Perpetual Income right for retirement planning or short-term borrowing
Perpetual Income is designed for long-term, ongoing borrowing — ideal for retirement income strategies or situations where you want predictable annual cash flow without selling your Bitcoin.
If you’re looking for short-term financing or a fixed-term loan, our standard Bitcoin-backed loan product is likely a better fit.
What’s the interest rate and fee structure?
Currently 11% interest, but it may vary from year to year — and is most likely to decrease over time. A one-time origination fee of 2% is charged at the start of the structure. If the structure is open for 10 years, that one-time fee effectively works out to just 0.2% per year.
Lower rates may be available for higher sizes.
Is there a new origination fee each year?
No. The origination fee of 2% is only charged once, at the start of the structure. If the structure is open for 10 years, that one-time fee effectively works out to just 0.2% per year.
What Loan-to-Value (LTV) can I take?
Generally 10–30%, but we allow up to 50%.
What is the minimum Bitcoin deposit required?
Currently, the minimum deposit is 1 BTC.
Are there monthly payments?
No. Instead of paying monthly, the annual interest is reserved upfront and added to your loan balance automatically. This means you keep your full cash disbursement each year without having to make any ongoing payments.
How quickly can I get funded?
Same-day or next-day subject to bank processing times, after collateral is received.
Is there a credit check?
No.
How is my Bitcoin collateral stored?
Your Bitcoin is stored with Anchorage Digital, a federally chartered U.S. bank and regulated custodian. Assets are held in bankruptcy-remote trusts, fully insured against theft or loss, and is never rehypothecated.
What happens if Bitcoin's price drops?
If Bitcoin’s price falls, your loan-to-value (LTV) ratio will rise. Because Perpetual Income starts at a very low LTV, you have a large safety buffer. If your LTV reaches the margin call threshold, you’ll be notified and can add collateral or repay part of the loan to bring it back down.
How do margin calls and liquidations work with Perpetual Income?
If your LTV reaches 70%, a margin call is triggered and you have 24 hours to add collateral or repay part of the loan. This period can be extended upon request.
Given Perpetual Income’s low starting LTV, this is highly unlikely unless there is a severe Bitcoin price drop. At 80% LTV, there is a partial liquidation whereby some of your BTC will be sold to reduce the LTV back to the max starting LTV of 50%.
Can I add more collateral if needed?
Yes, you can add collateral at any time to reduce your LTV or to increase your income amount.
Are there any restrictions on how I use the loan proceeds?
No. Funds can be used for any purpose.
Can I repay early to end the perpetual income generation without penalties?
Yes. There are no prepayment penalties.
What happens if Bitcoin appreciates?
You can withdraw excess collateral up to 50% LTV, take out excess cash as a one-time disbursement or increase your annual tax-free income amount.
Where can I find a calculator to estimate my tax-free income?
You can use our public Perpetual Income calculator at archlending.com/perpetual-income
Look for the FCF (Free Cash Flow) column on the table to see your tax-free income each year.
Can I make additional deposits to increase my income generating capacity?
Yes.
What happens if I want to increase or decrease my tax-free income amount later?
You can adjust the annual amount at any time based on your needs and market conditions. You can also withdraw excess cash up to 50% LTV at any given time as a one-time disbursement.
How is interest charged and paid if there are no monthly payments?
Interest is borrowed upfront each year and added to the loan balance automatically by Arch.
What happens if I default or fail to meet a margin call?
Your collateral will be partially liquidated at 80% or at the end of the margin call period to bring the LTV back to 50%.
Can I change my cash amount?
Yes, annually. You can also extract one time cash withdrawals from your BTC.
What happens if the 80% partial liquidation is hit?
Collateral is partially liquidated to restore maximum start LTV (50%).
What are the tax implications of using Perpetual Income?
Loan proceeds are generally not taxable, but you should consult your own tax advisor. Arch does not provide tax advice.
Is my collateral insured?
Yes, all Bitcoin is stored in cold storage at federally qualified crypto custodian bank Anchorage Digital which has associated insurance coverage via Lloyds of London.
Can I see a live statement or dashboard tracking my loan and collateral?
Yes, via your Arch client dashboard in real time.
What happens to my collateral if I repay the underlying loan in full?
Once the outstanding loan balance is fully repaid — either by paying in cash or by using a portion of your collateral to cover the amount — the remaining collateral is returned to you in full, usually within 24 hours.
Is there a limit on how long I can keep this running?
No, you can keep this running in perpetuity.
Can Arch sell some Bitcoin to pay off and end the loan?
Yes, Arch can do this at any time. Send an email to [email protected] to request this.
How do I start the onboarding process? How long does it take?
Apply via our web dashboard - app.archlending.com. Once you have configured your loan, signed your agreement and collateral is received, you will be funded same/next day.
How does Arch make money?
Arch earns revenue through the interest and origination fees charged on loans. Unlike many other lenders, Arch does not rehypothecate or lend out your Bitcoin—we simply charge for the capital we provide.
Do I or Arch earn yield on my Bitcoin?
No. Your Bitcoin is held in secure custody with Anchorage Digital and does not generate yield. Arch does not earn yield on it either. The value of your Bitcoin remains yours—it is simply collateral for your loan.
What happens if I die? Can I add my next of Kin to Perpetual Income?
If you pass away, your estate or designated beneficiaries can work with Arch to settle or refinance the loan. Because the Bitcoin is held in segregated custody, your heirs retain rights to the collateral once obligations are satisfied. You can request we add language for this in the loan agreement.
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.