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General FAQs
Updated today

General

Why do people take crypto-backed loans?

Getting a loan enables individuals to access cash they need for other purposes while being able to maintain ownership of their assets and benefit from continued appreciation. Additionally, it can be more tax efficient as selling may result in capital gains tax liabilities.

Common use cases include:

  • Tax mitigation strategies

  • Buying more crypto (leverage)

  • Debt consolidation

  • Alternative investments (such as real estate)

  • Lifestyle expenditure

Are there any restrictions on what I can do with the loan?

No, there are no restrictions.

Is Arch a bank?

No, Arch is not a bank. Arch is a financial services company that offers consumer and business loans.

How is Arch Compliant?

Arch’s business is legally compliant and regulatory first. We are currently able to support individuals in 31 U.S. states and territories (AK, AZ, AR, CO, CT, DC, FL, GA, IN, IA, KS, KY, ME, MD, MA, MO, NE, NH, NJ, NM, NY, NC, OK, OR, PA, PR, TN, UT, WV, WI, WY) and are working to support the remainder.

Additionally, we are currently able to support businesses in 39 U.S. states (AL, AK, AZ, AR, CO, CT, DE, FL, GA, ID, IL, IN, IA, KS, KY, ME, MD, MA, MN, MS, MO, NE, NH, NJ, NY, NC, OH, OK, OR, PA, PR, SC, TX, UT, VA, WA, WV, WI, WY) and are working to support the remainder.

If you would like to use Arch but don’t see your state/country supported, please email us at [email protected].

How does Arch store customer data?

Arch stores customer data in secure cloud databases. All sensitive data is encrypted at object (or column) level before being written to the database. Master encryption keys will be stored separately from the encrypted data. Access to the database is strictly gated by usernames, passwords, and 2-factor authentication. If you would like us to request/delete your account data, please reach out to us at [email protected].

Is Arch secure?

At Arch, security is always top of mind. Please check out our <Security Page> for how we secure and protect your financial data and assets.

Taking out a loan

How quickly do I get my loan

Loans are approved instantly and funded right away. For crypto-loans, if you choose a loan in stablecoin (USDC), the money should appear in your account within minutes. For all other situations where the loan is in fiat (USD), the money should appear in your bank account within hours if approved before 5 pm EST, or at the beginning of the next US business day if approved after 5 pm EST.

What currencies can I get a loan in

We currently disburse proceeds in either USD (fiat) or USDC (stablecoin).

What states are supported as an individual

Arch’s business is legally compliant and regulatory first. We are currently able to support individuals in 31 U.S. states and territories (AK, AZ, AR, CO, CT, DC, FL, GA, IN, IA, KS, KY, ME, MD, MA, MO, NE, NH, NJ, NM, NY, NC, OK, OR, PA, PR, TN, UT, WV, WI, WY) and are working to support the remainder.

What states are supported as a business

Additionally, we are currently able to support businesses in 39 U.S. states (AL, AK, AZ, AR, CO, CT, DE, FL, GA, ID, IL, IN, IA, KS, KY, ME, MD, MA, MN, MS, MO, NE, NH, NJ, NY, NC, OH, OK, OR, PA, PR, SC, TX, UT, VA, WA, WV, WI, WY) and are working to support the remainder.

Can I receive some collateral back if the value goes up

Yes, you can request a collateral return if the LTV is below the collateral return threshold. Typically this is 10% below the maximum starting LTV.

Is there a credit check? Will this loan affect my credit score?

There is no credit check and this loan will not affect your credit score, regardless of if you are or are not liquidated.

Loan terms

What collateral is accepted?

Currently, we have support for Bitcoin, Ethereum and Solana

What is the interest rate?

The interest rate is currently 14%

Is there an origination fee?

There is currently a 1.5% origination fee

Is there an early repayment fee

No, there is no early repayment fee

Are there any other fees?

The only other fee we may charge is in the event of a liquidation. This is currently 2%.

Can I refinance or rollover my loan?

Yes you are able to refinance your loan at any time, and at the end of the loan term, you are able to rollover your loan at the prevailing rates.

What is the minimum and maximum term length?

Currently, we offer loans for as little as 1 month and as long as 12 months. We selectively have the ability to extend terms to 18, or even 24 months. Get in touch with the team at [email protected] if you would like to explore this option.

What can I do if I don't see my desired collateral is supported?

We are always working to expand the supported list of cryptocurrencies. Please email the team at [email protected] with the specific cryptocurrency that you’d like to borrow against.

Security

Where does Arch store my assets?

We store your assets at our partner custodian Anchorage Digital, a federally chartered bank. Assets are stored in cold, insured wallets and are held 1:1. For more, see our security page.

Does Arch rehypothecate my assets?

We pride ourselves on never rehypothecating (trading or lending out) your assets. All assets are held 1:1 in cold, insured accounts at Anchorage Digital, a federally chartered bank and qualified crypto custodian.

Loan Health

When do I get margin called or liquidated?

Margin call and liquidation thresholds vary by asset. Currently, they are as follows:

BTC

  • Margin call at 70% LTV

  • Partial liquidation at 80% LTV

ETH

  • Margin call at 65% LTV

  • Partial liquidation at 75% LTV

SOL

  • Margin call at 55% LTV

  • Partial liquidation at 65% LTV

You can always view the thresholds on the loan terms page, and your loan dashboard.

Can I top up collateral at any time?

Yes, you can top up collateral at any point. Deposit addresses are shown on your loan dashboard.

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