How do CeFi loans work (e.g. Arch, Ledn)?
Review available offers
Borrow displays CeFi loan options with:
estimated interest rate
LTV
custody model
fees
lender details (e.g. Arch, Ledn)
Check offer
Instead of selecting the loan inside Borrow, you click Check offer.
Redirect to the lender’s website
You are taken to the official page of the selected CeFi lender (for example, Arch).
Complete the loan with the lender
From this point:
the lender manages onboarding and loan execution
custody of BTC is handled by the lender
loan terms follow the lender’s policies
Receive funds according to lender rules
Stablecoins or fiat are issued by the CeFi provider based on their process.
Key points about CeFi loans
Borrow does not execute CeFi loans
Borrow does not custody BTC
The loan relationship is directly between you and the lender
Borrow clearly indicates when a lender is custodial