This is the most important question to ask, there is a famous saying "if you don't know where the yield comes from, you are the yield' meaning its basically a ponzi scheme.
It doesnt matter if the founders went to IITs IIMS, Ivy leagues or if the company raised millions, if a platform doesn't explain in simple english where the yield comes from its a Huge RED flag.
Coming to valuete, the yield is basically interest paid by borrowers for the loan they take from lenders, the returns are not fixed as Valuete simply acts a marketplace between real borrowers and lenders ( and not some shady hedge fund doing leverage trading like FTX which brought down so many players like Vauld, Celsius) and Valuete doesnt set any of the terms and conditions of the lending activity.
If the demand for Bitcoin backed loans is high the rates go higher, if the supply catches up the rates fall.
As things stand in 2026, the supply ( lenders lending to bitcoiners ) isnt high and a result the interest rates are high, but we expect the rates to taper down over next 5 years.
Valuete is a non‑custodial marketplace where verified users can lend or borrow against Bitcoin using over‑collateralised, multi‑sig escrow and legally vetted contracts. Borrowers lock Bitcoin in a dedicated multi‑sig wallet, receive cash or stablecoins as a loan, and reclaim their Bitcoin when they repay the full loan ( principal+interest), while lenders earn best risk-adjusted Fixed income yields with near-zero default risk.
At Valuete, our core focus has been on security and legal clarity. we use 2-of-3 multi-sig wallets for securing the loan collateral (Bitcoin) which offers incredible security benefits like hacking protection (internal and external) and elimination of re-hypothecation. With multi-sig wallets, customers' funds can never be put at risk, which offers great peace of mind for users. On the other hand, We only work with loans denominated in INR or Stable coins that are secured by legal contracts which ensure strong investor protection and legal clarity.
On the Valuete marketplace, the borrowing takes place directly between a lender and borrower with Valuete simply acting as a platform for discovery. Valuete is not involved in loan origination or setting the terms of the loan, but offers tools to facilitate this process between borrowers and lenders seamlessly.
Borrowing lets you access liquidity while keeping exposure to future Bitcoin price appreciation, instead of selling your Bitcoin and losing the upside. Borrowing also helps avoid taxable events that might occur when selling.
Borrowing is not without any risks whatsoever, The collapse of Bitcoin price can trigger a margin call and wipe your remaining equity. This is why only allow conservative LTVs like 50%, we further recommend lower LTVs so that your position is secure.
Lenders include individuals, HNIs, family offices, and institutions that want predictable high yields backed by Bitcoin as collateral. Borrowers are Bitcoin holders ( mostly individuals ) seeking cash or stablecoins without selling their Bitcoin by pledging it as collateral.
Loan proceeds can generally be used for business expenses, investments, or personal liquidity needs, as long as they comply with local law and platform policy. Use of funds for illegal activities, sanctions‑evading activity, or other prohibited purposes is not allowed and may result in account suspension/ blacklising.
Valuete is focused on offering a high level of security and legal clarity for all the products and services we offer; we believe only Bitcoin meets the high bar we have set. By being a Bitcoin-only platform, we can focus our energies on providing a high-quality product to our customers instead of fighting legal battles with SEC and other agencies. Not to mention, over the long term, we believe 99% of alt-coins will no longer exist.
Depending on your region and the specific offer, loans can be denominated and paid out in fiat currencies and/or stablecoins. The available currencies and payout methods are clearly shown in each loan listing before you commit as a lender or borrower.
Valuete has individual and enterprise plans with different structures to ensure smoother operation of the platform. As such, our fees are lower compared to other platforms as we don't have huge overhead costs of running a centralised crypto lending platform, which we pass on as benefits in the form of lower fees.
The Valuete Marketplace allows for competitive market-rates terms by matchmaking ready-and-willing Lenders with receptive Borrowers. Interest rates (APY) will vary based on the duration of the loan, the initial LTV (value of bitcoin collateral pledged), and loan type and as such is determined by supply and demand for credit. Contact your valuete Account manager for more details.
Multi-sig wallets are generated when 2 or more regular wallets are combined and as such are not sold separately per se. Any regular hardware wallet like a ledger or trezor can help you create multi-sig wallet addresses. Contact your Valuete Account Manager for onboarding.
Valuete follows KYC norms for all the customers on the platform. Business customers will need to submit additional documents as requested by the platform. The lenders on the platform could demand additional documents for their own KYC and AML checks as part of the loan agreements in alignment with both federal and state law, which will be disclosed to borrowers.
Loss of private keys can be practically eliminated by keeping a copy of the 24-word seed safely in a secure location. However, in the extreme event of losing access to your private key, you can request the company ( Valuete ) to take part in the co-signing instead of you for a small facilitation fee.
Security is the most important aspect for digital assets like Bitcoin as they have some of the highest flight risk of all assets in human history.
Gold worth $100 Million weighs more than 1 ton and would raise a lot of alarm bells to move around, whereas Bitcoin worth billions could be moved across borders and jurisdictions seamlessly. As such, the security profile of Bitcoin is much different compared to heavy metals like gold.
Thankfully, multi-sig wallets make the job of securing Bitcoin significantly easier and are an incredibly useful tool for vastly improving security by orders of magnitude.
Let's divide security risks into internal and external risks. Internal risks include loss of private keys and collusion. External risks include hacking by bad actors.
A Multi-Signature, or Multi-Sig, bitcoin wallet typically has 2 or more joint account owners/ Co-signers. Now, Out of say 3 co-owners we can set a threshold of say 2 co-signers as the requirement to process any transactions. This incredible innovation improves security by orders of magnitude if designed properly with hard wallets.
The Valuete model relies on using 2-of-3 multi-signature wallets for storing Bitcoin which is used as collateral for securing the loan originated between borrower and lender. As mentioned previously, this offers far better protection from hacking and re-hypothetication.
The Valuete model relies on using 2-of-3 multi-signature wallets for storing Bitcoin which is used as collateral for securing the loan originated between borrower and lender. As mentioned previously, this offers far better protection from hacking and re-hypothetication.
Each loan gets its own dedicated multi‑sig escrow address where the borrower's Bitcoin collateral is locked with over‑collateralisation. Funds cannot move without sufficient signatures and must follow the contract terms for funding, repayment, and liquidation.
No, Valuete alone cannot move collateral because it does not control a majority of the keys needed to sign transactions from the escrow wallet. Any movement of funds must follow the agreed contract flows and be co‑signed by the required parties.
Using standalone hardware wallets for storing Bitcoin is considered a fairly secure process, as hardware wallets like Ledger or Trezor have no known significant vulnerabilities at this time. The primary possibility is a physical attack ( like a burglary), which can be avoided by keeping the hardware wallet in a secure location.
In an extremely unlikely event of hacking, since the collateral is placed on a 2-of-3 Multi-sig wallet, successful hacking of funds needs access to 2 private keys, not just one, so this makes hacking of Bitcoin collateral incredibly difficult to pull off and so makes it unappetizing for potential hackers/ attackers. Now, compare this to hacking a centralised custodian who has full access to digital assets worth billions; it'll be impossible for any security company to withstand an attack from determined hackers when the prize is in billions.
Valuete has a robust security infrastructure in place to protect both borrowers and lenders.
With these layers of Lender protection and pre-set LTV limit triggers on over-collateralised Bitcoin holdings, your loan is nearly free from default and custodial risk.
By using a simple Electrum Bitcoin wallet, you can create and check the authenticity of a multi-sig address. Simply enter the 3 public keys and select the 2-of-3 option, the electrum wallet generates a multi-sig with a lot of deposit addresses. The first address is the one that's picked mostly for collateral deposited in our system.
Since the 2-o-f-3 multi-sig wallet address needs atleast 2 signatures to move funds, you can be sure of its authenticity ( not manipulated on the front-end ) provided you, the borrower were able to generate the same address with our XPub, which is widely available on our various social media handles.
Check this video on how to verify the authenticity through the step-by-step guide
It is worth pointing out that this level of security and transparency are not offered by any other crypto platform, and front-end manipulation of deposit addresses is not covered by any crypto exchanges at all.
By using a simple Electrum Bitcoin wallet, you can create and check the authenticity of a multi-sig address. Simply enter the 3 public keys and select the 2-of-3 option, the electrum wallet generates a multi-sig with a lot of deposit addresses. The first address is the one that's picked mostly for collateral deposited in our system.
Since the 2-o-f-3 multi-sig wallet address needs atleast 2 signatures to move funds, you can be sure of its authenticity ( not manipulated on the front-end ) provided you, the borrower were able to generate the same address with our XPub, which is widely available on our various social media handles.
Valuete doesn't offer insurance for theft of funds if the keys of the Lender and borrower are involved, We however offer insurance protection for misuse of our key by bad actors as an add-on.
The fact of the matter is, even though a lot of centralised custodians claim they have ' insurance coverage, the coverage ratio is very low i.e most exchanges/lenders do not have adequate coverage to cover the full value of assets they hold, which means in case of a large hacking event, the coverage simply won't be sufficient.
For this reason, we believe it's much better to use a multi-sig wallet set-up, which offers an order of magnitude more security than a centralised custodian with inadequate insurance coverage.
Any insider collusion and defrauding of parties is completely illegal and the erring parties will be subject to legal action.
Having said that, incentives are misaligned for insider collusion with a multi-sig configuration, unlike a centralized custodian where the custodian can run off with billions of dollars to a US adversarial jurisdiction and escape legal accountability.
Now, Let's say the borrower colludes with valuete and tries to defraud the lender, in this case the bitcoin would be moved from multi-sig wallet to the wallet controlled by borrower. Owing to an interesting transparency property of multi-sig wallet,every multi-sig transaction carries a signature which can used to figure which parties were actually involved in a transaction, with this its can be easily proven to the court that it was the borrower and Valuete keys that were involved in the transaction. Lenders can now sue the borrower and Valuete for breach of contract and in most case claims damages plus the pending amount.
Lets reverse the roles and say its Lender and Valuete who collude to defraud borrower, the borrower will sue Valuete and lender by proving their guilt from the transaction signature and claim settlement and damages.
If Valuete were to be involved in any illegal activity like this, the directors or employees involved would not only be thrown in jail, the company loses credibility and will lose all customers ( other lenders and borrowers ) who can simply close their loans and move bitcoin from multi-sig wallets back to original owners.
LTV (loan‑to‑value) is the ratio between the loan amount and the current value of the Bitcoin collateral backing it. Lower LTV means a larger safety buffer against price drops, reducing the likelihood of margin calls or forced liquidation.
The dashboard shows live collateral value, LTV, repayment status, upcoming due dates, and critical thresholds for margin calls and liquidation. Notifications alert you when LTV or payment status approaches risk levels so you can act in time.
The tenure of loans, like every other loan metric is dependent on the borrower and lender interests, however the minimum tenure of the loan on the platform is 3 months, while the maximum is 5 years. Most loans have a tenure of 12 months and offer loan-rollover capability.
If LTV rises towards warning thresholds, borrowers receive alerts to add collateral or repay part of the loan. Ignoring these warnings can eventually trigger liquidation under the terms defined in the contract.
Liquidation is the event of selling collateral ( bitcoin ) to repay some or all of the outstanding debt. Liquidation is triggered only after the borrower misses the liquidation notifications being sent before the Loan to Value ( LTV) crosses a liquidation ratio set by the lender.
For example: lets say you borrowed 100,000 INR against a collateral of 200k worth bitcoin with bitcoin price at 90 Lakh INR. Now lets say Bitcoin price goes down and hits 50 Lakh INR, Now the LTV is 90% which is a typical ratio when you as a borrower will receive margin alerts from the lender to post most collateral (Bitcoin) to bring the LTV ratio back to 50%. However incase borrower fails to post more collateral and the LTV hits 90% which is a typical liquidation ratio, the lender reserves the right to trigger forced liquidation.
Liquidation is only triggered if Loan to Value- LTV falls to a specified ratio ( typically 85-95% ) as per the loan agreement and if the borrower doesn't respond to the final margin notice from the lender within the set time period ( typically 1 hour ).
Once the lender decides to go ahead with liquidation ( after the final margin notice is unmet by the borrower) , the lender goes ahead and signs a transaction with their private key and shares a partially signed bitcoin transaction file or PSBT file with the borrower. The borrower needs to sign this PSBT file with their private key and complete the transaction. Ignoring this request from the lender by the borrower is considered a serious breach of contract and results in fines and blacklisting by Valuete.
In case the borrower doesn't respond to the final notice in 1 hour as specified in the contract, the 3rd key or valuete key will be used to complete the transaction.
Once liquidation starts, enough collateral is sold or transferred from multi‑sig escrow to cover outstanding principal, interest, and any applicable fees. Any remaining Bitcoin or Cash after all dues are transferred back to the borrower.
Usually, there is a defined grace or response period before a liquidation becomes irreversible, during which borrowers can cure by adding collateral or repaying. After a certain point in the process, liquidation cannot be stopped further to protect the lender's position as agreed.
Conservative starting LTVs and real‑time monitoring reduce the chance of loans becoming under‑secured, but extreme volatility can still create a shortfall. In such cases, liquidation proceeds may not fully cover the outstanding amount, and this residual market risk is transparent to both parties in advance.
This is arguably the biggest risk of the 'Valuete model' and needs careful attention from lenders. Having said that, most historical Bitcoin models show that an LTV of 50% is generally considered very safe.
If a borrower stops communicating and misses required payments or margin calls, the contract is treated as a default. The platform then proceeds with liquidation steps based on the pre‑agreed rules about collateral liquidation, without needing further cooperation from the borrower.
Borrower not responding to the liquidation request ( when the terms are met) by the lender is considered the most serious offence and results in 5% penalty and lifetime blacklisting.
If a borrower stops communicating and misses required payments or margin calls, the contract is treated as a default. The platform then proceeds with liquidation steps based on the pre‑agreed rules about collateral liquidation, without needing further cooperation from the borrower.
Borrower not responding to the liquidation request ( when the terms are met) by the lender is considered the most serious offence and results in 5% penalty and lifetime blacklisting.
Valuete operates as a technology and shared custody platform enabling contract‑based, secured lending between verified parties, with documentation reviewed by legal advisors. It does not provide individualised legal, tax, or investment advice, and users are responsible for ensuring their own compliance and reporting.
Each loan is governed by a digitally signed agreement setting out principal, interest, collateral, LTV thresholds, repayment schedule, and dispute mechanisms. These are designed to be enforceable under applicable law, while multi‑sig and pre‑defined liquidation rules add an additional economic enforcement layer.
Most lenders use the platform as investors entering into secured loan agreements rather than as deposit‑taking institutions, so NBFC‑style registration is not required. However, local rules may vary by country, ticket size, and investor profile, so lenders should consult their own advisors about licensing requirements to lend.
Yes, KYC is required for most meaningful lending and borrowing activity, to satisfy regulatory and risk‑management standards. Limited‑KYC tiers, if supported, will have clear caps and restrictions, and full functionality generally requires complete verification.
Only essential personal data is collected and stored securely, and all communication with the platform is encrypted. On‑chain activity is linked to internal contract IDs rather than your real‑world identity, and information is used primarily for compliance and platform operations.
Loans, interest income, liquidation proceeds, or other gains can have tax consequences depending on your jurisdiction's rules. Valuete can provide transaction histories, but does not give tax advice, you should consult a qualified tax professional to understand your obligations.
Create an account, complete KYC, add your bank account details and XPub and then publish a lending offer or accept a borrower's request. After a match, both parties ( lenders and borrowers) e-sign the lending agreement, post which the borrower deposits collateral into a multi‑sig escrow, the contract becomes officially active and your capital starts earning interest.
Borrowers must complete identity verification and pass risk checks, and they must deposit sufficient Bitcoin collateral before any loan is disbursed. Additional factors such as repayment history, disputes, and blacklist status are also monitored to filter out problematic users.
Yes, you can specify principal, currency, interest rate, LTV band, and tenure when creating offers, If you prefer a simpler flow, you can also use pre‑configured default terms that are the most popular ones and have a higher success rate defined.
Valuete may define platform‑wide minimum and maximum lending thresholds per loan or per user tier based on operational and regulatory considerations. Within those ranges, you are free to diversify across many smaller loans or concentrate in larger positions.
Yes, you can normally edit or withdraw open offers at any time until a borrower locks collateral and signs the contract tied to that offer. Once the contract is active and collateral is in escrow, any changes require a formal amendment or extension agreed by both parties.
Your dashboard shows each contract's principal, accrued interest, upcoming due dates, collateral value, and LTV. You receive alerts for funding, repayments, margin calls, and liquidations, and you can view or export your historical returns over time.
Longer tenures may qualify for higher headline yields or better marketplace visibility, subject to demand and risk profile. Any such incentives are expressed in the rate you set or the offers the platform surfaces to you.
All Bitcoin transfers into and out of multi-sig escrow are recorded on‑chain and reconciled with the platform's internal ledgers for the associated contract. Fiat currency ( INR) transfers are confirmed by both borrowers and lenders and cannot be automatically tracked by the platform as we do not have access borrower or lender bank accounts.
Once you sign up and finish KYC, you are ready to borrow through the platform.
You need to input xpub and ensure that you place collateral in that wallet, your loan eligibility will be based on the bitcoin holdings and LTV levels acceptable to the lender.
The next step is you can pick an existing loan offer from the lenders or you can post your own borrowing offer. Once you find an interested lender, you can e-sign the contract and place the collateral into the multi‑sig escrow address shown in your dashboard. Once the transaction is confirmed, the funds are disbursed to you as per the agreed method and your loan will officially start.
Collateral is based on the LTV agreed in the offer—typically around 200% of the loan amount plus any origination fee. The platform calculator shows you the exact Bitcoin amount you must lock before you confirm the deal.
After your Bitcoin deposit receives the necessary confirmations and all signatures are in place, the loan is usually funded within hours, depending on the lenders. You will see a status change in your dashboard and receive a notification once the payout is completed.
In the marketplace model, you can decide your own bespoke terms, you can indicate your desired LTV, tenure, and rate and seek matching offers, or respond to counter‑offers from lenders. Once both sides accept a set of terms, those are locked into the contract for the duration of the loan.
At valuete, there is a platform‑wide minimum and maximum loan sizes per borrower or per loan may apply, based on risk, liquidity, and regulatory constraints. You will see the allowed range when structuring your request, so you can split or combine needs as needed.
Yes, you can normally cancel your loan request before collateral is locked and the contract is signed. Once the contract is active and collateral is in escrow, cancellation would require following the contract terms for early termination.
Your rate depends on the offer you accept that reflects LTV, loan term, risk profile, and market conditions for Bitcoin‑backed loans. All rates are shown clearly before you commit, and you should only accept a loan when you understand and agree with the various terms and conditions.
Borrowers typically pay an origination fee at loan start, plus a potential liquidation fee if forced liquidation ( by Lender) occurs during the loan term. These fees are disclosed in advance and are baked into the loan's APR. There are no extra hidden fees are charged by the platform.
Lenders generally receive the full contractual interest from borrowers and do not pay separate origination fees to Valuete. Lenders will be asked to pay additional fees should they lose their key or if they dont participate in collateral transfer once the loan is fully paid off by the borrower ( i.e incase Valuete is forced to be involved).
The simple thumb rule to avoid additional fees paid to Valuete is simple: follow the terms of the contract, be responsive.
Repayments are made via the channels specified in the contract—such as bank accounts or on‑chain stablecoin payments—referencing the loan ID. Each payment is logged on the platform, and where applicablem on‑chain, and you can see its impact on outstanding principal, interest, and LTV in your dashboard in near-real time. Mis-repayments or delayed payment affects the ratings of borrowers
Most structures allow full or partial early repayment without penalty, with interest recalculated up to the actual payoff date. Early repayment triggers release or partial release of collateral, according to the contract.
The tenure of loans, like every other loan metric is dependent on the borrower and lender interests, however the minimum tenure of the loan on the platform is 3 months, while the maximum is 5 years. Most loans have a tenure of 12 months and offer loan-rollover capability.
Extensions or restructuring are generally possible, but only if both parties agree and, where required, the platform approves the change. Any modification needs to be documented via an addendum or new contract, and the associated multi‑sig and repayment schedules need tobe updated accordingly.
Valuete platform promotes roll-over of loans (with lower costs for borrowers) as the default option as Bitcoin is a long duration, long-term appreciating asset
When the borrower has repaid principal, interest, and any agreed fees in full, the loan is marked as settled on the platform. The Bitcoin collateral is released back to the borrower's wallet from the multi‑sig collateral wallet, and the lender's realised return is updated in their account. Both parties rate each other and the Legal observer ( if they are involved ).
Upon full settlement, collateral is released from the contract‑specific multi‑sig escrow back to the borrower's designated address. The release transaction is visible in the dashboard and can be independently verified on‑chain.
We follow a 'Uber-like' ratings policy where both parties rate each other. Once the loan is closed i.e Loan amount is paid by the borrower and the bitcoin is returned to the borrower, both lender and borrower are offered a chance to rate their counter-party, which helps both parties build credibility on the platform. The User Ratings help in faster future loan approvals for borrowers and faster acceptance for lenders.
Valuete doesn't have any material information that is of particular help in resolving disputes that isn't already available with either parties per se. The official policy of Valuete is neutrality and we do not pick sides in disputes. We request the concerning parties to resolve the disputes amicably and in case of serious disputes we request the concerned parties to resolve them in a court of law. Valuete uses this evidence to act as an arbitrator as per the arbitration agreement ( the tri-party agreement)
Valuete respects the rule of law in both spirit and letter; we abide by agreements set between lenders and borrowers. Any serious breach of the contracts set between lender and borrower will result in the blacklisting of the erring party from the platform ranging from 1 year ( for a minor offence) to life ( for a major offence) apart from any penalties imposed.
Lenders are generally responsible for reporting and paying taxes on interest income and Borrowers may have separate tax obligations related to Bitcoin sales in case of liquidation, both sides must seek their own tax advice.
In case of Liquidation of collateral, lenders are expected to keep a note of excess or shortfall compared to the loan amount outstanding so that they report back this to the borrower ( and the platform).
Any excess amount needs to be sent back to the borrower while the shortfall would be recovered from the borrower.
Valuete provides the technical and contractual framework and may coordinate dispute handling and liquidation as per the platform policy. However, for additional enforcement beyond collateral recovery, lenders and borrowers should rely on the signed agreement and pursue remedies under applicable law with their own legal counsel.