Borrowing against Bitcoin or Ethereum allows holders to access liquidity without selling their assets. In some cases, this can be done at 0% interest. That outcome depends on structure, not marketing claims.
Clapp offers a flexible crypto credit line where interest behavior is tied to usage and risk, not to the total approved limit. Understanding that distinction is essential.
Clapp does not issue fixed-term loans. Users deposit BTC or ETH as collateral and receive a borrowing limit based on the asset’s value. Funds can be drawn at any time, in full or in part. Repayment is flexible and restores available credit immediately. This structure determines when interest applies.
Clapp applies 0% interest on crypto loans to unused funds. Simply having access to a credit line does not generate cost.
Interest accrues only on:
When LTV remains below 20%, borrowing costs stay low, and unused credit remains fully interest-free. This means users are not charged for liquidity they do not use.
If the borrowed amount is repaid, interest stops and available credit increases automatically.
Loan-to-value is the primary risk control in crypto lending.
Lower LTV provides:
Clapp.finance uses a model that encourages conservative use of leverage. Staying below 20% LTV limits downside risk and keeps borrowing predictable. The 0% condition cannot be separated from this discipline.
Clapp’s credit line has no fixed schedule.
This makes the model suitable for short-term or occasional liquidity needs rather than continuous borrowing.
This structure fits users who:
It is not designed for high utilization or aggressive leverage strategies.
“0% interest” does not apply to the entire borrowing limit by default.
With Clapp, 0% applies only to unused funds. Borrowed funds accrue interest based on LTV. This distinction prevents hidden costs and sets clear expectations.
Clapp’s credit line allows BTC and ETH holders to access liquidity without paying interest on unused capital. Interest applies only when funds are drawn, and risk remains controlled through low LTV thresholds.
The result is not free borrowing, but cost-efficient access to liquidity under clearly defined conditions.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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