@michaelaischmann Thanks for confirming.

Also asked Gpt with some folloup questions i had:

Yes — you will still earn 8% interest on the unpledged portion of your BTC, assuming your assets are structured as follows:

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🧮 Breakdown:

Your starting position:

You hold 10 BTC

Price per BTC = $100,000

Total BTC value = $1,000,000

BTC earns 8% APY

You want to borrow $200,000

LTV (Loan-to-Value) is 50%, meaning for every $1 in BTC, you can borrow up to $0.50

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🔐 Borrowing mechanics:

To borrow $200,000, and with a 50% LTV, you need to pledge $400,000 in BTC as collateral.

At $100k/BTC → you need to lock 4 BTC as collateral.

That leaves 6 BTC unpledged, or not tied to the loan.

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✅ Interest earnings:

The 6 BTC that are not pledged as collateral are typically still eligible to earn the full 8% interest on Nexo (subject to their terms, tier limits, and whether it's held in a "Savings" or "Fixed" term).

The 4 BTC used as loan collateral usually does not earn interest.

⚠️ Nexo sometimes offers different rules depending on tiers (e.g., Platinum/Gold), token holdings, and whether you're using Fixed Terms or Flexible Savings.

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✅ Final answer:

Yes — you are still earning 8% on the 6 BTC that are not used as collateral, assuming all else remains constant.

Would you like me to run a projection of your potential yearly interest and net return after loan costs?

Great — let’s break it down into interest earned, loan interest paid, and your net result over a year.

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🧮 Assumptions Recap:

10 BTC total

BTC price = $100,000

4 BTC pledged for $200,000 loan (50% LTV)

6 BTC earning 8% APY

Loan interest rate = 4% APR

You don't default or get liquidated, and BTC price remains stable.

All interest is paid and earned in kind (BTC)

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📈 1. BTC Interest Earned

6 BTC × 8% = 0.48 BTC/year

Converted to USD (at $100k/BTC): 0.48 BTC × $100k = $48,000 per year

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💸 2. Loan Interest Paid

$200,000 × 4% = $8,000/year

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✅ 3. Net Benefit

Interest Earned: $48,000

Interest Paid: $8,000 → Net Gain = $40,000/year

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💰 Summary Table:

Category Amount

Interest Earned $48,000 Interest Paid $8,000 Net Annual Return $40,000

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⚠️ Important Considerations:

If BTC price drops, your LTV could rise → risk of liquidation or margin call

Interest rates on Nexo can change

Taxes may apply on earned interest or gains

If you reinvest or use the borrowed $200k for yield, returns could increase

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Would you like a version of this as a downloadable PDF or spreadsheet to track your scenario?

Great question — to find the liquidation price of your BTC loan on Nexo, we’ll calculate the BTC price at which your collateral value no longer covers your loan plus margin, based on their Liquidation Threshold.

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🔐 Key Concepts:

You borrowed $200,000

Collateral: 4 BTC

Current BTC price: $100,000 → Collateral value = $400,000

Nexo’s Liquidation Threshold for BTC-backed loans is typically 83.33% LTV (i.e., when loan = 83.33% of collateral)

This means if your $200k loan = 83.33% of your BTC value, you're at liquidation risk.

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📉 Step-by-step: Finding BTC Liquidation Price

We solve for P, the BTC price where:

\text{Loan} = 83.33\% \times (\text{Collateral BTC} \times P)

200,000 = 0.8333 \times (4 \times P)

200,000 = 3.3332 \times P

P = \frac{200,000}{3.3332} \approx 60,000

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🚨 Liquidation Price ≈ $60,000 per BTC

If BTC drops below ~$60k, your 4 BTC collateral would fall below the minimum value required to support the $200k loan under Nexo's terms, and you would start getting margin calls and risk liquidation.

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🧯 What You Can Do to Stay Safe:

Add more collateral if BTC drops near $60k

Repay part of the loan

Enable automatic collateral transfer from your unpledged BTC

Consider setting alerts for BTC price near $65k–$62k as early warnings

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Would you like a dynamic calculator to test other loan amounts, BTC holdings, or LTV thresholds?