Liquidium Custom Loans: A Bitcoin-Native Guide

Custom Loans let borrowers and lenders set their exact terms—amount, duration, and interest—on Bitcoin Layer 1. Instead of waiting for a perfect match in the order book, you can post a request or make a direct offer on a specific Ordinal or Rune and negotiate until both sides agree. Everything settles non‑custodially via PSBTs/DLCs, and final activation/countersignature happens on‑chain.

This guide explains what Custom Loans are, how they work under the hood, and the exact steps to borrow or lend using Liquidium’s gallery‑style marketplace.

TL;DR

• Post or propose: Borrowers publish loan requests; lenders make direct offers on specific assets. Both can counter‑offer.

• Bitcoin‑native & non‑custodial: Loans use PSBTs + DLCs; custody stays with you until the loan starts or defaults.

• Clear outcomes: Repay on time → borrower reclaims collateral; fail to repay → lender can unlock collateral.

What Is a Custom Loan?

A Custom Loan is a peer‑to‑peer, negotiated loan secured by a Bitcoin‑native asset (e.g., Ordinals, Runes). See the Help Center’s Custom Loans overview for core mechanics and guardrails. Unlike instant loans (pre‑funded), Custom Loans are made to order: you propose exact terms and negotiate directly with a counterparty. This is ideal when you need bespoke terms or want to target specific, non‑floor assets.

How Custom Loans Work

1. List or target an asset

   • Borrowers: create a loan request using the asset you own.

   • Lenders: create a direct offer on a borrower’s specific asset.

2. Negotiate
   Either side can Counter to adjust amount, term, or interest until both are happy.

3. Countersign to activate
   Once you agree, both parties countersign the PSBT in Portfolio to start the loan.

4. During the term
   Borrower holds the BTC; collateral sits in escrow under a Bitcoin‑native multisig/DLC arrangement.

5. Settle

• On‑time repayment: borrower repays principal + interest; collateral returns.

• Default: lender claims the collateral per the contract.

Step‑by‑Step on Liquidium

1) Connect & Choose Your Section

• Borrow (Ordinals): https://app.liquidium.wtf/borrow/ordinals

• Lend (Ordinals): https://app.liquidium.wtf/lend/ordinals

• Portfolio (to countersign/manage): https://app.liquidium.wtf/portfolio

2) Create Your First Custom Request/Offer

• Borrowers: Click New Request → pick your collateral → set Amount, Term, and Interest (total interest for the full term) → submit.

• Lenders: From Lend, locate a borrower’s asset you like → click Make Offer → set terms and submit.

3) Negotiate Like a Pro

Use Counter on any open request/offer to propose new terms. Keep messages concise; negotiate around term, interest, and risk (collection, rarity traits, recent sales). When both sides agree, move on to countersign.

4) Countersign & Start the Loan

Open Portfolio → Pending and countersign to activate. The borrower receives BTC and the collateral moves into escrow.

5) Manage, Repay, or Resolve Defaults

Track status in Portfolio. Repay before expiry to reclaim your asset. If the term lapses, the lender claims the collateral per contract rules.

Benefits & Use Cases

• Bespoke pricing: Not bound to collection floors; price nuanced traits, provenance, or rarity.

• Targeted exposure (lenders): Aim offers at blue‑chip or specific inscriptions you want to accumulate on default.

• Flexible funding (borrowers): Unlock BTC without fire‑selling an illiquid grail; tailor duration to expected catalysts (mints, reveals, listings).

• Non‑custodial safety: PSBT/DLC flow keeps custody Bitcoin‑native; you sign each critical step.

Risks & Common Mistakes

• Overpaying/overborrowing: Without floor caps, terms can skew—know the asset and recent sales.

• Ignoring expiry: Set reminders; repay before the deadline to avoid losing collateral.

• Liquidity gaps: Custom terms can take longer to match than instant loans.

• Fee awareness: Miner fee to start a loan is deducted from proceeds; platform fee is taken from interest. Tip: Holding LIQUIDIUM can reduce the platform fee—see tiered discounts & lender bonuses.

Mitigation: Favor verified collections, read recent sales, keep terms realistic, and use lender/borrower reputational cues where available.

Custom vs. Instant vs. Order‑Book (Manual)

Want speed instead? See Instant Loans for Ordinals on our blog and try Borrow → Instant in‑app.

Custom Loans are the most flexible way to borrow or lend BTC against Bitcoin‑native assets—perfect for illiquid grails, trait‑priced collectibles, and bespoke terms. Ready to try it?

→ Open Liquidium: https://app.liquidium.wtf/borrow/ordinals and https://app.liquidium.wtf/lend/ordinals

FAQ

What assets can I use?
Ordinals today; Runes and other Bitcoin Layer‑1 assets may be supported in manual flows. Check Borrow for current coverage.

Who pays network fees?
The borrower pays the miner fee to initiate a loan; it’s deducted from the BTC loan amount.

What happens on default?
If the borrower doesn’t repay on time, the lender can unlock the collateral per the contract.

Where do I finalize a loan?
In Portfolio. Both parties must countersign to start; repayment also finalizes there.

Disclaimer

The information in this article is provided for informational and educational purposes only and does not constitute financial, investment, legal, or tax advice. Digital assets (including Bitcoin, Ordinals, Runes, and BRC‑20s) are volatile and involve risk—including the possible loss of principal. Always do your own research and consider seeking advice from qualified professionals. Use of LiquidiumWTF is subject to applicable laws, the platform’s terms, and any posted risk disclosures.