If you've ever borrowed against your Bitcoin, you know the feeling: that quiet anxiety when the market dips. Will you get a margin call? Will your Bitcoin be liquidated?

For many Bitcoin holders, crypto-backed loans offer the promise of liquidity without selling but the reality can feel like walking a tightrope. Traditional lending platforms often leave borrowers in the dark until it's too late, with sudden liquidations and minimal warning.

Arch was built differently. Our approach combines conservative risk management with white-glove service that ensures you're never surprised by market movements. 

This article will walk you through how Loan-to-Value ratios work, what triggers margin calls, and most importantly how Arch's client experience team hand-holds you through volatility so you can keep your Bitcoin while accessing liquidity.

Understanding Loan-to-Value (LTV): Your Early Warning System

At the core of every crypto-backed loan is a single metric: your Loan-to-Value ratio, the relationship between what you've borrowed and what your collateral is worth.

Example: You deposit 1 Bitcoin worth $100,000 as collateral and borrow $40,000. Your starting LTV is 40%. If Bitcoin drops to $80,000, that same $40,000 loan now represents a 50% LTV. If Bitcoin climbs to $120,000, your LTV improves to 33%.

LTV is your early warning system. It tells you how much volatility cushion you have before your loan enters risky territory.

Arch's Conservative LTV Framework

Arch uses a buffered risk ladder specifically designed for Bitcoin's volatility profile:

Bitcoin (BTC):

• Starting LTV: Up to 60%

• Margin Call: 70%

• Partial Liquidation: 80%

These conservative thresholds create multiple safety zones. When your loan is below 70%, you have significant room for market volatility. Between 70% and 80%, you enter the "cure zone", a structured window where action is required, but you still have time to respond.

Many of our clients choose to start below the 60% maximum. A Bitcoin holder who borrows at 40% LTV instead of 60% creates an extra 30% price cushion before even approaching a margin call. This means Bitcoin would need to drop approximately 42% before you'd reach a margin call creating a substantial protection against normal market swings.

Our client experience team helps you think through what LTV makes sense for your specific situation, time horizon, and comfort with volatility.

How Arch's Margin Call System Protects You

A margin call at Arch isn't a punishment, it's a structured warning system designed to give you time and options.

When a Margin Call Triggers

For Bitcoin, a margin call occurs when your LTV crosses 70%. Here's the sequence:

1. Market volatility causes your collateral value to decline

2. Your LTV rises past 70%

3. Arch's system automatically issues a margin call notification

4. You receive immediate alerts via email and dashboard warnings

5. A 24-hour cure window begins

That 24-hour period is critical. Unlike platforms that liquidate instantly, Arch has the discretion to give you extra time to meet a margin call on a case by case basis. This reflects how we think about our relationship with clients, we're here to help you keep your Bitcoin, not race to liquidate it.

The White-Glove Difference

When a margin call triggers, you're not alone with a dashboard and a ticking clock. Arch's client experience team often reaches out proactively through direct phone calls, chat messages, or scheduled video consultations.

One Trustpilot reviewer described it: "They walked me through every step... comprehensive video calls... they even double-checked addresses to ensure a safe and secure transfer." Another said, "The customer service is white glove. They noticed something unusual and reached out before disbursement."

Your dashboard includes a built-in cure calculator that shows exactly what's needed: your current LTV, the target you need to reach, and precisely how much collateral to add or loan principal to repay. No guesswork and if you have questions, the team is available 24/7.

Three Ways to Cure a Margin Call

Arch provides three clear paths to cure a margin call, and our team helps you evaluate which makes the most sense for your situation.

Option 1: Add More Collateral

Deposit additional Bitcoin, Ethereum, or Solana to reduce your LTV ratio.

Example: Your 1 BTC (now worth $85,000) securing a $60,000 loan triggers a margin call at 70.6% LTV. The calculator shows you need approximately 0.176 BTC (worth ~$15,000) to bring your LTV back to 60%.

The team often double-checks deposit addresses with you before you send, another example of our white-glove approach. Many clients keep a small reserve specifically for margin call scenarios, and we help you plan this strategy during onboarding.

Option 2: Request Partial Liquidation

You can explicitly authorize Arch to perform a partial liquidation on your behalf. Rather than scrambling to move funds during a stressful period, you can request the liquidation on your terms, knowing exactly how much will be sold and what your resulting position will be. The team walks you through the entire process, including any applicable liquidation fees (typically 2-2.5% unless prohibited by state law).

Option 3: Repay Part of the Loan

If you have access to USD or USDC, reduce your loan principal instead. Using the same example, repaying approximately $9,000 brings your loan to $51,000 and your LTV back to 60%.

This option works well if you're expecting liquidity from another source or want to reduce your overall debt burden.

Arch's Partial Liquidation Philosophy: Protecting Your Position

If no cure action is taken within the margin call cure period, Arch performs a partial liquidation, fundamentally different from how most crypto lending platforms operate.

Only What's Necessary, Nothing More

When your LTV reaches the liquidation threshold (80% for Bitcoin), Arch's system:

1. Calculates the minimum collateral needed to restore healthy LTV

2. Sells only that amount

3. Applies proceeds to reduce your loan balance

4. Returns your LTV to the starting threshold (60% for BTC)

5. Your remaining Bitcoin stays in custody as collateral

Example: Your 1 BTC at $75,000 securing a $60,000 loan hits 80% LTV. Arch sells approximately 0.24 BTC (~$18,000), reduces your loan to $42,000, and you keep 0.76 BTC. Your new LTV: ~60%.

Even in a worst-case scenario where you can't cure a margin call, you keep the majority of your Bitcoin. You're not wiped out. This partial liquidation model aligns with Arch's positioning as a wealth-management-style lender, we're trying to help you weather volatility while maintaining your conviction in Bitcoin.

What Makes Arch's Service Different

Beyond the risk framework, what truly sets Arch apart is how we deliver it. Every technical feature exists within a service philosophy that treats you like a valued partner.

Always-On, Human Support

We offer real time access to real humans through live chat, email, phone, and scheduled video consultations. As clients note on Trustpilot: "White-glove customer service... they walked me through every step" and "Always accessible... they reached out proactively when they noticed something unusual."

Proactive Risk Coaching

The client experience team doesn't wait for you to ask questions. During onboarding and throughout your loan, we provide guidance on:

• LTV strategy: Should you borrow at 60% or start more conservatively?

• Market scenario planning: "If Bitcoin drops to X, here's your margin call threshold"

• Ongoing monitoring: Dashboard walkthroughs, volatility outreach, rollover guidance

This financial coaching is typically reserved for private bank clients. Arch makes it available to all borrowers because we believe it's what Bitcoin holders deserve.

The "No Surprises" Commitment

Your dashboard uses intuitive color coding to show loan health at a glance. As your LTV approaches risky levels, you receive automated email alerts and direct outreach during high-volatility events. The cure calculator shows exact amounts needed, and the team coordinates with you on timing.

Rather than forcing you to close and reopen loans as Bitcoin appreciates, Arch offers 2-year base terms with unlimited rollovers and upsize functionality in just two clicks.

Safety and Trust: What to Look for in a Lending Partner

Given the crypto industry's history of failures, choosing the right lending partner is critical. Your Bitcoin should be:

• Held in qualified, institutional custody (Arch uses Anchorage Digital)

• Segregated in individually verifiable addresses

• Never rehypothecated or lent out

• Protected by significant insurance coverage

• Subject to bankruptcy-remote legal structures

Arch's custody framework ensures your collateral remains yours. We don't use your Bitcoin to make other loans or cover operational expenses. Your coins stay in secure, segregated storage with enterprise-grade protections including full external financial audits, regular penetration testing, and a public vulnerability disclosure program.

Arch maintains a 4.9/5 rating on Trustpilot with approximately 295 reviews, 96% of which are five stars. These are real clients who've been through the full loan lifecycle, including margin call situations. 

Independent Safety Recognition

Zone21 ranks Arch as the safest CeFi lender based on their risk assessments. 

If trust is your priority…“There’s no second best”.

Understanding the Risks

Even with conservative LTV thresholds and white-glove support, crypto-backed lending carries inherent risks.

Extreme Volatility: In sudden, severe crashes (30%+ in a single day), you may not have time to add collateral before liquidation. The best mitigation is starting with conservative LTV (40-50% instead of 60%). Our team helps you model these scenarios during onboarding.

Liquidation Costs: Partial liquidations incur fees (typically 2-2.5% unless prohibited by state law) on the amount sold, and you're selling during downturns. However, the margin call system with 24-hour cure windows gives you multiple opportunities to avoid liquidation entirely.

Platform Risk: Despite best efforts, any platform could face technical failures or custody breaches. Arch's bankruptcy-remote structure, qualified custody through Anchorage Digital, segregated collateral, external audits, and insurance coverage minimize these risks to levels comparable with traditional financial institutions.

Your Partner for Volatility and Growth

Managing LTV and volatility isn't just about technical thresholds and automated systems. It's about having a partner who treats your Bitcoin position with the same care and respect that you do, who understands that margin calls are stressful moments requiring human guidance, clear options, and collaborative problem-solving.

Arch offers conservative LTV thresholds, partial rather than full liquidations, 24-hour cure windows, and most importantly a client experience team that hand-holds you through every stage. From onboarding to rollovers to managing volatility, we're here to ensure you're never surprised by market movements and never forced to sell your Bitcoin prematurely.

With bankruptcy-remote custody, transparent operations, and a 4.9/5 Trustpilot rating earned through hundreds of real client experiences, Arch offers the combination of safety, service, and sophistication that Bitcoin holders need.

If you're exploring ways to borrow against your Bitcoin while maintaining your position, Arch's team is here to walk you through every scenario and help you structure a loan that fits your specific situation. Because we're not just here for this loan, we're here to be your partners for life.

Learn more about Arch's Bitcoin-backed lending or speak with our team to explore how we can support your liquidity needs while protecting your Bitcoin position.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrency investments are volatile and risky. Always conduct your own research before making investment decisions.