Loan Options
Flexible Loan Options on Diamond Hands
Diamond Hands offers two borrowing models to suit different needs:
Fixed-Term
Choose a fixed duration of 3, 6, or 12 months with a fixed interest rate.
Interest is determined and settled upfront and applied over the full term.
Ideal if you prefer predictability and plan to hold your position for a set period.
At maturity, you must repay the full UCD debt or risk liquidation as the liquidation ratio begins to rise exponentially.
Monthly Rolling Agreements
Pay a monthly fee instead of locking into a fixed term.
A more flexible line of credit, with no fixed end date.
You can repay, extend, or borrow more at any time (within collateral ratio limits).
As long as you cover the monthly fee and maintain a safe collateral ratio, the loan stays active.
You choose the model that fits your strategy - fixed certainty or flexible control.
Fixed Term Flexibility
If you wish to extend the duration of your fixed term on Diamond Hands, this is fully supported by the protocol. As long as your position remains above the minimum CR, your loan can continue indefinitely and transfer the agreement to a continued monthly rolling APY — in this scenario there is no fixed expiry unless your position becomes undercollateralised or hits liquidation thresholds.
You can also borrow more UCD at any time, provided your collateral ratio stays above 150%. The system will automatically calculate how much additional UCD you’re eligible to mint based on the current value of your BTC collateral.
This flexibility allows you to manage your position dynamically—drawing more liquidity or extending your borrowing horizon—without needing to close or restart the loan. Just be mindful that any increase in borrowing reduces your collateral buffer and brings you closer to liquidation risk, especially as the liquidation ratio rises over time.
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