How Bitcoin Holders Can Generate Annual Cash Flow Without Selling a Single Satoshi
Powered by Financed Interest + SALT Shield™
IMPORTANT NOTICE: The term “Supplemental Income Strategy” describes a method for supplementing your income by accessing liquidity from your Bitcoin holdings through a loan. It does not imply that loan proceeds are income. Loan proceeds are debt, and borrowing against collateral entails risk. The information contained herein is for informational purposes and does not constitute investment, financial, tax or other professional advice.
You purchased Bitcoin. You’ve safely stored your Bitcoin. You’ve watched it grow. And at some point along the way, you start asking a different question: how do I actually use this?
Most Bitcoin holders face a frustrating tradeoff. Sell and trigger a taxable event, giving up long-term upside. Or hold and watch liquidity sit locked up while life moves forward.
There is a third option.
With SALT’s Supplemental Income Strategy — built on two products working together — long-term Bitcoin holders can generate predictable annual cash access, keep their Bitcoin, defer or eliminate monthly payments, and protect against forced liquidation. All without selling a single satoshi.
The Core Idea
The strategy is straightforward: borrow at a conservative Loan-to-Value (LTV) ratio against your Bitcoin, elect Financed Interest to eliminate monthly payment obligations, and add SALT Shield™ to protect your collateral from liquidation — regardless of market conditions.
Done right, this creates a reliable, repeatable annual draw from your Bitcoin holdings — structured more like a liquidity source than a typical loan.
The Two Products That Make It Work
Financed Interest
What is Financed Interest?
Financed Interest is a SALT loan feature that capitalizes interest at origination and defers all payment obligations to maturity or refinance — eliminating monthly payments and providing a discounted rate to the borrower.
SALT’s Financed Interest option allows you to borrow with no monthly payment requirement. Instead of paying interest each month, the interest is capitalized at origination and deferred — typically settled at maturity or upon refinance.
Borrowers who elect Financed Interest also receive a discounted interest rate, reducing the effective cost of borrowing. The result: you receive loan proceeds today and owe nothing until the loan matures or you choose to refinance.
This is the foundation of the income strategy. No monthly payments means the annual loan draw stays in your pocket — not used to service debt.
Financed Interest: Key Facts
- No monthly payments required
- Interest capitalized at origination
- Discounted rate for electing Financed Interest
- Settled at maturity or refinance
- Available where balloon payment structures are permitted*
*Financed Interest is not available in all jurisdictions. Contact SALT at [email protected] to confirm availability in your state before applying.
SALT Shield™
What is SALT Shield™?
SALT Shield™ is a no-liquidation loan upgrade. For a one-time fee, SALT agrees to forbear margin calls and market-triggered liquidations for the remainder of your loan term — regardless of Bitcoin price movement — provided you remain current on any required loan payments.
SALT Shield™ is SALT’s no-liquidation loan upgrade. For a one-time fee, your loan becomes protected from margin calls and market-triggered liquidations for the remainder of its term — regardless of where Bitcoin’s price goes — provided you remain current on any required loan payments.
This is what transforms a Bitcoin-backed loan into a reliable liquidity tool. Without liquidation protection, a sharp market downturn can trigger a margin call at exactly the wrong moment. SALT Shield™ removes that market-volatility risk.
SALT Shield™: Key Facts
- No margin calls for the life of the loan term
- No forced liquidations due to market volatility
- One-time fee — paid at enrollment
- Available on certain loans over $50,000
- Must be purchased at least 3 months before loan maturity
- Collateral withdrawals not permitted while enrolled
- Your LTV must be below 70% to enroll
- If you choose to refinance, you must re-enroll after your new loan has funded
How the Strategy Works Annually
The income strategy is designed to repeat year over year. Here is how a typical annual cycle looks:
Annual Income Cycle
- Originate or refinance a SALT loan at a conservative LTV (15–50%)
- Elect Financed Interest — no monthly payments required
- Add SALT Shield™ — eliminate liquidation risk for the loan term
- Receive loan proceeds directly to your bank account
- At maturity, refinance: pay down interest and draw fresh proceeds for the next year
- Repeat annually — your Bitcoin stays intact, your cash access continues
Real Numbers: Three Scenarios
The following examples assume a BTC price of $60,000 and a 5 BTC collateral position ($300,000 in collateral value). Interest rates shown are illustrative — actual rates vary by loan size, term, and eligibility. No monthly payments are made in any scenario.
*Price note: These examples use $60,000 per BTC for illustration purposes only. Bitcoin is currently trading at significantly different levels. All figures are proportional — the strategy mechanics are identical at any price. See current rates and run your own numbers at saltlending.com.
| 15% LTV | 30% LTV | 50% LTV | |
|---|---|---|---|
| BTC Collateral | 5 BTC | 5 BTC | 5 BTC |
| BTC Price (assumed)* | $60,000 | $60,000 | $60,000 |
| Collateral Value | $300,000 | $300,000 | $300,000 |
| Starting LTV | 15% | 30% | 50% |
| Annual Loan Draw | $45,000 | $90,000 | $150,000 |
| Interest Rate (incl. SALT Shield™)** | 8.70% | 8.70% | 9.45% |
| Interest (financed)** | ~$3,915 | ~$7,830 | ~$14,175 |
| Net Cash to Borrower | ~$41,085 | ~$82,170 | ~$135,825 |
| LTV After Year 1† | ~16.3% | ~32.6% | ~54.7% |
| SALT Shield™ Eligible | Yes | Yes | Yes |
| Monthly Payment Required | None | None | None |
**Interest rate shown is illustrative. Actual rates vary based on loan size, term, collateral, and jurisdiction. This is not a loan offer. Contact SALT for current rates and terms.
†LTV figures reflect capitalized interest added to principal. Figures are estimates; actual results will vary based on exact rate, SALT Shield™ fee, and term.
In the conservative tier, a 5 BTC holder walks away with approximately $41,085 in accessible cash — with no monthly payments, no liquidation risk, and their Bitcoin fully intact. In the moderate tier, that number grows to over $82,000.
Why Low LTV Matters
The most important variable in this strategy is where you start. A low LTV gives you three things:
- A large safety buffer if Bitcoin’s price declines
- More room to refinance and redraw annually without exceeding collateral limits
- Lower SALT Shield™ fees — pricing is based in part on LTV at enrollment
SALT supports starting LTVs from as low as 10% up to 70%. For an income strategy, we recommend starting between 15–50% depending on your annual cash need and risk tolerance.
Who This Strategy Is For
This strategy is well-suited for:
- Long-term Bitcoin holders who want liquidity without selling
- High-net-worth individuals seeking annual cash access from a non-traditional asset
- Anyone who wants to supplement liquidity without triggering capital gains
- Bitcoin holders who have experienced margin call anxiety and want a safer borrowing structure
It is not designed for short-term borrowers with a defined near-term repayment plan. If you have a specific near-term liquidity need, a standard SALT loan may be a better fit.
Comparison: SALT Income Strategy vs. Standard Bitcoin Loan
| Feature | SALT Income Strategy | Standard BTC Loan |
|---|---|---|
| Starting LTV | 10–50% | Up to 70% |
| Monthly Payments | None — interest capitalized at origination | Required |
| Interest Treatment | Financed & deferred; discounted rate | Paid monthly |
| Liquidation Risk | Eliminated with SALT Shield™* | Standard margin call applies |
| Annual Cash Access | Refinance or draw annually | One-time disbursement |
| Tax Treatment | Loan proceeds generally not taxable† | Loan proceeds generally not taxable† |
| Management Required | Minimal — annual refinance or draw | Active LTV monitoring |
*SALT Shield™ liquidation protection applies for the life of the loan term, provided you remain current on required loan payments.
†Loan proceeds are generally not considered taxable income. This is not tax advice. Tax treatment depends on individual circumstances and jurisdiction. Consult a qualified tax advisor.
SALT Supplemental Income Strategy vs. Other Liquidity Options
When evaluating how to access the value stored in your Bitcoin, there are several alternatives to consider:
Selling Bitcoin outright — immediately converts your holdings to cash and eliminates all future exposure to Bitcoin price appreciation. It also triggers a capital gains tax event. For long-term holders with a low cost basis, the tax cost can be significant, and you permanently give up the asset.
Traditional home equity loan (HELOC) — allows you to borrow against real estate equity, typically at lower rates, but requires a home with sufficient equity, involves a credit check, and can take weeks to fund. It also has no connection to your crypto holdings.
Standard crypto-backed loan with monthly payments — provides liquidity without selling, but requires monthly interest payments, maintains standard liquidation risk (margin calls if price drops), and does not offer a structured annual refinance cycle. Best suited for shorter-term, defined liquidity needs.
SALT Supplemental Income Strategy — combines no monthly payments (Financed Interest), no liquidation risk for the term (SALT Shield™), and an annual refinance structure designed to repeat as a recurring liquidity cycle. Best suited for long-term holders who want ongoing cash access without selling.
Key Takeaways
- No monthly payments — interest is financed at origination and settled at maturity or refinance.
- No liquidation risk — SALT Shield™ protects your collateral from margin calls for the life of the loan term, provided you remain current on required payments.
- Repeatable annual cycle — refinance each year to draw fresh proceeds while your Bitcoin stays intact.
- Loan proceeds are not taxable income in most cases — but consult a qualified tax advisor for your specific situation.
- Low starting LTV (15–30%) provides the most annual draw flexibility, the lowest SALT Shield™ fee, and the largest safety buffer.
Getting Started
To implement this strategy:
- Apply for a SALT loan at saltlending.com
- Select your loan amount and LTV — lower is better for this strategy
- Elect Financed Interest — confirm availability in your state
- Add SALT Shield™ once your loan is funded and eligible
- Receive proceeds and plan your annual refinance cadence
Questions? Contact our team at [email protected] or call 1-800-931-1259 (Monday–Friday, 9AM–5PM MST).
SALT Lending LLC (NMLS #1711910). This content is for informational purposes only and does not constitute financial, investment, tax, or legal advice. Loan availability, rates, and product features vary by jurisdiction and are subject to change. SALT Shield™ and Financed Interest are subject to eligibility requirements and applicable terms and conditions. Consult a qualified professional before making financial decisions.
FAQ
Supplemental Income Strategy: Product Guide & FAQs
Everything you need to know about generating annual cash access with SALT
Overview
What is the SALT Supplemental Income Strategy?
It is a structured Bitcoin-backed borrowing program designed to generate predictable annual liquidity — without selling your Bitcoin, making monthly payments, or taking on meaningful liquidation risk. The strategy combines two SALT products: Financed Interest and SALT Shield™.
How can I get cash from my Bitcoin without selling it?
SALT allows you to borrow against your Bitcoin as collateral. You deposit BTC, receive a loan in USD, and your Bitcoin stays in your account (protected from liquidation when SALT Shield™ is active). You repay or refinance at maturity — never forced to sell.
What makes this different from a standard Bitcoin-backed loan?
| SALT Supplemental Income Strategy | Standard Bitcoin-Backed Loan |
|---|---|
| No monthly payments — interest is financed at origination and deferred until maturity or refinance. | Standard monthly interest payments required throughout the loan term. |
| No liquidation risk — SALT Shield™ protects your collateral from margin calls and forced sell-offs for the life of the loan term, provided you remain current on required payments. | Standard margin call applies; forced liquidation may occur if LTV thresholds are breached. |
| Repeatable structure — the loan is designed to be refinanced annually, creating a recurring cash access cycle year over year. SALT Shield eligibility requirements apply. | One-time disbursement structure; refinancing is possible but not designed as an annual cycle. |
Who is this strategy designed for?
- Long-term Bitcoin holders who want annual liquidity without selling.
- High-net-worth individuals looking to supplement liquidity from a non-traditional asset.
- Anyone who wants to avoid capital gains events while accessing the value of their Bitcoin.
- Borrowers who have experienced margin call stress and want a more protected structure.
Financed Interest
What is Financed Interest?
Financed Interest is SALT’s deferred interest product. Rather than requiring monthly interest payments, SALT capitalizes the interest at origination and defers it to maturity. Borrowers who elect Financed Interest also receive a discounted interest rate.
Are there any fees for electing Financed Interest?
No. There are no additional fees for electing Financed Interest. In fact, SALT provides a rate discount to borrowers who opt into this structure.
When does the interest get paid?
Interest is capitalized at origination and deferred. It is settled at loan maturity or upon refinance — whichever comes first. There are no monthly payment obligations during the loan term.
Is Financed Interest available in my state?
Financed Interest is only available in jurisdictions where balloon payment structures are permitted under applicable law. Contact SALT at [email protected] to confirm availability in your state before applying.
Can I make voluntary payments during the loan term?
Yes. While no monthly payment is required, you are permitted to make voluntary principal or interest payments at any time. There are no prepayment penalties.
SALT Shield™
What is SALT Shield™?
SALT Shield™ is a no-liquidation loan upgrade. For a one-time fee, SALT agrees to forbear margin calls and market-triggered liquidations for the remainder of your loan term — regardless of how far Bitcoin’s price drops. Your collateral stays intact as long as you are current on any required loan payments in accordance with your loan terms.
What happens to my Bitcoin loan if the price crashes?
With SALT Shield™ active, a price decline does not trigger a margin call or forced liquidation for the duration of your loan term. Your Bitcoin collateral remains in your account. At maturity, if your LTV is elevated, you will need to address it through repayment or a collateral top-up before refinancing. This is why starting at a low LTV provides the most flexibility.
What loans are eligible for SALT Shield™?
To be eligible, your loan must meet the following baseline requirements:
- Loan amount of at least $50,000
- Current LTV below 70%
- At least 3 months remaining before loan maturity
- Located in an eligible jurisdiction
Additional eligibility criteria may apply. Log into your SALT account to see if your loan qualifies.
How is SALT Shield™ priced?
Pricing is dynamic and based on several factors, including your loan’s current LTV, the amount of Bitcoin collateral, and the time remaining on your loan. Lower LTV loans pay lower fees. The exact fee is shown before you commit — there are no surprises.
Can I still withdraw collateral while enrolled in SALT Shield™?
No. Collateral withdrawals are not permitted while SALT Shield™ is active. This is part of what enables SALT to guarantee no liquidation — your collateral position must remain stable for the protection to apply.
What happens if I refinance while enrolled in SALT Shield™?
If you refinance, you may be eligible to receive a credit toward re-enrollment in SALT Shield™ on your new loan. Once the new loan is funded, you can re-enroll subject to eligibility requirements. See SALT Shield™ Terms and Conditions for full details.
What happens if I repay early?
You can repay your loan at any time with no prepayment penalty. The SALT Shield™ service is non-refundable, including in cases of early repayment before the scheduled maturity date.
Strategy Mechanics
What LTV should I use for this strategy?
SALT supports starting LTVs from 10% up to 70%. For the income strategy, we recommend the following ranges based on risk tolerance:
- Conservative (15% LTV): Maximum protection, lowest annual draw, highest buffer against price declines
- Moderate (30% LTV): Balanced approach, meaningful annual cash access, solid safety margin
- Aggressive (50% LTV): Higher annual draw, reduced buffer, still eligible for SALT Shield™
The lower your LTV, the lower your SALT Shield™ fee and the more annual draws you can sustain before the loan balance approaches collateral limits.
How does the annual cycle work?
- Originate or refinance a SALT loan at your target LTV
- Elect Financed Interest — no monthly payments during the term
- Receive loan proceeds to your bank account
- Enroll in SALT Shield™ — eliminate liquidation risk for the term
- At maturity, refinance: the deferred interest is settled, and you draw fresh proceeds for the next period
- Repeat — your Bitcoin remains intact throughout
What happens if Bitcoin’s price rises?
If Bitcoin appreciates, your LTV decreases, giving you additional collateral capacity. You may be eligible to increase your loan amount at refinance, drawing more proceeds in subsequent years — effectively growing your annual liquidity access alongside your Bitcoin’s value.
What happens if Bitcoin’s price drops?
With SALT Shield™ active, a price decline does not trigger a margin call or liquidation for the duration of your loan term. Your collateral stays in your account. At maturity, if your LTV is elevated, you will need to address it through repayment or collateral top-up before refinancing. This is why starting at a low LTV provides the most flexibility.
Is there a minimum Bitcoin deposit required?
SALT’s minimum loan amount is $5,000. The amount of Bitcoin required depends on the LTV you select and Bitcoin’s price at the time of origination. Contact SALT for current minimums based on your specific situation.
Is there a credit check?
No. SALT loans are collateral-based. There is no credit check required to originate a loan.
Getting Started
How do I apply?
- Apply at saltlending.com or log into your existing SALT account.
- Select your loan amount, LTV, and elect Financed Interest during the application process.
- Complete identity verification (KYC for individuals, KYB for businesses).
- Sign your loan agreement and deposit BTC collateral.
- Receive funding — typically same day or next business day after collateral is confirmed.
- Add SALT Shield™ once your loan is active and eligible.
How quickly can I get funded?
Funding typically occurs the same day or next business day after your collateral is received and your loan documents are signed.
Who do I contact if I have questions?
Loan Support: [email protected] | 1-800-931-1259
Sales Team: [email protected] | Schedule a call at saltlending.com
Office Hours: Monday–Friday, 9AM–5PM MST
SALT Lending LLC (NMLS #1711910). This document is for informational purposes only and does not constitute financial, investment, tax, or legal advice. Loan availability, product features, and rates vary by jurisdiction and are subject to change without notice. SALT Shield™ and Financed Interest are subject to eligibility requirements and applicable terms and conditions. All examples are illustrative only and do not represent a guarantee of outcomes. Borrowing against collateral entails risk. Consult a qualified professional before implementing any financial strategy.
