Once you're pre-approved, you choose the amount of bitcoin to be purchased (called the initial investment amount) subject to limits based on your equity and mortgage balance.

Sovana uses our own money to buy that amount* of bitcoin (called the bitcoin stash) and places a subordinate lien on your property for that same amount to secure your ability to cover any potential loss at settlement time.

* less origination costs (see example and FAQ for details)

The bitcoin stash sits safely with our custodian—it's not leveraged, lent, or touched. Because the Sovana BIP is not a loan, there are no monthly payments, no interest, and no margin calls regardless of fluctuations in the value of the bitcoin stash or your property. You simply maintain your property as you would normally (keep up with any existing mortgage, insurance, property tax obligations, etc.).

You can choose to settle the BIP at any time for any reason without penalty. However you're required to settle the BIP when you sell the property or at the end of 10 years.

At settlement time, if the value of the bitcoin stash has...

• increased, you get paid 50% of that increase
• decreased, you must pay Sovana the amount of the decrease

To secure your payment in case the bitcoin stash has dropped in value at settlement time, Sovana places a subordinate lien on your property at the start of the BIP.

If you owe money at settlement (which is only possible if the bitcoin stash has decreased in value), you're generally expected to pay in cash or use other resources. If you can't pay, the lien gives Sovana the right to recover against your property's equity.