If you have a Bitcoin-backed loan on Firefish or are planning on taking one out soon, you need to know about loan rollovers. This could be the difference between rushing to repay a loan or having the freedom to extend your loan and even benefit if Bitcoin appreciates.

With a Bitcoin loan rollover, you can benefit both from the potential long-term appreciation of Bitcoin and from the inevitable depreciation of fiat currencies.

This article will walk you through the mechanics of loan rollovers for Bitcoin-backed loans, their advantages, risks, and key considerations before you decide if rolling over is the right move for you.

What is a loan rollover?

A loan rollover gives you the option to push your repayment date further into the future. It’s an extension with the same or similar payment terms.

Rather than repaying your loan once the period is over, you can take out a new loan which covers your original, unlocking your Bitcoin collateral.

This gives you more flexibility in case you can’t repay the original loan by its maturity date, or you want more options for living off your Bitcoin. Firefish currently supports loans up to a maximum of 24 months, but with a loan rollover you can extend beyond this time.

Why get a Bitcoin-backed loan rollover?

There are 3 common reasons you might want to rollover your loan:

1. You want to extend your loan over a longer repayment period because the terms have worked out well for you.

2. You’re unable to repay the loan on time with cash and don't want to sell/liquidate your Bitcoin or other assets to repay it.

3. If Bitcoin has increased in value, you might want to benefit from that by pushing back your repayment. It gives you more flexibility to live off your Bitcoin, on your terms, in a changing market.

Yes, you read number 3 correctly.

In theory, you could avoid repayment entirely if Bitcoin continues to appreciate in value because you might be able to secure a larger loan in the future without having to add additional collateral.

Are there risks to loan rollovers?

Yes, as with any financial instrument, loan rollovers carry real risks, if not managed well. Rolling over a loan can create a cycle of debt if repayments become unmanageable, especially in volatile markets. It is for reasons like this that Firefish maintains a 50% loan-to-value (LTV) ratio to promote responsible borrowing.

However, there are some useful ways to mitigate risks with Bitcoin loans on Firefish in general:

• Monitor your Collateral Health Indicator (CHI) on Firefish to track your loan’s risk level.

• Be aware of margin call thresholds:

  • 80% LTV: CHI at 33%

  • 85% LTV: CHI at 22%

  • 90% LTV: CHI at 11%

• Top up collateral promptly during market dips to avoid liquidation, or send more Bitcoin than requested right from the start

TL;DR: Always monitor your risk and your loans to enjoy the freedom that living of Bitcoin can allow.

How does getting a loan rollover work with Firefish?

Let’s walk through a simple example using a 12-month loan and assuming a conservative 30% annual increase in Bitcoin’s price (historically, Bitcoin’s CAGR has been closer to 70%, but let’s keep it modest).

Suppose you lock 0.2 BTC as collateral and borrow €10,000 for one year. At the end of the term, your repayment amount is about €10,600 (principal + 6% interest).

Now, you opt for a rollover.

Here’s the key: after 12 months, if Bitcoin has appreciated by 30%, 0.2 BTC collateral is now worth 30% more in euros. That higher valuation allows you to unlock a new loan against the same 0.2 BTC, not more, and still cover your old loan plus potentially receive extra funds.

With the proceeds of the new loan, you first repay the original €10,600, which releases your old collateral. The remainder from the new loan (after covering repayment) stays with you as usable funds.

Effectively, you keep rolling your loan forward while your collateral base (your BTC) keeps working for you — and potentially growing in value.

If you repeat this process year after year, your borrowing power grows as Bitcoin appreciates. You don’t need to sell your Bitcoin, and you don’t necessarily need to add more collateral (as long as you start with a safe margin to protect against volatility).

Think of it this way:

• Dedicate a fixed portion of your Bitcoin stack (say 10%).

• Treat that slice as “sold,” meaning you’ll live off it through loans, not by liquidating.

• Continuously roll over loans against that collateral, effectively shorting fiat while staying long Bitcoin.

Over time, as fiat currencies lose value and Bitcoin trends upward, you’ll be able to finance your life from a growing stream of loan rollovers. Even if at some point you do repay in fiat, it will almost certainly be a better outcome than having sold your Bitcoin years earlier.

Note: Of course, risk remains. Bitcoin can experience sharp temporary drops. That’s why overcollateralization and monitoring your Collateral Health Indicator (CHI) is critical. Choosing longer loan terms (like 24 months) also helps reduce the risk of being forced to repay or rollover during a downturn.

A new financial future for Bitcoiners

We see Bitcoin-backed loans as a future-proof investment and loan rollovers are part of making the new financial system work for you:

✅ Avoid taxes from selling Bitcoin

✅ Live off you Bitcoin with easy to request loans (apply in 10 minutes)

Never sell your Bitcoin. Never miss the benefits of HODLing.

New to Bitcoin-backed loans? Learn the basics here.

Common FAQs

• Can I set up automatic loan rollovers on Firefish?

While Firefish doesn’t currently support automatic loan rollovers, it’s straightforward to process manually through your account dashboard.

• How close to the maturity date can I rollover my loan?

We recommend rolling over your loan 1 month before maturity to avoid any repayment issues or unexpected delays.

• Is there a limit on how many times I can rollover a loan?

No, you can technically rollover a loan as many times as you want, but the loan size will vary each time as the price of Bitcoin changes (you may be able to secure a similar loan for less collateral).

• What happens to my Bitcoin collateral during a loan rollover?

The process is the same as a regular loan repayment. Your Bitcoin will be unlocked and sent to your return address within 72 hours after the investor confirms they have received their investment (Amount Due) back.

• If my locked Bitcoin collateral increases in value, can’t I receive more loans on it?

This feature is not available yet, but we are working on getting this added.