A one-time fee charged by a lender at the start of a loan, typically expressed as a percentage of the loan principal.
A one-time fee charged by a lender at the start of a loan, typically expressed as a percentage of the loan principal. Lygos charges $0 origination fees on all loans. This is a significant differentiator: Unchained charges 2%, which on a $1M loan adds $20,000 to the cost before any interest accrues. Lygos's zero-fee structure means the APR you see is the total cost you pay.
An origination fee is a one-time charge applied when a loan is issued, covering the lender's cost of processing, underwriting, and funding the loan. In Bitcoin-backed lending, origination fees typically range from 0% to 2% of the principal. For large loans, this fee can be substantial: a 2% origination fee on a $1,000,000 loan is $20,000 paid upfront. Some lenders fold origination fees into the loan balance, while others require them separately. When comparing lenders, it's important to include origination fees in the total cost calculation alongside APR.
Lygos charges $0 origination fees on all loans. This is a significant differentiator: Unchained charges 2%, which on a $1M loan adds $20,000 to the cost before any interest accrues. Lygos's zero-fee structure means the APR you see is the total cost you pay.
Unchained charges $10,000 upfront before you receive any funds
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| Lygos | Ledn | Nexo | Unchained | |
|---|---|---|---|---|
| Origination Fee | $0 | 2% admin fee | See fee schedule | 2% |
| APR | 10% | 9.99–11.49% | 2.9%+ (loyalty tier dependent) | 14.18% |
| Min Loan | $50,000 | $500 | $50 | $150,000 |
Understanding Origination Fee is critical when comparing loan offers. This concept directly affects how much you pay, how much collateral you need, or what happens if market conditions change during your loan.
Starting at 10% APR, $0 origination fees, and DLC-secured collateral on the Bitcoin blockchain.