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# Learn

Plain-English answers about borrowing against your Bitcoin on Diamond Hands by GVNR.

## [What is the difference between BTC and wBTC when you borrow against it?](/learn/native-btc-vs-wbtc-borrowing/)

When you borrow on Diamond Hands by GVNR, your BTC stays native on Bitcoin L1, locked as collateral in its own isolated vault, with no wrapping or bridging. wBTC is an ERC-20 token on Ethereum backed by BTC that a custodian holds, so borrowing against wBTC adds custodian, contract and redemption layers on top of the loan itself.

## [How do I borrow against Bitcoin without selling it?](/learn/borrow-against-bitcoin-without-selling/)

You lock your BTC as collateral, borrow against it and keep your BTC position throughout the loan. On Diamond Hands by GVNR, the BTC stays native on Bitcoin L1 in its own isolated vault. You borrow UCD, a Bitcoin-backed stablecoin, for a one-off 3% fee over a 12-month term. Repay, and your BTC is withdrawable after 6 Bitcoin block confirmations.

## [Is the 3% fee on Diamond Hands an APY?](/learn/is-the-3-percent-fee-an-apy/)

No. On Diamond Hands by GVNR, the 3% is a mint fee on the amount you borrow, added to your UCD debt when you mint. It is not an APY or an interest rate, and it does not build up during the term. Borrow 100 UCD and you repay 103 UCD. The term is 12 months, with no early-repayment penalty.

## [Is my BTC rehypothecated on Diamond Hands?](/learn/is-my-btc-rehypothecated/)

No. On Diamond Hands by GVNR, your BTC is never pooled or rehypothecated. Each loan has its own isolated vault address, and the BTC stays native on Bitcoin L1, with no wrapping or bridging. GVNR cannot move your BTC on its own. The only exception is liquidation, when ownership of the BTC is transferred to clear the debt.

## [What happens to my Bitcoin loan if the Bitcoin price falls?](/learn/what-happens-if-bitcoin-price-falls/)

On Diamond Hands by GVNR, a falling BTC price lowers your loan's collateral ratio: the value of the BTC in your vault against the UCD you owe. Below 150%, the loan shows a warning, but nothing is sold and no payment falls due. Action is only taken below 110%, the liquidation threshold. Adding BTC or repaying UCD raises the ratio.

## [What is UCD, the Bitcoin-backed stablecoin?](/learn/what-is-ucd-bitcoin-backed-stablecoin/)

**UCD** is a Bitcoin-backed stablecoin, minted on Diamond Hands by GVNR when you borrow against BTC locked in an isolated vault on Bitcoin L1. You can swap UCD into USDC or USDT, and you repay in UCD to withdraw your BTC. A 3% mint fee on the amount borrowed is added to your debt at mint, for a 12-month term.

## [What is GVNR Diamond Hands?](/learn/what-is-diamond-hands-by-gvnr/)

**Diamond Hands by GVNR** is a self-custodial Bitcoin-backed borrowing protocol at [diamondhands.credit](https://diamondhands.credit/). You lock native BTC in an isolated Bitcoin L1 vault and mint UCD, a Bitcoin-backed stablecoin, up to 66% LTV at opening, for a 3% mint fee over 12 months. Repay to withdraw your BTC after 6 Bitcoin block confirmations. The name is slang for holding through volatility.

## [Where does my Bitcoin sit when I borrow on Diamond Hands?](/learn/where-does-my-bitcoin-sit/)

On Diamond Hands by GVNR, your BTC sits in its own isolated vault address, used for your loan only. It stays native on Bitcoin L1, never wrapped, bridged, pooled or rehypothecated. Diamond Hands is self-custodial: GVNR cannot move your BTC. The one exception is liquidation below a 110% collateral ratio. After repayment, it is withdrawable after 6 Bitcoin block confirmations.