> For the complete documentation index, see [llms.txt](https://docs.btcd.fi/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.btcd.fi/the-vaults/btc-vault.md).

# BTC Vault

| Property            | Value                                                                                                                       |
| ------------------- | --------------------------------------------------------------------------------------------------------------------------- |
| User deposits       | BTC (e.g. wBTC, cbBTC; specific support TBD)                                                                                |
| sBTCD as collateral | Yes                                                                                                                         |
| Borrowed asset      | USDC                                                                                                                        |
| Target LTV          | 50%                                                                                                                         |
| Net exposure        | BTC-denominated, BTC-long                                                                                                   |
| Receipt token       | bdBTC — represents the user's share of the BTC Vault.                                                                       |
| Target net yield    | \~8% (BTC-denominated yield, lower than USD Vault APY because USD borrow rates are typically higher than BTC borrow rates.) |

### Rebalancing logic — BTC Vault

When BTC price rises: sBTCD collateral value rises in USD terms; LTV falls. The vault re-leverages by borrowing more USD and converting it into sBTCD.

When BTC price falls: sBTCD collateral value falls in USD terms; LTV rises. The vault deleverages by selling sBTCD, acquiring USD, and repaying USD debt.

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