Question 1

How is my Bitcoin actually secured?

Accepted Answer

Your Bitcoin is locked in a Taproot vault, a dedicated script on the Bitcoin blockchain. It's not held in a database, an omnibus wallet, or by Surge. Each vault is segregated and verifiable on-chain. You can inspect it anytime.

Question 2

What happens if Surge goes down or disappears?

Accepted Answer

Every vault includes a unilateral exit path. If you've repaid your credit line and Surge or the lenders fail to release your collateral, you can reclaim your Bitcoin independently. No permission needed. It's enforced by Bitcoin, not by Surge's uptime.

Question 3

How do I verify my collateral on-chain?

Accepted Answer

Your vault has a specific Taproot address on the Bitcoin blockchain. You can verify it using any block explorer or directly inside your Surge dashboard. The script paths, collateral amount, and vault policies are all inspectable.

Question 4

Who controls the keys to my vault?

Accepted Answer

You hold your signing keys. The credit policies governing the vault are managed by the Distributed Custody Network, a threshold signing system. Surge alone cannot move your Bitcoin.

Question 5

What is the Distributed Custody Network?

Accepted Answer

The DCN is a threshold network using institutional-grade MPC-TSS cryptography. It governs credit policies like liquidation and collateral release across distributed signers, no single point of control. It's the result of years of cryptographic R&D.

Question 6

What do you mean by Taproot vaults?

Accepted Answer

A Taproot vault is a dedicated Bitcoin script built using Taproot, Bitcoin's native smart contract capability. Each vault is a unique on-chain address with defined spending paths for collateral management, liquidation, and unilateral exit. It's not a wallet or an account, it's a programmable vault on the Bitcoin blockchain that you can verify yourself.

Question 7

How is this different from a Bitcoin loan?

Accepted Answer

A loan gives you a fixed amount with fixed terms and a repayment schedule. A credit line is revolving, draw what you need, repay when you want, re-borrow without reapplying. Add or remove collateral anytime. No rigid contracts.

Question 8

What happens if I get liquidated?

Accepted Answer

Your health meter shows your risk in real time. If your LTV rises above 90%, liquidation can trigger - and it's visible on-chain. Before that, Surge notifies you at every stage via email and push notifications so you can add collateral or repay. At 50% LTV, you have significant buffer.

Question 9

Why does Surge use Base blockchain?

Accepted Answer

Surge uses Bitcoin for what Bitcoin does best, securing collateral in Taproot vaults. But credit lines need stablecoin infrastructure, lending pools, yield distribution, and fast settlement. Base provides that layer cleanly: low fees, fast finality, and native USDC support. No governance tokens, no DeFi ponzinomics. Surge uses Base purely as financial plumbing for stablecoins, not as an ideological commitment to another chain. Your Bitcoin never leaves Bitcoin.

Question 10

Can I add or remove collateral after opening a credit line?

Accepted Answer

Yes. Anytime. Your credit line is fully flexible, add Bitcoin to improve your health, or remove excess collateral when you have room. No requests, no waiting.

Question 11

What are the fees beyond the interest rate?

Accepted Answer

The interest rate is your cost of borrowing. No hidden origination fees, no early repayment penalties. You pay for the time you use the credit, nothing more.

Question 12

How does the variable rate work, what's the worst case?

Accepted Answer

The variable rate follows a kink curve based on pool utilization. At normal utilization it starts from 6.9% APR. At 90% utilization the curve steepens, scaling up to 18% APR. The 6-month average has been around 7.2%. If you want predictability, choose the fixed market at 9.9% APR.

Question 13

How are your rates lower than other platforms?

Accepted Answer

No intermediaries stacking fees. Surge connects borrowers directly to a decentralized pool of lenders competing for yield. Lender competition pushes rates down. No banks, no brokers, no overhead passed on to you.

Question 14

You offer credit at lower cost, how is that sustainable?

Accepted Answer

The protocol is efficient by design. No custody infrastructure to maintain, no banking licenses to service, no middlemen to pay. The cost savings from non-custodial architecture pass directly to borrowers as lower rates.

Question 15

Where does the yield come from?

Accepted Answer

From borrowers paying interest on their credit lines. Every dollar of yield is backed by Bitcoin collateral locked in Taproot vaults. It's real economic activity, not tokenomics or incentive programs.

Question 16

Is my USDC locked? Can I withdraw anytime?

Accepted Answer

No lock-in by default. You can withdraw based on pool availability. For instant liquidity, a secondary market is available. Your capital stays flexible.

Question 17

What happens if a borrower defaults?

Accepted Answer

The Bitcoin collateral backing the credit line is liquidated. The multi-step oracle system ensures liquidation triggers reliably, at the EVM contract level and at the DCN level. Lender principal is protected by the collateral buffer.

Question 18

What's the secondary market?

Accepted Answer

It's a marketplace where you can exit your lending position before the underlying credit is repaid. Instead of waiting for pool availability, you can sell your position to another lender. Instant liquidity, no lock-in.

Question 19

Is Surge available in my country?

Accepted Answer

Surge is globally accessible. As a non-custodial protocol, there's no geographic gating by default. Certain upcoming features like ACH transfers and debit card spending may be limited by region based on banking partner availability.

Question 20

Is Surge regulated?

Accepted Answer

Surge operates as a non-custodial protocol, it never holds user assets. Upcoming fiat services like ACH and debit card are provided through regulated banking partners. The protocol architecture is designed to minimize regulatory surface while maintaining compliance where required.

Question 21

Does Surge have a token?

Accepted Answer

No. Because tokens typically serve investors, not users. They create misaligned incentives, extracting value through inflation, governance theater, and speculative arbitrage instead of building a product that works. Surge earns through protocol fees from real economic activity: borrowers paying interest, lenders earning yield. No token means no dilution, no airdrop farming, no artificial demand. Just a protocol that has to be good enough to sustain itself.

Question 22

How do I contact the team?

Accepted Answer

Use the contact form below. We're an early-stage team and genuinely want to hear from you, questions, concerns, partnership ideas. We respond personally.

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