Nexo’s “Zero-interest Credit” – How To Borrow With No Liquidation Risk

For years, crypto-backed borrowing has had a tradeoff:

You can borrow against $BTC or $ETH – but you’re basically signing up to babysit your LTV like it’s a Tamagotchi.

One nasty wick down, and suddenly you’re topping up collateral, getting margin-called, or (worst case) liquidated at the exact wrong moment.

Nexo’s new Zero-interest Credit (ZiC) is trying to kill that whole stress loop.

It’s a fixed-term loan against $BTC or $ETH with no yearly interest or fees – and no margin calls or mid-term liquidations.

But how the hell does that all work??

Let’s break it down:

The Simple Idea

With a regular crypto loan, your collateral is at the mercy of the market.

One big dip, and you’re liquidated – often at a terrible price.

But with Zero interest Credit, you’re not managing an “open” credit line that can blow up if the market dips.

Instead, ZiC works like a credit contract with clearly defined outcomes:

1. You deposit $BTC or $ETH as collateral
2. You choose the:
   • Loan amount
   • Term length (14 days up to 12 months)
   • Stablecoin you receive ($USDC or $USDT)
   • Repayment price range (more on this below)
3. You get liquidity without selling your $BTC or $ETH
4. At the end of the term, it settles based on where price lands. OR, if you want to stay in the position, you can also roll the credit into a new term without unlocking your collateral.

No daily LTV panic. No surprise liquidation.

How ZiC’s Price Protection Actually Works (In Simple Terms)

Zero-interest Credit isn’t just a loan – it’s a loan with boundaries.

Instead of leaving everything open-ended and risky, ZiC asks you to decide in advance what “too low” and “good enough” look like for your $BTC or $ETH.

What does that mean?

You set:

• a Minimum Repayment Price (your downside floor), and

• a Maximum Repayment Price (your upside target).

When the repayment date comes around:

• If the price sits between them – you can repay with stablecoins and keep your crypto, or just roll the loan forward.
• If the price is below your minimum – the loan settles at that floor, protecting you from deeper losses.
• If the price is above your maximum – your crypto is sold at that level, locking in gains.

You get cash today, and clear, pre-agreed outcomes tomorrow.

That means there’s no liquidation stress and no emotional decision-making later.

ZiC vs Nexo’s Classic Credit Line

You can think of Nexo’s ZiC as the “predictable” option, while their normal Nexo Credit Line remains the “flexible” option.

Here’s how the look, side-by-side:

ZiC also fits a bigger shift in crypto lending…

Global crypto-collateralized borrowing hit $73.6B in Q3 2025, with most of it backed by $BTC and $ETH.

As the market grows up, people are looking for simpler, more predictable credit – not constant liquidation risk.

So Who Is ZiC Good For, And What Are The Risks?

ZiC makes the most sense if you fall into one of these 4 categories:

1. Long-term $BTC or $ETH holders who want liquidity but don’t want to sell
2. People trying to avoid selling-triggered tax events (depending on your jurisdiction)
3. Anyone funding a big purchase and wanting a defined settlement plan
4. More conservative users who don't like the “liquidation roulette” vibe.

Sound like you?

If so, there are also a few things you should remember before jumping into a ZiC position – the risks and possible downsides.

ZiC gets rid of liquidation stress during the term – but it doesn’t delete risk altogether…

First off, if $BTC or $ETH goes up past your Maximum Repayment Price, your crypto can be sold at that level – so you’re agreeing up front to put a cap on your upside.

Second, if the price ends below your Minimum, the loan can be settled using your crypto instead.

And last but not least… Remember that this is still centralized lending.

At the end of the day you’re trusting Nexo to hold and manage your assets – rather than holding onto them yourself.

Want To Try Zero-interest Credit?

If you’ve had some close calls with crypto-backed loan liquidations before, or that’s what’s been putting you off, it might be time to try ZiC.

Borrow against $BTC/$ETH at 0%, with rules you define upfront, and no mid-term liquidation drama.

Finally, you can get liquidity without the stress – try Nexo’s Zero interest Credit today.