Horizon offers a new way to access home equity without taking on a loan, monthly payments, or interest. Instead of debt, you receive cash today in exchange for a share of your home’s future value. This structure gives you flexibility to reallocate that capital—often into bitcoin—but it does come with important risks to understand.
1. Bitcoin market risk
Many users choose to use Horizon funds to buy bitcoin. Like any investment, bitcoin carries risk. If bitcoin loses value or underperforms your home’s appreciation over time, the outcome may be less favorable than expected.
If bitcoin appreciates more than your home, you may come out ahead.
If bitcoin declines, you may incur losses—even though Horizon never touches your bitcoin and has no claim on it.
We strongly encourage you to use our calculator to test different scenarios, including changes in bitcoin price or home value, so you can see the potential outcomes and risks clearly.
2. Giving up a portion of your home’s future value
Horizon is not a loan. You are not borrowing money—you are selling a capped share of your home’s future value. The provider’s share grows over time and is limited to a maximum (currently 22.5%, or 2.25x the initial investment). You settle the agreement when you sell, refinance, or choose to buy it out.
If your home appreciates significantly, the amount owed to the provider will reflect that growth—up to the capped limit. The tradeoff is straightforward: you’re exchanging a piece of your home's future value for liquidity today.
3. Early exit costs vs. long-term holding
If you settle the agreement early—before the provider’s share reaches its cap—your effective cost may be higher. This is because the provider’s stake increases gradually over time until it hits that cap, after which your annualized cost begins to decline.
Holding longer can reduce your effective annualized cost.
Settling early may result in a higher cost depending on timing.
This structure gives you full control over when you choose to exit, and may be more beneficial to long-term holders.
4. Foreclosure risk
Although Horizon is not a loan, the agreement is secured by a lien. If the home equity investment is not settled at the time of sale, refinance, or title transfer—and no resolution is reached—the provider may initiate foreclosure as a last resort. This is extremely rare and only pursued after all other options have been exhausted.
There are no monthly payments or interest, so traditional default scenarios involving these don’t apply.
Foreclosure would only occur if you refuse to settle your contractual obligation.
5. Terms are subject to change for future users
The current capped return and fee structure—such as the 12.99% annualized cost cap and 22.5% maximum stake—are based on the terms set by Horizon’s preferred provider. These may change for future users, but your terms will be clearly disclosed and fixed once your agreement is written and signed.
Summary
With Horizon, you are not taking on new debt. You are giving up a share of your home’s future value in exchange for cash you can use today—often to buy bitcoin. There are no monthly payments, no interest, and no risk of bitcoin liquidation due to bitcoin price volatility. But as with any financial product, there are tradeoffs.
Before moving forward, use our calculator to model different outcomes and understand how bitcoin price and home appreciation can impact your results, and take the time to determine whether this approach fits your goals.
Disclaimer: Horizon is a technology company that helps users buy and custody their Bitcoin and does not directly provide financial or investment services. Horizon connects homeowners with licensed home equity investment providers but does not act as an agent or broker for the homeowner or any third party. Homeowners should consult their financial, tax, or legal advisor before making any investment decision. For additional information, please refer to our FAQ, terms and conditions, and our preferred providers' websites.