What are the risks of a crypto-backed mortgage?

Crypto-backed mortgages carry real volatility risk, since a loan secured partly or fully by cryptocurrency can trigger a margin call or forced liquidation if the collateral's value drops sharply. These products are still uncommon and thinly regulated compared to conventional mortgages, so a borrower has less consumer protection if something goes wrong with the lender or the collateral arrangement. Traditional mortgage lenders and most conforming loan programs still do not accept cryptocurrency as qualifying income or reserves the way they do a bank account. Anyone considering this route should talk to a mortgage professional and an attorney before signing, not just the crypto lender.