December 4, 2025
Altitude Finance is built as a non-custodial protocol. This means users retain full ownership and control of their assets at all times. The protocol’s automation and optimizations operate on-chain through smart contracts. This article explains what non-custodial means in practical terms, how Altitude implements it, and why it matters for borrowers.
In a non-custodial system, assets are never held or controlled by the company operating the protocol. Users interact with contracts directly from their wallets, and the contracts enforce all rules for collateral, loans, yield allocation and risk management. The team cannot move or withdraw user assets or use collateral for external purposes. All positions exist on-chain and remain accessible to the user regardless of the protocol’s operational status.
When a user deposits collateral, the assets are placed in a vault contract that belongs to the user’s wallet. Ownership never transfers to Altitude.
Borrowing occurs when the vault contract interacts with underlying lending markets like Aave or Morpho. The collateral and debt positions are attributed to the user, not to Altitude itself. The protocol acts as an execution layer, not a custodian.
Unused collateral can be allocated into predefined yield strategies. These allocations follow strict, audited rules and operate entirely on-chain. Each step is visible and verifiable. Strategies do not introduce custody; they simply adjust the user’s on-chain position via smart contracts.
Automations monitor loan-to-value ratios, execute rebalancing and apply safety thresholds. These mechanisms operate within the vault contracts. The logic is deterministic and rule-based.
All positions, interactions, and yield flows are recorded on-chain. Users or independent observers can verify the system at any time. There is no off-chain component affecting custody.
Users can repay loans, close positions, and withdraw collateral directly through the contract according to the rules of the contract. No approvals or intermediaries are required.
All processes such as rebalancing, LTV adjustments, and yield deployment follow published smart-contract logic.
Automation executes risk-related actions without waiting for human involvement, which is important during periods of market volatility.
Altitude’s non-custodial architecture ensures users maintain continuous ownership and control of their assets. The protocol provides automation and optimization, but it does so without ever taking custody. This structure offers borrowers a transparent, verifiable, and resilient way to access liquidity against long-term BTC or ETH holdings while maintaining direct control of their collateral.