I've been reading this #1424956 yesterday and curious to know more about how wealthy people, families and businesses structure their assets to gain from the system.

This video seems explaining it really well: an important aspect to remember when playing with these tools is about asking ourself honest questions and evaluate if are really solving our problems of possibly adding more issues for our future.

Bitcoin Katie outlines several important questions that one should consider before borrowing against Bitcoin for fiat. Here are those key questions ^{with {timestamps}}:

1. Are you borrowing against a very small portion of your total net worth? ^{16:23}
2. Have you modeled what you believe could be a worst-case scenario? ^{16:29}
3. What is the process for a margin call? ^{16:32}
4. How long will you have to top up? ^{16:39}
5. Do you have access to other assets or the means to add collateral if you receive a margin call? ^{16:42}
6. Are you using the borrowed money for something productive? ^{16:51}
7. What are the tax implications of being liquidated? ^{16:53}
8. Can you achieve the same thing without risking your Bitcoin? ^{17:04}
9. If your Bitcoin was liquidated, how far would you be set back? How long would it take to reach the same position again? ^{17:13}
10. Are you genuinely comfortable with the idea of potentially losing your collateral? ^{17:24}

These questions help assess the risks you could face and ensure a more informed decision when considering borrowing against Bitcoin. Think twice before signing any contract, ask for help and suggestions otherwise you will most probably end up loosing your stash.