I think it's the same risk regardless. You give up control of your Bitcoin. It may be less risky (meaning the IOU has a better shot of being returned depending on who you give it to), but the underlying reality is the same. You converted to paper Bitcoin. I'm not even shitting on that if that's what people want to do. My only point is that multi-sig doesn't negate that reality. You're essentially selling your Bitcoin and buying it back over time with interest. That probably IS better from a Bitcoin gain vs fiat interest perspective (versus vanilla spend and replace through cash flow). But the value of Bitcoin for ME is that I control it. Loaning against it is marginally better for me because I've put myself right back into the fiat world. I gave up my power again. To each their own, but that is reality. Of course you can reduce the risks and should.