Crypto Borrow

You can borrow the same assets that are supported as collateral for margin trading are available for borrowing: ADA, APE, AVAX, BCH, BTC, DOGE, DOT, EOS, ETH, LINK, LTC, MATIC, NEAR, SHIB, SOL, TRX, USDC, USDT, XLM, XRP. Fiat assets are not available for borrowing at the moment, but you can always exchange cryptocurrencies for fiat.

Number of loans by different assets are not limited. New loans become unavailable only if there is insufficient collateral on the Collateral Balance.

To secure the loan, the total amount of assets on the Collateral Balance, as well as all open margin and futures positions with a positive P&L (Profit & Loss) value is used. Fiat assets are not supported to secure a loan.

The number of assets available for borrowing is determined proportionally by free pledge — the amount of unallocated Collateral Balance funds not used to support positions or loans. A collateral equivalent is required for any amount of the loan asset and depends on account leverage. Account leverage determines a maintenance margin fraction ratio between 50% (1x leverage) and 2.5% (10x leverage). Increasing account leverage would allow you to borrow more funds, up to the almost equal amount on the market. However, it is connected with additional risks, such as position liquidation. In that case, it is really important to check the account risk score and add more funds to the collateral balance to avoid liquidation. Open margin and futures positions impact the amount of free pledges: the larger the positive value of PnL (Profit & Loss), the more is available for borrowing.

The loan has no time limits if there are enough funds on the Collateral Balance to secure the loan.

The dynamic fee for the use of borrowed funds (funding) is 0.0585% per day and is charged per second in the loan currency. You can return the loan at any time after its opening by replenishing the Collateral balance of the loan asset.

The percentage of the Margin Fraction scale shows the ratio of the unused funds of the Collateral Balance in relation to the funds involved to support margin trading positions or open loans. This indicator displays solvency within the framework of the Collateral balance. If the value is zero, opening a loan is impossible, because there are no secured funds on the balance sheet. A value of 100%, on the contrary, means that the entire Collateral Balance can be used as collateral for taking out a loan because all the funds on the balance are not used for loans or positions. The scale itself with colored marks indicates the degree of risk of taking a loan and reflects the approach to liquidation, taking into account existing open positions and the selected leverage value.

Liquidation occurs when 50% of personal funds in the position are lost (excluding leverage). Only assets that are secured on the Collateral Balance in the amount necessary to cover the loan amount in USDT equivalent are liquidated. As a result of the automatic sale of collateral assets at the current market price, the borrowed funds are returned to normalize the balance. Other user balances are not affected in any way by the liquidation.

If there is a risk of liquidation of the loan collateral, when the amount of free margin becomes less than the minimum, the User receives a Margin Call message by e-mail. A Margin Call occurs when you lose 25% of your personal funds in a position (excluding leverage). Please note that Margin Call also cancels active limit orders to increase the price.

Liquidation is the process of automatically selling collateral assets on the Collateral Balance sheet at the current market price in order to recover borrowed funds. The liquidation price is the estimated price of the borrowed asset in the market in the equivalentUSDT, upon reaching which liquidation of the loan is expected. For USDT, it is not possible to calculate the liquidation cost. For a given asset, the liquidation occurs in relation to the market price of the allowance, not the price of the borrowed asset itself.

The negative balance is displayed for convenience in order to indicate to the User that there is an open loan. A negative balance does not limit the possibility of opening margin and futures positions for a borrowed asset, if there are unused funds on the Collateral balance (plus value of free margin). If you transfer an asset with an open loan to the Collateral Balance, the loan will be partially or completely repaid depending on the amount of the transfer.

Margin and futures positions can be opened for any asset, as long as unused funds are available on the Collateral Balance (plus free margin).

Loan liquidation is part of the overall account liquidation process in the risk management system, i.e. the system automatically determines the margin positions and the loan to be liquidated, and they are liquidated one by one by the time the Collateral Balance is normalized and the necessary conditions are met to bring the account out of liquidation. This means that some positions or loans may remain open when the account comes out of liquidation.

The use of the assets of the Collateral Balance is not limited in any way as long as the free margin indicator is greater than zero, that is, when there are unused funds on the balance that are not used to support positions and loans. In a situation where assets become insufficient to provide, Margin Call occurs.

For borrowed assets, the same actions are available as for assets on the General Balance (sale, transfers, withdrawal,crypto deposit).

To repay the loan, it is necessary to replenish the Collateral Balance by the amount of the debt in the same borrowed currency.

You can increase the leverage value if the free margin remains greater than zero (plus the amount of unused funds) when changing leverage. Otherwise, a message about insufficient funds on the Collateral balance is displayed.