General Information
What Are Crypto Loans?
Crypto Loans provide overcollateralized borrowing solutions for liquidity needs while allowing users to retain their cryptocurrency holdings. These loans come in two formats:
- Flexible Rate Loans (floating interest, hourly compounding)
- Fixed Rate Loans (locked rates, predetermined terms)
Key Differences Between Loan Types
| Feature | Flexible Rate Loans | Fixed Rate Loans |
|---|---|---|
| Interest Model | Variable, hourly-adjusted | Fixed at order confirmation |
| Term Flexibility | Open-ended | 7-180 day terms |
| Repayment Options | Manual partial/full repayment | Auto-repayment at maturity |
| Grace Period | N/A | 24-hour overdue window |
| Best For | Short-term needs | Predictable cost structure |
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Borrowing Process
Eligible Collateral Assets
Supported cryptocurrencies include:
- BTC
- ETH
- USDT
- +20 other major coins
Borrowing Limits Calculation
Your maximum loan amount depends on:
- Collateral value (mark-to-market pricing)
- Asset-specific LTV ratios
- Platform-wide borrowing caps
Note: Limits are shared across all loan types and subaccounts.
Interest & Repayment
How Interest Accrues
Flexible Loans:
- Hourly compounding
- Rate fluctuates with market conditions
Fixed Loans:
- Interest locked at inception
- No refunds for early repayment
Repayment Options
Manual Repayment:
- Partial payments allowed (flexible loans only)
- Full repayment anytime
Auto-Repay (fixed loans only):
- System deducts from funding account at maturity
- Requires sufficient balance
Risk Management
LTV Ratios Explained
| Threshold | Level | Action Required |
|---|---|---|
| 85% LTV | Warning | Add collateral/repay loan |
| 92% LTV | Liquidation | Automatic position closure |
Cross-margin mode applies - all collateral backs all loans.
FAQ Section
Common Borrower Questions
Q: Can I use borrowed funds for trading?
A: Yes, no restrictions on usage - including spot/derivatives trading.
Q: How often are interest rates updated?
A: For flexible loans - hourly. Fixed loans maintain locked rates.
Q: What happens if auto-repayment fails?
A: The loan enters grace period with 3x penalty interest until resolved.
Lender Concerns
Q: When do suppliers receive payments?
A: On the scheduled settlement date, including:
- Principal
- Agreed interest
- Any penalty fees (if applicable)
Q: Can lenders withdraw early?
A: No - funds remain locked until loan term completion.
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Best Practices
Collateral Management:
- Regularly monitor LTV ratios
- Add collateral during market dips
Interest Optimization:
- Compare flexible vs. fixed rates
- Consider loan purpose timeframe
Risk Mitigation:
- Set calendar reminders for maturity dates
- Maintain buffer above margin call levels
For detailed guides, refer to platform educational resources.