1.What is mortgage rate?
The mortgage rate refers to the ratio between loan principal and the market value of mortgaged digital currency. It is reasonably formulated and floated according to the price fluctuation range and trend of the digital currency. Therefore, the mortgage rates corresponding to different loan currencies may be different.
For example, if the borrower wants to borrow 70,000 USDT, the mortgage rate is 70%, he needs to mortgage digital currency with the market capitalization of 100,000 USDT.
When 58B is mortgaged for making a loan, it is calculated according to 58B base set by the platform, for other coins, loans are calculated according to index prices, and these index prices are from the last prices of five exchanges including Binance, Huobi Pro, Bitfinex, GDAX, Bitstamp. The index price will affect the maximum loan amount and mortgage rate of the loan order.
2.How is the maximum loan amount calculated?
Maximum Loan Amount/ Available Amount (mortgaged coin)/ Index Price/ Loan Mortgage Rate
For example: Mortgage BTC to loan USDT, current index price of BTC/USDT is 7,000, available BTC is 1, loan mortgage rate is 70%
Max USDT Loan Amount = 1 * 7000 * 70% = 4900
How long can the borrower get the loan after mortgaging the digital currency to the platform?
The loan needs to be reviewed and generally takes 2 hours.
3.How is interest calculated?
Interest is calculated on the day passing the loan review, and then the interest is calculated at 00:00 (UTC +8) of each natural day. If the loan is less than a day, the interest is calculated as a day.
If you want to repay in advance, you need to repay all realized and unrealized interests.
For example, you loan 10,000 USDT for 30 days with the daily interest rate of 0.02%, if you repay on the 10th day of the loan, then the interest you need to repay is: 10000 * 0.02% * 30 = 60 USDT.
4.What if the borrower fails to repay the loan?
For overdue repayment, overdue interest is calculated on overdue interest rate.
Can I transfer out some of the m
5.Can I transfer out some of the mortgage asset when it appreciates?
Yes, when the value of the mortgage asset rises, the platform supports the user to transfer out part of it, but with a limit amount. This is to prevent the occurrence of liquidation after transfer.
6.What is the alert mechanism for closing positions?
When the mortgage rate reaches 80% of the alert mortgage rate (rate may be different for each loan currency). Due to the large fluctuations in the price of digital currency, or any other reasons that resort to the value of the collateral is less than or equal to the amount of the alert line during the loan period, the borrower will be regarded as triggering the alert line. The platform will inform the borrower via SMS to make up the mortgage or repay the loan in advance.
7.What is the liquidation mechanism?
When the mortgage rate reaches the liquidation mortgage rate set by the platform, the platform will deduct all the mortgage assets of the loan to repay the borrower's unpaid loan amount and interest. Liquidation will not involve any assets other than the mortgage assets.