Mortgage Loan was officially launched on July 16, 2018. Here is a beginner’s guide for you.
What is Mortgage Loan?
It is a cryptocurrency-based lending method that requires the borrower to provide a certain amount of digital currency as the loan guarantee to ensure the due repayment of the loaned coins and interest. If the borrower triggers the liquidation line, the platform may have the right to deduct the mortgaged digital currencies.
You may wonder about the use scenarios.
What are the use scenarios for mortgage loans?
Investors already have a certain amount of digital assets, seeking to maintain the existing digital assets, while:
1. Planning to convert to funds to carry out capital turnover;
2. Trying to trade another digital asset;
3. Scaling in to achieve accumulated earnings.
Let’s take a look at the applying process.
1. Click on www.58ex.com and log in to the 58COIN account.
Note: If you have not registered yet, remember to click “Sign Up” and complete the registration.
2. After login, click on “Account”–“ID Verification” in the upper right, and complete basic and advanced verifications in order. Upon the completion of which can enter the formal mortgage loan process.
3. Click on “Mortgage Loan”on the homepage to enter the mortgage loan page.
4. Transfer the mortgaged assets to the “Mortgage Account”. In the mortgage page, click “Transfer-in”, select the currency to mortgage and it will be transferred to “Mortgage Account”from another account (like Deposit & Withdraw Account), enter the amount and click on “Transfer”. Here takes “mortgage BTC to loan USDT”as an example.
5. After the mortgaged assets are transferred in, a loan application is available. In the mortgage loan page, enter the loan amount within the limit of the “Max Loan Amount” and enter the loan period in “Duration”, then a daily interest rate will be displayed synchronously below. After clicking on “Apply”, a loan application will be submitted successfully. Please be reminded that the mortgaged assets will be frozen after submitting the loan application, and it usually takes 30 minutes to complete the review. Click on the “Reviewing” below to see the detailed information. After the approval, the loan will be transferred to the “Mortgage Account”.
1) Max Loan Amount = Available Amount (Mortgaged Coin) * Index Price * Mortgage Rate. The index price is taken from Huobi Pro and Binance with a weight of 30% and 70% accordingly. Investors do not need to worry about market manipulations.
2) The platform provides five loan period choices in “Duration”, including 3 days, 7 days, 30 days, 60 days, and perpetual. The daily interest rate is subject to changes due to the varieties in coin type and loan periods. For the overdue repayment before the liquidation, interest is calculated according to the overdue interest rate. Please click “Mortgage Rate”, “Daily Interest Rate” on the left to see the details.
3) The minimum loan amount varies against the specific loan type, for the details, please refer to “Note” below before placing an order.
6. After the loan is approved, click on “Current Loan” below to see the loan amount, interest, mortgage rate, and other information. Meanwhile, investors should pay attention to risk. When the Mortgage Rate ≥ alert value (varied against specific coin type), the platform will inform the borrower by SMS to add mortgaged assets or repay in advance, and such operation can be completed by clicking on “Add” or “Repay” on the right. When the Mortgage Rate ≥ liquidation value (varied against specific coin type), the liquidation process will be triggered. The detailed operation records can be viewed in “History”.
1) Currently, only full repayment is supported.
2) The interest-bearing starts from the day upon the approval of the loan application. Any time less than 24 hours will be considered as one day. Please reminded that all the realized and unrealized interests need to be repaid if users choose to repay in advance.
3) Loans can be used optionally in various trading areas or between platforms.
7. If to repay, please click on “Wallet” in advance and transfer the pending repayment from other accounts to “Mortgage Account”, then enter the mortgage page and click on “Current Loans” – “Repay” – “Confirm Repayment”., meanwhile, the mortgaged assets will be unfrozen.
All the above-mentioned is the whole mortgage loan application process.
For more details, please join the official community!