Crypto Borrow

The same assets supported as a pledge for Margin Trading are available within Crypto Borrow: BTC, ETH, USDT, XRP, USDC, ADA, DOGE, SOL, TRX, DOT, SHIB, LTC, BCH, AVAX, XLM, LINK, ETC, ATOM, HBAR, ICP, FIL, APT, ARB, NEAR, OP, GRT, ALGO, SAND, EOS, AXS, THETA, FTM, APE, KAVA, GALA, FLOW, CHZ, SUI, PEPE, ASTR, AR, FLOKI, JASMY, STORJ, TRB. The national currency (fiat) is currently unavailable for loans, but you can always use the Exchange option.

The number of loans is unlimited. New loans become unavailable only if an insufficient pledge on the Collateral Balance exists.

BTC, ETH, USDT, WBT, XRP, USDC, ADA, DOGE, SOL, TRX, DOT, SHIB, LTC, BCH, AVAX, XLM, LINK, ETC, ATOM, HBAR, ICP, FIL, APT, ARB, NEAR, OP, GRT, ALGO, SAND, EOS, AXS, THETA, FTM, APE, KAVA, GALA, FLOW, CHZ, SUI, PEPE, ASTR, AR, FLOKI, JASMY, STORJ, TRB can be used as a pledge. WhiteBIT Coin (WBT) can act as a pledge for a loan, but the asset cannot be borrowed. National currencies are neither available for loans. However, it is always possible to exchange digital assets for national currency. The total amount of assets on the Collateral Balance and all open margin and futures positions with a positive P&L (Profit & Loss) value are used to pledge the loan. Fiat assets are not supported to pledge 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 assets on the Collateral Balance to pledge the loan.

The dynamic fee for using loan funds is 0.0585% per day and is calculated every second in the currency of the loan. You can return the loan at any time after opening it. To complete this, you must transfer funds to the Collateral Balance of the loan asset.

The percentage of the risk scale shows the ratio of the free funds with the Collateral Balance to the funds raised to support margin trading positions or open loans. This indicator reflects the solvency within the Collateral Balance. The value can be between 0% and 100%. 0% means that these funds are free and the borrower is fully solvent, and 100% indicates the complete insolvency of the borrower. As a rule, the value does not reach 100% since liquidation occurs earlier. A scale with colored markings indicates the degree of risk of taking a loan and reflects the approach to liquidation given the available open Loans, margin, and futures positions. The orange sector means the Margin Call zone. The red sector is a zone close to Liquidation.

Liquidation occurs whenever the ratio of the pledge to the loan is about to reach 1:1. Only assets held as pledges 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 pledged assets at the current market price, loaned funds remain at the borrower's disposal. Other balances of the user are not affected by the liquidation.

Certainly! A Margin Call occurs when 25% of the loan pledge is lost. And following the Crypto Borrow Terms, the user receives a Margin Call message by email. Please note that loans and positions are interrelated. If the pledge is insufficient or its value drops, it may lead to the liquidation of both loans and positions.

Liquidation is an automatic sale of pledged assets on the Collateral Balance at the current market price of borrowed funds. The liquidation price is the estimated market price of the loan asset in USDT equivalent, at which the loan liquidation is expected. If the Liquidation value cannot be calculated for USDT, the liquidation occurs regarding the pledge’s market price, not the price of the loan asset.

The negative balance is displayed for convenience to indicate an open loan. A negative balance does not limit the possibility of opening margin and futures positions for the loan asset if unused funds are on the Collateral Balance (positive value of the free margin). If an asset for which the loan is opened is transferred to the Collateral Balance, the loan will be partially or fully repaid, depending on the transfer amount.

Margin and futures positions can be opened for any asset if unallocated funds are available on the Collateral Balance in any currencies.

Liquidation of the loan is part of the general process of liquidating the account in the risk management system. The system automatically determines the margin positions and loans to be liquidated. After that, they are liquidated one by one at the time of normalization of the Collateral balance and the fulfillment of the necessary conditions for removing the account from the state of liquidation. It means 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 indicator of free pledge exceeds zero when there are unallocated funds on the balance that are not used to support positions and loans. In a situation where pledged assets become insufficient, a Margin Call occurs.

The same operations are available for loan assets as for assets on the Total Balance, i.e., trading, transfers, withdrawals, and opening Crypto Lending plans.

To repay the loan, you need to replenish the Collateral balance by the amount of the debt in the same loan currency using the repayment function (“Repay” button). In addition, you can immediately close the loan using the loan pledge-closing function (“Close” button). A loan in USDT or BTC will be closed automatically if positions with a positive PnL in the same currency are closed.

It is possible to increase the value of leverage if, when it is changed, the free pledge will be higher than zero. Otherwise, you will see a message about the lack of funds on the Collateral Balance.