- Crypto Loan is to use one crypto as collateral to borrow another.
- Formula for calculating interest: Interest = Loan Amount x Daily Interest Rate / 24 x Number of Hours Interest starts to accrue once the loan has been borrowed. The minimum loan period for interest calculation is 4 hours. Loan periods less than 4 hour will be counted as 4 hours. For those with loan periods longer than 4 hours, interest is calculated on an hourly basis. Loan periods less than 1 hour will be counted as 1 hour. For example, for a loan with 4.5 hours, the loan period is 5 hours.
- If Auto Renew is not enabled, you need to repay the loan 10 days before the maturity date. If the loan is overdue, the system will take over and liquidate the position to repay the loan if necessary. It is advisable that users making long-term investments enable Auto Renew. The system will auto-borrow for these users when their order reaches maturity on a "quantity-first, interest rate first" basis.
- Users can repay their loans in advance. Both partial and full repayments are supported. The interest will be calculated based on the actual loan period (the minimum calculating period is 4 hours, and for periods less than 4 hours will be counted as 4 hours). No penalty is required.
- Gate provides risk management services based on the LTV status. (1) LTV (Loan-to-Value ratio) = Loan Value (including interest) / Collateral Value; (2) The lower the LTV, the safer the collateralized funds, and the lower the liquidation risks; (3) The initial LTV is 70%; (4) When the LTV reaches 80%, the system will send emails, direct messages, or App push notifications to remind the borrower to add more collateral to lower the LTV, thereby lowering the liquidation risk. (5) When the LTV hits 90%, the system will liquidate the positions and convert the collateral to the borrowed coin to repay the loan. And 2% of your repayment will go to the insurance fund to make up for the platform's losses caused by bankrupt isolated margin traders.
- Partial withdrawal of collateral before repayment is supported now as long as the LTV after withdrawal is below 70% (if your collateralized coin is GT, the LTV after withdrawal should be below 50%).
- The system will close 48H overdue positions or those with high risks and convert the collateral to the borrowed coin to repay the loan. And 2% of your repayment will go to the insurance fund to make up for the platform's losses caused by bankrupt isolated margin traders.
- Users must agree that interest and trading fees, etc. may be incurred when using Crypto Loan, and agree to pay as required in Gate announcements.
- When using Crypto Loan, users should be fully aware of the risks of price fluctuations of digital assets. Please exercise caution and manage risks.
- Users must agree that all investments made by Gate represent their true intentions, and unconditionally accept the potential risks and gains brought by their own investment decisions.
- Gate does not take responsibility for the potential delays of emails on any third-party software. Please check your account frequently.
Gate reserves the final right to interpret the product.
