1. Crypto loan is to use one crypto as collateral to borrow another.
2. Formula for calculating interest:
Interest = Loan Amount x Hourly Interest Rate x Number of Hours
Interest is calculated on the hour after you successfully borrow funds. If you have no outstanding loan on the hour, there will be no interest. For example, you borrowed 100USDT at 8:10, and repaid them all at 8:50. In this case, your outstanding loan at 9:00, the interest calculation timing, is 0. Then you don't have pay any interest. However, if you have outstanding loans on the hour, loan period less than 1 hour will be counted as 1 hour.
3. Users can receive borrowed funds in real time and there’s no fixed loan term. As the continuous interest calculation during the loan period can lead to a rise of LTV and an LTV of 90% will trigger liquidation, it is advisable that users making long-term investments check the LTV status regularly to avoid liquidation risks due to the rise of LTV.**
4. Users can repay their loans any time and partial repayment is also supported. It is worth noting that interest is repaid first. The actual loan period will be used for calculating the interest. (Note: minimum loan period is 1 hour. Loan period less than 1 hour will be counted as 1 hour.)
5. 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 LTV reaches 80%, Gate 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 LTV reaches 90%, Gate will liquidate the positions and convert the collateral to the borrowed coin to repay the loan. After selling assets, 2% of your repayment will go to insurance fund to cover losses.
6. 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%).
7. Gate has the right to liquidate high-risk positions.
8. 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.
9. When using Crypto Loan, users should be fully aware of the risks of price fluctuations of digital assets. Please exercise caution and manage risks.
10. 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.
11. Gate does not take responsibility for the potential delays of emails on any third-party software. Please check your account frequently.
*The right of final interpretation of this document is reserved by Gate.
