Introduction to Collateral-Pledged Loans

What is Collateral-Pledged Loans?

"Collateral-Pledged Loans" is a financial service designed for miners, offering flexible liquidity solutions. It’s ideal for those who hold cryptocurrencies for long-term value but still need funds to cover operating expenses like electricity and miner maintenance. Miners can pledge their crypto assets to borrow from ViaBTC. Once the loan is fully repaid, the collateral will be returned to them.

Advantages of ViaBTC  Collateral-Pledged Loans

1. Tiered management of Current LTV

ViaBTC uses the “Current LTV” to measure a user’s position safety in real time, categorizing it into “Safe, Moderate, and Risky” levels. This mechanism helps monitor and alert risks promptly, preventing excessive losses caused by market volatility and providing additional security for assets.

2. Fast loan disbursement with Auto Pledge support

Loan applications are reviewed instantly and funds are credited within seconds. Users may enable Auto Pledge: once the Current LTV ≥ the Margin Call LTV, the system will automatically transfer assets from your mining account balance into the collateral to restore the ratio back to the Initial LTV, ensuring both safety and flexibility.

3. Flexible repayment, no maturity period

There is no fixed due date. As long as forced liquidation is not triggered, you may arrange repayment amount and timing according to your funding needs, maintaining full control over capital usage.

4. Multi-asset collateral for flexible management

ViaBTC Lending supports multiple mainstream cryptocurrencies as collateral, including BTC, BCH, LTC, and DOGE. Users may pledge multiple assets at once. The platform converts all collateral into its USDT value to calculate the collateral ratio, making it easier to manage positions and optimize capital efficiency.

5. Security and stability

Backed by the ViaBTC mining pool ecosystem and risk-control mechanisms, the lending process is stable and reliable, ensuring the security of user funds.

Key Concepts in Collateral-Pledged Loans

1. Mining account: Used for receiving loan funds, repaying in USDT, and serving as the source of collateral assets.

2. Lending account: Used for storing (freezing) the pledged assets.

3. Loan currency: Currently, only USDT is supported for loan.

4. Loan amount: The minimum loan per transaction is 50 USDT. There is no fixed maximum; it depends on the value of your pledged assets.

5. Loan term and interest

You can borrow and repay at anytime. Without forced liquidation, you can arrange your repayment time and amount based on your funds.

Interest is calculated daily using simple interest, with partial days counted as a full day. One day of interest accrues immediately upon loan, and thereafter interest accrues daily at 00:00 (UTC) on the outstanding principal. Daily Interest = Outstanding Principal × APR / 365.

6. Collateral coins: Currently supported collateral coins include BTC,BCH,LTC,DOGE. You can pledge multiple coins at the same time when borrowing. All pledged assets are converted into USDT value for calculating the LTV.

7. Discount rate: When calculating a position’s LTV, the collateral value is calculated using the discount rate. Collateral Value = Collateral Amount * Coin Price * Discount Rate. During collateral repayment or forced liquidation, the discount rate is not applied. Settlement is based on the actual proceeds from selling the collateral assets.

8. Withdrawable collateral amount:

When the position’s LTV< Initial LTV, users may withdraw part of their collateral assets.

(1) After withdrawal, the position’s LTV must not exceed the Initial LTV.

(2) If withdrawal causes the collateral ratio to rise above the Initial LTV, withdrawal is not allowed.

The exact withdrawable amount will be displayed on the page.

9. Collateral ratio definitions:

(1) Current LTV: Total Debt / Collateral Value * 100%

(2) Margin Call LTV: When current LTV ≥ margin call LTV, you'll be notified to add collateral to avoid asset losses from forced liquidation.

(3) Initial LTV: Calculate the loanable amount based on the initial LTV. Initial LTV = Maximum Loanable Value / Current Collateral Value

(4) Liquidation LTV: When current LTV ≥ liquidation LTV, collateral will be automatically sold to repay the loan. Please add collateral promptly to avoid forced liquidation. The Liquidation LTV varies with total debt：

Total debt ≤ 10,000 USDT ：96%

10000 USDT＜ Total Debt ≤ 50000 USDT：95%

Total debt > 50,000 USDT：94%