FAQ of Collateral-Pledged Loans

Are there any borrowing limits?

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

How is the interest calculated?

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

How long is the loan term? Can I repay in advance?

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

Which coins can I pledge, and are there any limits?

(1) 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.

(2) Collateral amount is unlimited. But each coin has a maximum collateral value when borrowing. If collateral value exceeds this limit, your borrowing capacity will be calculated based on the "maximum collateral value limit". This limit does not apply when calculating position LTV; instead, the collateral value is based on the actual collateral amount. The maximum collateral value for each coin is as follows：
{"BTC":"50000000","BCH":"200000","LTC":"200000","DOGE":"200000"}

What is the discount rate, and how does it relate to the collateral value?

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.

Can I repay with collateral assets?

When repaying, you can authorize ViaBTC to sell your collateral for automatic repayment. Once the debt is fully settled, any remaining assets will be credited to your main account balance.

How to prevent risks caused by market fluctuations?

You can manage risk by current LTV—the lower, the safer. When borrowing, we recommend pledging more collateral to keep your LTV within a safe range. Also, closely monitor changes in LTV caused by market fluctuations and promptly add collateral or make partial repayments to reduce LTV.

What happens if the current LTV is too high?

When current LTV ≥ margin call LTV, you'll be notified to add collateral. When current LTV ≥ liquidation LTV, your position will be liquidated. Please add collateral promptly to avoid liquidation.

What happens to the collateral after forced liquidation?

When current LTV ≥ liquidation LTV, collateral will be automatically sold to repay the loan, and 2% liquidatoin fee will be charged. Any remaining assets after repayment will be credited to your main account balance.

Will I be notified when my position becomes risky?

When current LTV reaches margin call LTV or liquidation LTV, you will be notified via email, in-app message, and app push. Please check your notifications!