What is ViaBTC Crypto Loans?
"ViaBTC Crypto Loans" is a financial tool tailored for pool users, making asset flow flexible. Users who are optimistic about long-term value of held cryptocurrencies and need funds to pay daily expenses such as electricity bills and miner maintenance can pledge their crypto assets for ViaBTC loans. Once fully repaid their loans, they can get collateral assets back.
For example: Assuming the current price of BTC is 10,000 USDT, you're a holder of 1 BTC and optimistic about its long-term value. However, you have insufficient funds at hand. You can pledge 1 BTC to borrow 6,000 USDT from ViaBTC for daily turnover. After 30 days, when the price of BTC rises to 12,000 USDT and you repay to get your 1 BTC back, then you earn 2,000 USDT (regardless of other costs).
Why ViaBTC Crypto Loans?
1. Flexible asset flow: Get circulating capital without selling coins;
2. Instant lending: Fast loan arrival after rapid assessment;
3. Borrow and repay at anytime: Open-ended, no service fee charged.
Terms of Crypto Loans
1. Mining Account: As the source of collateral assets in the loan account.
2. Loan Account: To receive loan assets and collateral (frozen) assets.
3. Loan Coin: USDT
4. Loan Limit: 100 USDT≤ Single borrowing ≤200,000 USDT, and the total borrowings per user cannot exceed 500,000 USDT.
5. Loan Interest: The daily interest rate ranging from 0.05% to 0.065% is calculated according to the actual borrowing time, and less than one day will be deemed as one day.
6. Collateral Coins: BTC、BCH、BSV、ETH、LTC. Only one collateral coin can be chosen for single borrowing.
7. Index Price: Based on CoinEx USDT index price, and calculated every 5 seconds.
When current LTV ≥ Margin Call LTV, balance from all of your mining accounts will be transferred into your collateral asset to lower the current LTV to the initial one. The function of auto pledge will be turned on by default and you can turn it off manually.
1. Calculation: Auto pledge amount= Minimum collateral amount - Balance in the loan account =(Total borrowing amount of current collateral coin + Total to-be-repaid interest) / (Index price * Initial LTV) - Balance in the loan account
2. Rules: Assets from mining account will be transferred automatically to the loan account. When it meets the auto-pledge amount, assets will end to transfer. If assets from all of your mining accounts are less than auto-pledge amount, all will be transferred.
Both of partial repayment and full repayment are supported. Users can choose the loan currency (USDT) to repay, or delegate ViaBTC to sell your collateral assets for repayment. When repaying, the interest will be paid first and then the principal.
1. Repay in USDT
Before repayment, the user needs to transfer a sufficient amount of USDT to the loan account. When repaying, the system deducts the corresponding amount from the loan account, and unfreezes the corresponding collateral amount.
2. Repay in collateral assets
The user can choose the collateral assets for repayment, set the selling amount and price, and delegate ViaBTC to sell them.
1) The progress of the delegated orders can be checked on the page of [Loan]-[My Delegation] ;
2) The system will cancel the unexecuted order if it is not executed completely within 24h or liquidation is triggered during the delegated period. The executed part will not be affected.
3) Unexecuted orders can be cancelled manually.
Transferable collateral amount = Balance in the loan account - Minimum collateral amount = (Total borrowing amount of current collateral coin + Total to-be-repaid interest) / (Index price * Initial LTV). When the balance in the loan account is less than the minimum collateral amount, zero collateral asset can be transferred.
When the LTV of a certain coin ≥ the liquidation LTV, the system executes a forced liquidation for all orders of this coin. The system will sell the collateral assets at a fast executed price to repay the user's loan. If there are remaining assets after the repayment of the principal and interest, it will be transferred into the ViaBTC insurance fund, and the fund will make up for the loss if there are bankrupt positions (the assets from selling coins are not enough to repay the user's debt). In other words, users are free from responsibility.
Estimated liquidation price = (Total to-be-repaid amount of current collateral coin + Total to-be-repaid interest) / (Balance in the loan account * Liquidation LTV)
Methods of decreasing forced liquidation risk
1. Turn on the auto pledge
2. Increase Collateral Assets manually
3. Apply reasonable borrowing amount