1. What crypto can I borrow on Binance Crypto Loans?
Binance Crypto Loans offers a wide range of crypto as loanable assets and collateral, including USDT, BTC, and ETH. Check out the
Loan Data page for more information.
2. What are the Loan Terms?
Please refer to the
Loan Data page for the available loan terms. You can always repay in advance and the interest is calculated based on the hours borrowed. There is no penalty for early repayment.
3. How is the interest calculated?
Interest is calculated hourly, in which less than one hour is calculated as one hour. The interest rate starts to accrue at the time of borrowing.
4. What is LTV?
LTV stands for Loan-to-Value. It’s the total value of your loan plus interest, if any, to the value of your collateral. The value is determined by the
index price.
LTV = Loan Value / Collateral Value
5. What happens if my loan repayment is overdue?
We give an overdue duration of 72 hours (for loan terms of less than 30 days) or 168 hours (for loan terms of 30 days and above), during which you will be charged 3 times the hourly interest. If you do not repay after the overdue duration, we will liquidate your collateral to repay your loan.
6. What is loan liquidation, and what is the liquidation LTV?
In a secured loan, the lender has the right to obtain ownership of the collateral if the borrower defaults in their obligation. This can happen if the current Loan-to-Value (LTV) ratio exceeds the liquidation LTV. A drop in the value of the collateral or an increase in the value of the borrowed assets due to accrued interest over time can cause this. The liquidation LTV is the ratio at which the lender can initiate a liquidation process.
7. What happens when a loan is liquidated?
When the current LTV ratio for a loan position reaches or exceeds the liquidation LTV, a partial liquidation occurs. In this case, roughly 50% of the outstanding loan amount is repaid using equivalent value of collateral pledged for the position.
If the LTV remains at or above the liquidation LTV after the initial liquidation, or if the remaining loan has a value of less than 200 USD, the entire outstanding loan amount will be repaid using the equivalent collateral value.
A full liquidation occurs once a hard-cap liquidation LTV of 90% is reached for any cryptocurrency or whenever an outstanding loan has a value of less than 200 USD. The entire loan will be repaid using the equivalent value of collateral for that loan position.
If liquidation happens, you will be charged a 2% liquidation fee based on your borrowed amount. It will be deducted directly from your collateral in accordance with the asset’s market price.
8. What is a margin call?
A margin call is issued when a specific collateral-loan pair position reaches its margin call LTV. This margin call LTV serves as a warning that the loan position is nearing the Liquidation LTV. To avoid liquidation, you can pledge additional assets to increase the collateral value or to partially reduce the outstanding loan, thereby reducing the LTV.
9. Will I be notified in the event of margin calls or liquidations?
You’ll be notified via in-mail, email, and SMS in the event of a margin call or liquidation. The notifications serve as a risk warning and cannot guarantee timely delivery.
By using the service, you agree that under certain circumstances, you may be unable to receive or get delayed SMS or email reminders. The circumstances include but are not limited to personal network congestion, poor network environment, local restrictions, service provider's policies, and device malfunctions.
If the margin call time and liquidation call time are too close, the margin call notification is automatically canceled by the system, and you’ll only receive the liquidation call notification. Binance reserves the right with no obligation to deliver notifications.
10. What can I do with the loaned assets?
You can use the loan for any purpose, including trading on the Spot/Margin/Futures markets, staking, or even withdrawing the funds.
11. Can I renew my loan order?
Yes, no matter which token you borrowed (e.g.,
Bitcoin,
Ethereum), you can renew a loan order within 24 hours before it expires.
Please note that you must pay the interest on the original order first, and each order can only be renewed once. 12. What is “Auto Top-up”?
Auto top-up allows you to manage your loan positions. After enabling auto top-up, the system will automatically use the same asset in your Spot Wallet to top up the collateral of your loan order back to the initial LTV during a margin call. However, please note that you could still get liquidated during extreme market movements even if you’ve enabled auto top-up.