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Introduction to Binance Loans
2020-06-11 08:11
What is Binance Loans?
Frequently Asked Questions
Last updated: 3 Sep 2024
Disclaimer: In compliance with MiCA requirements, unauthorized stablecoins are subject to certain restrictions for EEA users. For more information, please click here.
Binance Loans offers a range of loanable and collateral crypto assets with competitive interest rates, including: Flexible Loans, VIP Loans and Fixed Rate Loans.
Each loan may adhere to its own terms and conditions. Please read carefully and agree to the Binance Loans Terms & Conditions before using Binance Crypto Loans.
For Frequently Asked Questions, click to view the "Frequently Asked Questions" tab on this page.
Video tutorial
How to borrow a loan?
1. Log in to your Binance account and go to [More] -[Loans].
2. Search for a coin from the filter, then click [Borrow] next to it.
3. Choose a loan type and enter the amount you wish to borrow. Then, choose a collateral. The system will automatically calculate the collateral amount based on the initial LTV. You will also see the estimated hourly interest and liquidation price.
Read and agree to the Terms and Conditions and check the box next to it. Then, click [Start Borrowing].
4. You will see a pop-up confirming the loan.
How to adjust the Loan-To-Value (LTV) ratio?
1. Click [Active Loan].
2. Go to [Ongoing Orders] - [Flexible Rate]. Click [Adjust LTV] next to the order you wish to adjust the LTV ratio.
3. Slide the LTV bar to adjust the LTV ratio or manually add/remove the collateral amount. Click [Add collateral] or [Remove collateral] to confirm the LTV adjustment.
How to repay a loan?
1. Click [Active Loan].
2. Go to [Ongoing Orders] - [Flexible Rate]. Click [Repay] next to the order you wish to repay.
3. Enter the repayment amount or select a repayment ratio. Check the box if you wish to keep the collateral in the order.
Review the details and click [Confirm repayment].
4. You will see a confirmation message after the repayment has been successfully processed.
How to check my loan history?
Click [Loan History].
Here you can check your:
Ongoing Orders;
Repayment History;
LTV Adjustment History;
Liquidation History
Loan History; and
Subscribe History.
Liquidation fee and price
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 market price.
You may refer to the Loan Data page for the latest liquidation LTV levels. Please note that the liquidation price displayed on the order page is for reference only. The actual liquidation price will be affected by market fluctuations and other factors. The final liquidation price is subject to the actual price the platform charges. Please note that price differences may lead to asset losses when liquidation happens. Therefore, please keep track of the LTV ratio to avoid being liquidated.
Disclaimer: This document may have been translated and published in different languages. In the event of any inconsistency, misstatements, omissions, or errors appearing in any translated version, the English version shall prevail.
Disclaimer: Digital asset prices are subject to high market risk and price volatility. The value of your investment may go down or up, and you may not get back the amount invested. You are solely responsible for your investment decisions and Binance is not liable for any losses you may incur. Past performance is not a reliable predictor of future performance. You should only invest in products you are familiar with and where you understand the risks. You should carefully consider your investment experience, financial situation, investment objectives and risk tolerance and consult an independent financial adviser prior to making any investment. This material should not be construed as financial advice. For more information, see our Terms of Use and Risk Warning.
1. What crypto can I borrow on Binance Loans?
Binance Loans offers a wide range of crypto as loanable assets and collateral, including, BTC, ETH and stablecoins. 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?
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 to deliver such notifications, but is under no obligation to do so and has no liability to users where such notifications are not received
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.
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