What is Binance Fixed Rate Loans?

Currently, Binance Fixed Rate Loans only supports stablecoins with 30-day fixed terms. Please refer to the product page for the latest information.

For detailed information, please refer to the Binance Fixed Rate Loan Service Terms..

Upon matching, the interest payable on the loan by the Borrower under the Binance Fixed Rate Loans service will include as an aggregate figure covering the cost of funding and the funding for Binance insurance funds. This amount is determined by Binance in its absolute discretion, and based on a number of factors which may include, but is not limited to, prevailing market conditions such as “Charge Fees” or “Loan Interest”.

Binance provides a variety of loan services including Fixed Rate Loans, Flexible Loans and VIP Loan to meet the demands and scenarios of different users. For details of Flexible Loans and VIP Loan, please refer to What is Binance Flexible Loan and Frequently Asked Questions and What Is Binance VIP Loan and Frequently Asked Questions.

You can set the interest rates of the Borrow and Supply order according to your needs.

Yes, currently the minimum amount per Borrow or Supply order is $50,000 equivalent of stablecoins. The maximum borrow amount per user is subject to the amount of the Borrower’s collateral value and the borrow cap of different coins in Fixed Rate Loans.

The maximum supply amount per user is subject to the Supplier’s available assets in the Spot Wallet and the supply cap of different coins in Fixed Rate Loans. Please refer to the product page for the latest information.

If your order has already been matched, it cannot be edited or canceled. However, if your order hasn't been matched, you can still edit or cancel your order from Loan - Pending Orders.

Please note: If you use the split order feature for your supply order, you cannot edit the split orders that are matched already. Unmatched parts of the order can still be edited or canceled.

There is no limitation on the purpose of the loan. You may trade on the Spot market, deposit them into Binance Earn products, or withdraw them from Binance.

The Loan Interest is calculated according to the following formula:

Loan Interest = Borrowing Amount * Matching Interest Rate (Inclusive of the Fixed Rate Loan Charge Fees)* Fixed Duration / 365

Please note: Binance Fixed Rate Loans is a fixed-term loan. Loan Interest charged in advance at the time of fund transfer. The actual amount the Borrower receives is the borrowed amount minus the precalculated Loan Interest. If the Borrower repays the loan in advance or Binance liquidates the Borrower’s collateral for repayment of an overdue loan balance or when the loan LTV reaches the Liquidation LTV before the order expires, the payable Loan Interest amount will remain unchanged and will not be refunded.

Once the order is placed, your collateral assets will be automatically frozen in your Spot Wallet. After the order is matched, your collateral assets will be automatically transferred out of your Spot Wallet and held by Binance until the loan is repaid in full.

The Borrower has to repay the loan in full before the expiry date. The Late Fee will be automatically incurred, accruing on an hourly basis for the duration of the 24 hour grace period following the expiry date, where the loan order is not repaid in full before the expiry date. Where the loan order is not repaid in full 24 hours following the expiry date, the collateral assets will be automatically liquidated to repay the loan order and the Late Fee.

Please refer to the available collateral list on the product page.

Please note: Collateral ratio applies to different collateral assets depending on the respective asset(s) market liquidity.

Collateral ratio represents the value of your collateral pledged after being calculated based on the market volatility discount rate. Please refer to the product page for the latest Collateral ratio.

Example:

The user has 2,000,000 “A” coins, with a token price of $0.6. The following is the formula for calculating effective collateral value:

Initial asset value = 2,000,000 * $0.6 = $1,200,000

Collateral value = 300,000 * 100% + (500,000 - 300,000) * 70% + (1,000,000 - 500,000) * 30% + (1,200,000 - 1,000,000) * 0% = $590,000

Please note: The collateral discount rate only affects the maximum amount you can borrow from Fixed Rate Loan. It doesn’t affect the actual value of your assets.

LTV stands for Loan-to-Value. It’s the total value of your loan to the value of your collateral (after the collateral ratio is applied). The value is determined by the index price of respective coins.

LTV = Loan Value / Collateral Value

For example, assuming an initial LTV of 70% for the ABC token: if you have pledged 1,000 ABC as collateral, you may borrow up to 700 ABC worth in crypto assets.

Initial LTV is the initial ratio between the value of the collateral you need to provide and your borrowing amount, which is used to evaluate and control the risk of the loan.

Please note: The current Initial LTV is 72%. Borrow orders are only available for matching when the LTV is lower than the initial LTV. If the LTV of a pending order remains higher than Initial LTV for 24 hours, the system will automatically cancel your order.

Margin Call LTV represents a warning that the loan position is getting closer to the liquidation LTV. When your loan position reaches its margin call LTV, which is 77% at the moment, a margin call notification will be sent out. You can take action by pledging more assets to increase the collateral value thus reducing the LTV.

For example, if the Margin Call LTV is 77%, the system will remind you to top up the Collateral Asset when the Borrowing Amount/ Collateral Amount ≥ 77%.

Loan liquidation will happen when the Borrower defaults in their obligations under the loan agreement and associated terms. In that case, Binance has the right to obtain full legal ownership of the deposited collateral.

Defaults include, but are not limited to, where the loan repayment is overdue, and the current LTV exceeds the liquidation LTV, which might happen when the collateral decreases in value.

The Liquidation LTV refers to the tipping point at which Binance will automatically liquidate the collateral assets to recover the loan and reduce the risk when the value of the collateral asset drops to a certain percentage relative to the borrowing amount.

If the order reaches the Liquidation LTV, which is 91% at the moment, the system will immediately execute the forced liquidation and use the collateral assets to repay the outstanding loan amount. In the event of a forced liquidation, a liquidation fee of 2% of the borrowed amount will be charged, which will be deducted from your collateral. If there is any remaining collateral after the forced liquidation, the system will transfer the remaining collateral back to your spot account.

For example, if the Liquidation LTV is 91%, when your loan value/collateral asset value exceeds 91%, the system will immediately execute the forced liquidation.

If the market is volatile and the value of the collateral becomes less than the total debt value, you are obliged to immediately repay the remaining arrears.

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. You are responsible for monitoring the loan orders by yourself.

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.

Please note that if the margin call time and liquidation call time are too close, the margin call notification will be 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.

Binance Fixed Rate Loans is a fixed-term loan, and Loan Interest is charged in advance at the time of disbursement. The actual amount the Borrower receives is the borrowed amount minus the precalculated Loan Interest. You have the right to repay the loan early, but in the case of early repayment or the order is liquidated before maturity, Loan Interest remains fully payable and due, and will not be refunded.

When the auto-repayment feature is enabled, Binance will automatically transfer the repayment amount for the current loan order from your Spot Wallet upon the loan’s expiration. This feature helps users avoid penalties for failing to repay the loan order on time.

Please note: If you do not have enough assets in your Spot Wallet to repay the loan in full, the auto-repayment will fail, as partial repayment is not provided. You can disable auto-repayment at any time before your order expires.

Return Interest accrues once your supply order gets matched. Return Interest is calculated according to the following formula:

Total Interest Rewards = Amount Supplied * Matching Interest Rate* Fixed Duration / 365

Please note: Return Interest will only start accruing once the order is matched and not before. Return Interest will be distributed along with the return of your loaned assets within 24 hours following the expiry date.

Binance Fixed Rate Loans is committed to protecting the safety of users’ assets. Binance adopts platform custody and overcollateralization mechanisms. Once the LTV of the borrowed funds is higher than a certain tipping point, the collateral assets deposited in Binance’s collateral management account, will be automatically liquidated to repay the loan.

Once the order gets matched, you cannot redeem the loaned assets before the expiry date or request earlier repayment. Your loaned assets along with the Return Interest will be returned to your Spot Wallet within 24 hours following the expiry date, or earlier repayment where applicable.

If the borrowed funds get repaid earlier by the Borrower or the liquidation occurs due to the high LTV, your loaned assets will be returned prior to the expiry date. The Return Interest amount remains unchanged. Return Interest and your loaned assets will be released to your Spot Wallet within 24 hours after the order ends.

After the auto-renewal function is enabled, Binance will automatically create a new supply order for you based on the interest rate and deposit amount of the current order after the current supply order expires and the loaned assets are returned to you. You can disable the auto-renewal feature at any time before your order expires.

By enabling the order splitting feature, you can split a large supply order into several sub-orders and supply separately. This will enhance the order matching rate.

Please note: Your sub-order must meet the minimum loan quantity requirement for Binance Fixed Rate Loan, i.e. each sub-order must be greater than $50,000 equivalent. After the order splitting feature is enabled, the partially matched sub-orders cannot be modified. Any unmatched sub-orders can still be modified or canceled.