๐ฐCRYPTO LOANS
Last updated
Last updated
Have you ever been in a situation where you wanted to use one currency instead of another without trading your assets? We have a solution! BetFury is launching a new feature: Crypto Loans. Borrow assets with confidence that you will not go into the red because we have taken care of a user-friendly approach with favorable conditions. Let's discover how to use Crypto Loans.
Crypto Loans is a financial service that gives you access to liquidity in exchange for collateral. Our system differs from other exchanges in its ability to secure borrowing. Therefore, you can easily control the collateral amount and not overpay.
Loan-to-value (LTV) is the ratio (%) of the loan to the collateral amount. Our Crypto Loans are centered around core metrics: Initial LTV, Margin Call LTV, and Liquidation LTV. Initial LTV determines the starting amount for the loan. Margin Call shows when your LTV level is close to Liquidation. Liquidation is the process by which the platform liquidates your collateral assets to repay the loan.
The Lowest Interest Rate Our Interest Rate is the lowest among all CEXs. For example, it equals 6.6% for USDT (30-day period). This value is 5-6 times less than on some top platforms.
Creating Positions With LTV < Initial LTV You can choose the amount of collateral assets so that the LTV decreases to 50%. It will allow you to be much further away from Liquidation.
The Gap Between Margin Call LTV & Liquidation LTV Weโve increased the gap between Margin Call LTV and Liquidation LTV, so you have time to react.
There are five Loanable Currencies: BTC, USDT, ETH, BNB, and TRX. You can borrow up to $200 000 in one of these assets. Thus, your loan can reach $1 000 000 if you choose all these currencies. The number of Collateral Assets exceeds 15 currencies. Each of the Collateral Assets has different LTV levels for the above metrics:
Tier 1: USDT, BTC & ETH Initial LTV = 80%, Margin Call LTV = 90%, Liquidation LTV = 95%.
Tier 2: BNB & TRX Initial LTV = 80%, Margin Call LTV = 85%, Liquidation LTV = 90%.
Tier 3: All Other Tokens: Initial LTV = 75%, Margin Call LTV = 80%, Liquidation LTV = 85%.
You may have noticed that the difference between Initial and Liquidation LTV is 10-15%. It considers volatility and any crypto price movement. Check out an example that displays LTV changes and reasons for Liquidation.
Suppose you want to borrow 10 000 USDT and choose BTC as collateral. The minimum collateral amount will be 10 000 / 80% = 12 500 USDT (0.2083 BTC if 1 Bitcoin = $60 000). If the BTC price drops to $53 342, your current LTV will exceed 90%, and you will receive the Margin Call. If you do not add funds to the collateral amount and the BTC price drops to $50 534, the LTV will exceed 95%, and the position will be liquidated.
You can create positions with LTV from 50% to 75-80% (depending on a currency tier). It allows you to choose a collateral amount that makes your position safer. Using the example above, you can place from 0.2083 BTC to 0.3333 BTC as collateral.
You always have the opportunity to add additional funds between the Margin Call LTV and Liquidation LTV to reduce the risk level.
You will enter an overdue period if you do not close your position within the specified time. In the case of Liquidation, the platform closes your position regardless of the period. All these cases involve various types of commission.
The main fee is Outstanding Interest, which is responsible for using Crypto Loans. It depends on the Annual Interest Rate of the loan currency and the chosen term. Outstanding Interest is calculated hourly and accrued with Hourly Interest Rate (Annual Interest Rate / 365 / 24). You can find each loanable asset's Annual and Hourly Interest Rates on the Crypto Loans page.
๐ก Suppose you borrow 10 000 USDT for 30 days. Your Annual and Hourly Interest Rates will be 6.6% and 0.000753%. Then, your Outstanding Interest (for 1 hour) = 0.0753 USDT.
Now, let's take this example with a 30-day borrowing limit and check out all possible cases.
Successful Position Closing If you promptly close the position in 10 days (240 hours), the Outstanding Interest will reach 18 USDT (0.0003 BTC). This value will be added to your loan amount.
Entering the Overdue Period If you fail to return your loan amount, your position will enter the overdue period. In this case, the commission increases by 3 times. Then, the Overdue Interest will be added to the Outstanding Interest. The overdue period also has some limitations. The maximum overdue period for a 7-day position is 48 hours; for a 14-day position is 72 hours; for a 30-day position or longer โ 168 hours. After these deadlines, your position will be liquidated.
Liquidation If the BTC price falls to the Margin Call level and you don't take action, the position will be liquidated. It involves an additional 2% fee of your collateral amount. If your position is liquidated during the overdue period, the total commission will be (Outstanding Interest + Overdue Interest + 2% Liquidation Fee).
โ ๏ธ Important! The service fee is not deducted from the balance but is added to your total loan. Therefore, prolonged non-payment increases LTV and the chances of Liquidation.
Go to the Crypto Loans page.
Choose the Loanable Coin & tap Borrow.
Enter the crypto amount you want to borrow or can use as collateral.
Select the Loan Term and view the current Initial, Margin Call & Liquidation LTV.
Congratulations, you have successfully borrowed crypto.
BetFury Crypto Loans is a safe feature that allows you to borrow crypto for your needs. You can use these assets in platform games, trade them on Futures, etc. If you return crypto promptly, you will pay the minimum fee and get a profit. This feature is perfect for managing multiple assets and using market movements to make money.