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Cross Collateral
Repay with Collateral
Binance
2020-09-10 09:06
Note: Mobile App users please download version: Android:1.30.0 & iOS:2.19.0
In addition to the regular repayment method (USDT repayment), you can also choose to use the Collateral Repayment function to do one-click trading in your Futures wallet, sell the collateral to get USDT for repayment.
For example, when all the assets in your account are used as collateral and your wallet does not have enough USDT to repay the mortgage, you can choose to release the frozen assets (BTC, BUSD) and directly exchange it into USDT to repay the borrowed USDT amount, the remaining assets after repayment will be returned as its original type to your spot wallet.
1. Click ‘Repay’.
2. Set the repayment amount in the Repay window and tick ‘Repay with collateral’’.
According to the types of collateral coin, obtain the quotation of the collateral coin/USDT, and confirm the repayment within 25 seconds. After the time has expired, the latest exchange rate needs to be refreshed before it can be repaid. After confirming the repayment, the system transfers the USDT obtained from the transaction to the Futures wallet as the repayment.
The amount of collateral required for repayment = Repayment amount/Quoted rate
Maximum and minimum collateral repayment:
3. How to calculate the amount of collateral that can be returned
Assuming that the index price of the Collateral coin/USDT is P:
  • If LTV <= initial LTV, return amount = (USDT repayment amount / initial LTV) / P- collateral repayment amount;
  • If LTV > initial LTV, return amount = max{0, collateral paid-(borrowed amount-current repayment amount) / initial LTV / P-collateral repayment amount};
  • When you choose to repay with collateral and repay in full, return the remaining collateral
4. After completion, you can view the record in the "Repayment History" interface, this repayment type will be recorded as ‘Collateral’.

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