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Interest Charge and Interest-Free Period

2020-09-16 03:45
Notes:
This interest charge is only subject to those who borrowed funds after 00:00:00 AM UTC on September 21, 2020. No interest will be charged on existing borrowings before the date.
Users will enjoy different borrowing limits and daily interest rates at different VIP levels. Binance can adjust the Interest Rate, Grace Period, Borrow Limit, LTV ratio (Initial LTV, Margin LTV, Liquidation call) from time to time without prior announcement. Users should check the interest rate proactively on the Fee Schedule page.

Interest-free period

Each order of cross collateral loan will enjoy a 3-day interest-free period, starting from the day of borrowing, i.e. the first 3 UTC+0 natural days of the borrowing are interest-free (including the day of borrowing).

Interest Charge

After the interest-free period, daily interest will be calculated. For example, the daily interest rate for regular users will be 0.24%, and the interest is calculated once a day at 00:00 UTC+0.
The system will update the accumulated interest of each order according to the formula (remaining loan amount * the latest interest rate), and refresh the LTV at the same time.
The calculation method is: Borrowing time dd+N 00:00 UTC+0.
Example 1: A user borrowed at 2020-07-01 00:00:00 UTC. The interest-free period is 3 days and interest will start to incur at 2020-07-04 00:00:00 UTC.
Example 2: A user borrowed at 2020-07-01 07:02:55 UTC, the interest-free period is 3 days, interest will start to incur at 2020-07-04 00:00:00 UTC.
Example 3: A user borrowed at 2020-07-01 07:02:55 UTC. The principal is 500 USDT and the interest-free period is 3 days. The user repays 200 USDT at 2020-07-03 23:00:00 UTC, and interest will be calculated based on the remaining 300 USDT and start to incur at 2020-07-04 00:00:00 UTC.

Interest history

Go to [Orders] - [Futures Order] - [Interest History]. This page updates at 00:00 UTC+0 daily based on your loan amount.

How to repay interests

When you make a repayment, interest will always be repaid before any principal and according to the order generation time, i.e. the first order is paid first; once all interests have been repaid in full, you will then start repaying principal and the LTV will be refreshed thereafter.
For details on loan repayment, please refer to How to Repay a Loan and How to Repay a Loan with Collateral.