Interest Charge and Interest-Free Period
This interest charge is only subject to those who borrowed 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 from the Fee Schedule page.
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).
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, 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, interest will be calculated based on 300 USDT and start to incur at 2020-07-04 00:00:00 UTC.
You can go to [Orders] - [Futures Order] - [Interest History] to view. This page updates at 00:00 UTC+0 every day according to your loan amount.
How to repay interests
When you make a repayment, interest will always be repaid before any principal, according to the order time it is generated, i.e. the first order is paid first; once all interests have been repaid in full, you will then start repaying principal, the LTV will be refreshed at completion.