Last updated: 2023-03-08
Effective from 2023-03-01 06:00(UTC+0), Binance Margin’s new dynamic interest rate system ensures interest rates always reflect current market conditions.
How will I be impacted?
Margin loan interest rates will change every hour based on current market conditions. Binance Margin users will continue to be charged simple interest for their borrowings hourly. The interest accrues at the start of every hour (e.g., 13:00, 14:00, etc.).
Where do I find the latest interest rates?
You can check the latest token borrow rates on the Binance Margin Data page and API. Moreover, you can also find the next hour's estimated interest rate via the Margin Trading webpage. Corresponding endpoints are available on API too.
What if I repay my margin loan early?
While the interest rate calculations remain the same under the new dynamic interest rate system, it’s important to understand when and how interest is calculated. You can repay your margin borrowings at any time. However, if funds are borrowed for less than an hour, you’ll still be charged for the full hour’s interest.
The calculation formula: I (interest) = P (borrowed money) * R (hourly interest) * T (in hours)
Assuming the hourly interest is 0.001%. User A borrows 1,000 USDT at 13:20 and repays at 14:15.
The interest rate calculation is calculated as 1,000 * 0.001% * 2 hours = 0.02 USDT.
User A was charged for two hours because interest is charged once for the borrowing between 13:20 to 13:59 and another from 14:00 to 14:15.
How will this impact my margin levels?
Given interest rates may fluctuate according to market conditions, we advise monitoring the applicable interest rates and margin level closely to avoid potential liquidation due to large interest rate fluctuations and/or interest accrued over time.