What Is Binance Crypto Loans
Frequently Asked Questions
What Is Binance Crypto Loans
Binance Crypto Loans offers a wide range of loanable and collateral crypto assets with competitive interest rates. You can subscribe to fixed-term loans with fixed interest rates throughout the loan terms. Please read carefully and agree to the Binance Crypto Loans Terms & Conditions before using Binance Crypto Loans.
How to borrow a loan?
1. Log in to your Binance account and go to [Finance] - [Crypto Loans].
2. Search for a coin from the filter, then click [Borrow] next to it.
3. Choose a loan type and enter the amount you wish to borrow. Then, choose a collateral. The system will automatically calculate the collateral amount based on the initial LTV. You will also see the estimated hourly interest and liquidation price.
Read and agree to the Terms and Conditions and check the box next to it. Then, click [Start Borrowing].
4. You will see a pop-up confirming the loan.
How to adjust the Loan-To-Value (LTV) ratio?
1. Click [Active Loan].
2. Go to [Ongoing Orders] - [Stable Rate]. Click [Adjust LTV] next to the order you wish to adjust the LTV ratio.
3. Slide the LTV bar to adjust the LTV ratio or manually add/remove the collateral amount. Click [Add collateral] or [Remove collateral] to confirm the LTV adjustment.
How to repay a loan with the borrowed coin?
1. Click [Active Loan].
2. Go to [Ongoing Orders] - [Stable Rate]. Click [Repay] next to the order you wish to repay.
3. Select [Borrowed Coin]. Enter the repayment amount or select a repayment ratio. Check the box if you wish to keep the collateral in the order.
Review the details and click [Confirm repayment].
4. You will see a confirmation message after the repayment has been successfully processed.
How to repay a loan with the collateral?
1. Click [Active Loan].
2. Go to [Ongoing Orders] - [Stable Rate]. Click [Repay] next to the order you wish to repay.
3. Select [Collateral]. Enter the repayment amount or select a repayment ratio. Check the box if you wish to keep the collateral in the order.
Review the details and click [Confirm repayment].
How to renew a loan order?
You can renew a loan order within 24 hours before it expires. Before renewing a loan order, you must pay the interest on the original order first.
1. Click [Active Loan].
2. Go to [Ongoing Orders] - [Stable Rate]. Click [Renew] next to the order you wish to renew.
3. Confirm the loan details and click [Pay & Renew].
How to check my loan history?
Click [Loan History].
Here you can check your:
- ongoing orders;
- repayment history;
- LTV adjustment history;
- liquidation history; and
- loan history.
How to use the Auto Top-up function?
The Auto Top-up function helps you better manage your loan positions. During a margin call, the system will automatically transfer the equivalent collateral assets from your Spot Wallet to your loan orders, until your LTV reaches the initial LTV or when no more assets are available in your Spot Wallet.
Please note that if the available assets in your Spot Wallet are insufficient, you can still be liquidated even after Auto Top-up. All of your collateral and available spot assets may be liquidated in the event of extreme price movements. You should always be aware of loan risk and adjust your positions accordingly.
To enable Auto Top-up, go to [Active Loan] - [Asset Overview] and toggle on the [Auto Top-up] button.
Liquidation fee and price
If liquidation happens, you will be charged a 2% liquidation fee based on your borrowed amount. It will be deducted directly from your collateral in accordance with the market price.
You may refer to the Loan Data page for the latest liquidation LTV levels. Please note that the liquidation price displayed on the order page is for reference only. The actual liquidation price will be affected by market fluctuations and other factors. The final liquidation price is subject to the actual price the platform charges. Please note that price differences may lead to asset losses when liquidation happens. Therefore, please keep track of the LTV ratio to avoid being liquidated.
Disclaimer:
This document may have been translated and published in different languages. In the event of any inconsistency, misstatements, omissions, or errors appearing in any translated version, the English version shall prevail.
1. What crypto can I borrow on Binance Crypto Loans?
Binance Crypto Loans offers a wide range of crypto as loanable assets and collateral, including USDT, BTC, and ETH. Check out the Loan Data page for more information.
2. What are the Loan Terms?
Please refer to the Loan Data page for the available loan terms. You can always repay in advance and the interest is calculated based on the hours borrowed. There is no penalty for early repayment.
3. How is the interest calculated?
Interest is calculated hourly, in which less than one hour is calculated as one hour. The interest rate starts to accrue at the time of borrowing.
4. What is LTV?
LTV stands for Loan-to-Value. It’s the total value of your loan plus interest, if any, to the value of your collateral. The value is determined by the index price.
LTV = Loan Value / Collateral Value
5. What happens if my loan repayment is overdue？
We give an overdue duration of 72 hours (for loan terms of less than 30 days) or 168 hours (for loan terms of 30 days and above), during which you will be charged 3 times the hourly interest. If you do not repay after the overdue duration, we will liquidate your collateral to repay your loan.
6. What is loan liquidation, and what is the liquidation LTV?
In a secured loan, the lender has the right to obtain ownership of the collateral if the borrower defaults in their obligation. This can happen if the current Loan-to-Value (LTV) ratio exceeds the liquidation LTV. A drop in the value of the collateral or an increase in the value of the borrowed assets due to accrued interest over time can cause this. The liquidation LTV is the ratio at which the lender can initiate a liquidation process.
7. What happens when a loan is liquidated?
When the current LTV ratio for a loan position reaches or exceeds the liquidation LTV, a partial liquidation occurs. In this case, roughly 50% of the outstanding loan amount is repaid using equivalent value of collateral pledged for the position.
If the LTV remains at or above the liquidation LTV after the initial liquidation, or if the remaining loan has a value of less than 200 USD, the entire outstanding loan amount will be repaid using the equivalent collateral value.
A full liquidation occurs once a hard-cap liquidation LTV of 90% is reached for any cryptocurrency or whenever an outstanding loan has a value of less than 200 USD. The entire loan will be repaid using the equivalent value of collateral for that loan position.
If liquidation happens, you will be charged a 2% liquidation fee based on your borrowed amount. It will be deducted directly from your collateral in accordance with the asset’s market price.
8. What is a margin call?
A margin call is issued when a specific collateral-loan pair position reaches its margin call LTV. This margin call LTV serves as a warning that the loan position is nearing the Liquidation LTV. To avoid liquidation, you can pledge additional assets to increase the collateral value or to partially reduce the outstanding loan, thereby reducing the LTV.
9. Will I be notified in the event of margin calls or liquidations?
You’ll be notified via in-mail, email, and SMS in the event of a margin call or liquidation. The notifications serve as a risk warning and cannot guarantee timely delivery.
By using the service, you agree that under certain circumstances, you may be unable to receive or get delayed SMS or email reminders. The circumstances include but are not limited to personal network congestion, poor network environment, local restrictions, service provider's policies, and device malfunctions.
If the margin call time and liquidation call time are too close, the margin call notification is automatically canceled by the system, and you’ll only receive the liquidation call notification. Binance reserves the right with no obligation to deliver notifications.
10. What can I do with the loaned assets?
You can use the loan for any purpose, including trading on the Spot/Margin/Futures markets, staking, or even withdrawing the funds.
11. Can I renew my loan order?
Yes, no matter which token you borrowed (e.g., Bitcoin, Ethereum), you can renew a loan order within 24 hours before it expires. Please note that you must pay the interest on the original order first, and each order can only be renewed once.
12. What is “Auto Top-up”?
Auto top-up allows you to better manage your loan positions. After enabling auto top-up, the system will automatically use the same asset in your Spot Wallet to top up the collateral of your loan order back to the initial LTV during a margin call. However, please note that you could still get liquidated during extreme market movements even if you’ve enabled auto top-up.