Your Crypto, Your Terms: Introducing Bitget Crypto Loan for Smart Financing
Cryptocurrency has been on a rollercoaster ride of highs and lows since its birth in 2009. According to our Q1 2023 transparency report, the global crypto market cap recorded a surge of 48.9% at the end of March compared to Q4 2022, showing a return to the US$1 trillion mark. Recognizing the transformative potential of these times, Bitget, the world's leading centralized exchange, has just introduced Bitget Crypto Loan to fortify and empower your investment portfolio. This new feature perfectly fits the evolving landscape as it enables users to navigate the twists and turns of the market with greater confidence and seize the opportunities that lie ahead.
Bitget Crypto Loan: Instant Access, More Control
A crypto loan is a type of financial product that allows users to borrow fiat or other cryptocurrencies by using their crypto assets as collateral. Bitget Crypto Loan is designed to provide users with instant access to additional funds without losing control of their crypto assets. The process is simple: stake your collateral, get the loan, add to or withdraw from the collateral ( if applicable), undergo liquidation (if applicable), pay interest, repay the loan, and redeem your collateral.
Bitget's innovative approach to the Loan-to-Value (LTV) ratio, a key risk assessment indicator, ensures a safer borrowing environment. With three LTV levels set to match the risks associated with the collateralized assets, Bitget has your back:
- Initial LTV: The initial LTV ratio is used to determine the maximum loan a user can get in accordance with their collateral amount.
- Margin Call LTV: This is a predetermined LTV ratio at which the borrower receives a margin call, and the system will notify the user to supplement their collateral.
- Liquidation LTV: This is the LTV ratio at which the lender will liquidate the borrower's collateral to recover the loan amount. The system will close the loan and notify the borrower.
The first service of Bitget Crypto Loan to be rolled out is fixed-term loans. If repayment is overdue after maturity, a penalty in the form of interest is charged. But don't worry, the interest rate remains unchanged throughout the term, and early repayment is allowed. The fixed interest rate is calculated on an hourly basis. Plus, you repay the loan using the same cryptocurrency that was initially borrowed. It's a straightforward and predictable borrowing experience.
A Hands-on Guide
At Bitget, we promise to deliver the best crypto experience from A to Z. Here’s a quick guide to getting started with Bitget Crypto Loan:
Step 1: Stake your collateral
Log in to your Bitget account, or create a new account if you are not a Bitgetter yet.
On the navigation bar, click on “Earn", and then select "Crypto Loan''or click HERE to enter the Bitget Crypto Loan mainpage. Then, you'll be able to see the list of assets available for borrowing, along with their hourly fixed rate.
Crypto loan homepage
Choose a loan that meets your requirements in terms of fixed rate and collateralized assets. Once you've found a loan you're interested in, click on “Borrow” to view the details.
Select your Loan Term type, the asset you wish to borrow, and the collateral from your Spot account. Carefully review the loan details including Interest rate, Initial LTV, Margin call LTV, and Liquidation LTV. Once you are satisfied with the terms, click "Confirm" to submit your loan application. After confirmation, the collateral will be staked to the crypto loans system.
Loan order detail
Step 2: Get your loan
Bitget will evaluate your application and promptly release the borrowed funds upon approval.
Successful loan approval
Please note that as a risk control measure, a user's loan application may be rejected if the user account is suspended from trading.
Step 3: Monitor your loan
You will receive a notification confirming your loan. You can monitor your loan orders and assets at Bitget Crypto Loan mainpage.
The signed-in state of the crypto loan homepage
Click on "Ongoing loans" to view your current loans.
Ongoing loans list
You can click on "Adjust LTV" if you need to withdraw or add collaterals during the loan term.
Adjust the LTV process
Step 4: Repay your loan and redeem your collateral
To repay, click on "Repayment". You have the option to repay in parts or in full.
Successful loan repayment
Once the loan is fully repaid, you can redeem your collateralized assets.
Congratulations! You’ve successfully navigated through the process of securing a crypto loan on Bitget. Always remember to monitor and manage your loans responsibly.
Answers to Commonly Asked Questions
Still have questions? Here are some frequently asked questions to help you gain a deeper understanding of Bitget Crypto Loan:
- What cryptocurrencies can be used as collateral?
Bitget accepts a variety of cryptocurrencies as collateral, including Bitcoin (BTC), Ethereum (ETH), and several others. Check the platform for the full list.
- What is the general process for a crypto loan on Bitget?
The general process involves staking your collateral, getting the loan, adding to or withdrawing from the collateral (if applicable), undergoing liquidation (if applicable), paying interest, repaying the loan, and redeeming your collateral.
- What is the repayment process?
The repayment process involves receiving a repayment notification, choosing a repayment method, making the repayment, determining the repayment limit, making a partial repayment, repaying in advance, and handling overdue repayment.
- Am I able to repay the loan using a different cryptocurrency than the one I initially borrowed?
Unfortunately, that is not permissible. It is mandatory for borrowers to repay the loan in the exact cryptocurrency that was borrowed in the first place.
- Is there an option to make partial payments towards the loan?
Indeed, partial payments are permissible. Upon making a partial payment, the Loan-to-Value (LTV) ratio as well as the total outstanding debt will be recalculated accordingly
- What are the consequences if I fail to repay the loan on time?
In the event of a repayment being overdue, the borrower will be subjected to an interest at a rate equal to 200% of the loan's original interest rate for the duration of the late payment. This interest will accumulate in accordance with the established formula.
- How is interest calculated?
Interest is calculated on an hourly basis, and any time less than one hour will be counted as one hour. The formula is: Interest = Loan x (Daily Interest Rate/24) x Hours (as specified) in the term.
- What is the minimum amount I can borrow in a single loan?
The minimum amount you can borrow in a single loan is equivalent to 200 USDT. This is calculated based on the index price of the coin/USDT. Please note that this is the limit set in phase 1 and may be subject to changes in the future phases.
- What is the maximum amount I can borrow in a single loan?
The maximum amount you can borrow in a single loan is determined based on either your account limit or the fund pool availability, depending on which is smaller. The account limit is an individual borrowing limit set for each coin based on your account level.
- What happens during liquidation and collateral deficit?
When the LTV ratio reaches the liquidation LTV ratio, the system executes the liquidation process, where the collateralized asset is sold to generate funds for loan repayment. If a collateral deficit occurs (when the collateral is lower in value than the total debt), it will be compensated by the Crypto Loans insurance fund.
Please be informed that all the interest rates and information contained in the illustrations within this article are for illustrative purposes only and are not to be taken as actual representations. To access the most current and accurate details regarding interest rates and other information, kindly visit the official Bitget Crypto Loan homepage.
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