1. What are the requirements for using CoinEx loans?
As long as you are a registered CoinEx user, and have completed 2FA authentication, you can use CoinEx Loans. No additional requirements.
2. What can I do with the borrowed coins?
The borrowed coins can be used for trading, investing in financial services for higher returns, withdrawals, or anything else at your own discretion.
3. What coins are supported for borrowing and lending?
CoinEx supports borrowing and collateral for a variety of cryptos. Please check the [Loans] page for details.
4. How long is the loan term?
When users borrow on CoinEx, each new loan generates a loan order, which has a loan term of 10 days (calculated from the creation time of the user's loan order). At the end of the 10-day period, the system supports real-time automatic loan renewal for users.
(1) Automatic renewal is enabled by default when borrowing. At the end of the 10-day period, if the platform's liquidity pool can support renewal, it will process the automatic renewal for users in real time.
(2) If CoinEx's liquidity pool does not support renewal, the expired order will enter a 7-day grace period, where the automatic renewal is triggered every 24 hours.
If renewal is successful, the process ends. If not, it waits 24 hours before triggering again.
If renewal is still unsuccessful after the 7-day grace period expires, the repayment process is initiated (priority given to repayment from the spot account → if insufficient, forced liquidation of collateral currencies is initiated).
Note: During the grace period, hourly interest is still calculated, with the interest rate based on the user's daily rate from the previous borrowing cycle.
(3) Users can choose to disable automatic renewal. At the end of the 10th day, the system will execute repayment from spot balance or forced liquidation of collateral. If users choose to disable automatic renewal when borrowing, they can still choose to enable it after borrowing.
5. How are borrowing interest rates calculated?
Once the loan is successful, the interest will be charged for the first time. After that, it will be calculated hourly at each o’clock sharp based on the to-be-repaid loan amount (Interests are not compounded).
- Initial interest = Single loan amount * Daily interest rate / 24
- Subsequent hourly interest = Current to-be-repaid loan amount * Daily interest rate / 24
6. What happens if my current LTV gets too high?
If the current LTV is ≥ alert LTV, the system will prompt you to add more collaterals. If the current LTV is ≥ liquidation LTV, the system will automatically sell your collateral assets to repay the loan. Please add collateral in time to avoid forced liquidation.
7. How can I prevent risks from market fluctuations?
The lower the current LTV, the safer it is. You can add more collateral assets to keep the ratio within a safe range.
8. Is partial repayment supported?
Both full and partial repayments are supported. After partial repayment, the remaining loan amount must meet the minimum borrowing quantity. If this condition is met, repayments are applied to orders chronologically. If not met, the repayment will be rejected.
E.g. User A has two loan orders and wants to repay 1020 USDT partially. The minimum borrow amount is 50 USDT.
- Order 1000001: 60 USDT borrowed, can be fully repaid, leaving 960 USDT (1020 - 60) for further repayment.
- Order 1000002: 1000 USDT borrowed. After repaying 960 USDT, 40 USDT would remain, which doesn't meet the 50 USDT minimum threshold.
Therefore, this partial repayment fails as it doesn't meet the requirements.
9. Can I use my collateral to repay the loan?
Yes, but this option is only available for full repayment of the loan, not partial repayments. The system automatically converts your collateral into the borrowed currency to settle the loan. However, be aware that this conversion process may involve some price slippage, and consider this risk carefully.
10. What is the difference between Crypto Loans and Margin Trading?
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Borrow via Margin Trading VS Borrow via Crypto Loans |
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| Borrow via Margin Trading | Borrow via Crypto Loans | |
| Definition | Using leverage to amplify assets and increase potential rewards through high-risk trading. The focus is on speculative trading with leverage. | Borrow assets by collateralizing high-value assets, often for hedging or gaining access to trendy cryptos or stablecoins. |
| Usage | Amplify assets for trading. | Borrow coins for trading, consumption, or other utility purposes. |
| Leverage | 3X - 10X | 1X |
| Restrictions | The borrowed assets are allocated in the Margin account, which has restrictions and risk limits on transferring or withdrawing the assets. | The borrowed assets are allocated directly to the spot account. No trading, transferring, or withdrawing restrictions on borrowed assets. |
11. How to check my borrowing rate?
You can find your rates on the Loan page or refer to Borrowing daily interest rate.