What Are Crypto Loans on Bybit?

Bybit Crypto Loans is a financial service that provides you with loans to meet your short-term liquidity needs. 

 

Bybit offers a variety of loanable assets at competitive interest rates, and you can use all supported assets in your Spot Account, Unified Trading Account or Funding Account as collateral to borrow against. 

 

For more information, please refer to Introduction to Crypto Loans.

What is the difference between fixed and flexible loans?

The main difference between a fixed loan and a flexible loan is that a fixed loan will have a fixed loan term by which you should have repaid your loan and interest fully at the repayment date. Moreover, the hourly interest rate will be fixed for the entire loan term. If it is not repaid by the repayment date, a grace period will be granted for the borrowed coins to be returned. However, you’ll be charged 3 times the hourly interest during the overdue period and your collateral will be liquidated to repay the loan and the interest if you fail to make the repayment by the end of the grace period. 

 

On the other hand, the flexible loan will not have a fixed repayment date which means that the loan can be repaid at any time. The interest rate for the flexible loan is not fixed and fluctuates hourly based on the market conditions, interest will continue to accrue hourly until the loan is fully repaid or liquidation triggered.

What are the requirements for using the Crypto Loans service?

There are no additional requirements. As long as you’re a registered Bybit user and have assets in your Spot Account, Unified Trading Account or Funding Account that can be used as collateral assets, you can borrow coins on Bybit.

What are the borrowable and collateral coins on Bybit Crypto Loans?

The borrowable and collateral assets include USDT, BTC, ETH and more. For more details, please refer to the Crypto Loans Data page.

What products can be traded on Bybit with borrowed assets?

The borrowed assets from Crypto Loans can be used for any products on Bybit. 

Can borrowed assets be withdrawn?

Yes. You can withdraw borrowed assets.

Does your Subaccount support Crypto Loans?

Yes, your Subaccount does support Crypto Loans.

Can I repay the loan in a different coin than the loan currency?

No, you can only repay it with the coins you borrowed. For example, if you have borrowed USDT, you can only use USDT to repay the loan. 

Where can I view my collateralized amount?

You can view it from My Borrowings page (on the Website) or go to your Active Loans page (on the App).

 

 

 

 

Alternatively, You can view your collateral amount from the Invested Products details on your Asset page. 

 

Which account can be used in Crypto Loan? 

In Crypto Loan, you can choose from Spot Account, Unified Trading Account, or Funding Account for various functions such as deducting collateral amount, crediting borrowed funds, repayment, and returning collateral. This flexibility allows you to manage your collateral and borrowed amounts according to your preferences and trading needs.

How long can the fixed loan term be?

Currently, loan periods of 7 days, 14 days, 30 days, 90 days and 180 days are supported. Users can return the borrowed coins at any time. You can visit the Crypto Loan Data page for more information.

How is the loan interest calculated?

The interest rate for Crypto Loan is floating and is subject to change on a real-time basis. For fixed-term loans, the interest rate is locked upon the confirmation of the loan, and interest is charged based on this locked rate. However, for flexible loans, the interest rate remains subject to hourly changes afterward

 

Upon loan confirmation, a first interest will be incurred immediately, and subsequent interest is calculated hourly, starting from the time of borrowing. The formula to calculate the loan interest is as follows:

 

Interest = Borrowed amount × Hourly interest rate

Where can I view my interest details?

On the Website, you can go to your Loans Order History → Borrowings & Repayments page →  Outstanding → Interest Balance to view your accrued interest balance. To view the hourly interest charged (only available for flexible loans), you can click on the Interest History.

 

On the App, you will be able to see the hourly interests for your ongoing loans by tapping on the list icon in the top right corner and then on Active Loans → Interest Balance. To view the hourly interest (only available for flexible loans), tap on the history icon on the upper right corner of your order details.

 

Can I repay all or part of my loan in advance?

You can repay at any time. Interest will be charged based on the actual borrowing time. Please note that loan durations of less than one hour will be counted as one hour.

How do I repay the principal and interest?

You can make manual repayments on the Order page. For more details, please refer to How to Get Started with Crypto Loan. Please note that your interest will be prioritized for repayment before your principal.

Can I use my collateral for repayment?

No, currently we do not support users to make repayment using their collateral. The collateral will only be returned to the user’s account when the loan is repaid. Borrowers will need to have the available balance of the respective borrowed coin for repayment.

Will the loan automatically be repaid when it is due?

Currently, automatic repayment is not supported. If your loan is not repaid before the maximum overdue time allowed, liquidation will be triggered.

What happens if the loan exceeds the repayment period?

Bybit allows users to be overdue for a certain period of time. Details are as follows:

 

 

Please note that you will be charged 3x the interest during the overdue period.

 

In order to repay within the allowable overdue period, you need to pay the additional interest generated at the same time. If the loan is not repaid beyond the maximum overdue time period, Bybit will liquidate the collateral assets and repay the loan assets and interest in full. A 2% liquidation fee will be charged.

What is the loan-to-value (LTV) ratio?

The loan-to-value (LTV) ratio refers to the ratio of the value of the assets that can be borrowed to the value of the collateralized coins. The value of the collateral is calculated using Bybit's last traded price.

 

The initial LTV ratio determines the first amount of coins that can be borrowed. It’s worth noting that the initial LTV ratio may vary for different collateral, which means that the initial amount of borrowable coins will also be different.

What happens if the loan-to-value (LTV) ratio keeps rising?

The following two situations may occur:

1. If the LTV ratio is higher than the Margin Call LTV ratio, you’ll receive a notification via email, SMS and push to remind you to deposit or transfer more collateral to your Spot Account or Funding Account (for users who upgraded to Unified Trading Account), or repay the borrowed coins.

2. If the LTV ratio is higher than the Liquidation LTV ratio, Bybit will liquidate your collateral assets to repay your loan and interest in full.

 

Note: It is strongly recommended for users to continue monitoring their account in case of risk alert delay or glitch. Bybit will not be held responsible for liquidations resulting directly or indirectly from this alert feature’s malfunction.

What happens if liquidation is triggered?

Your collateral assets will be used to auto-repay your loan and interest in full and a 2% liquidation fee will be charged. The liquidation fee will be deducted from your collateral amount and any remaining collateral after full repayment will be credited back to the account you have previously selected for collateral deduction. 

How do I adjust the collateral amount?

You can increase or decrease your collateral amount on the Order page.

 

By increasing your collateral amount, you can lower down the LTV ratio and therefore lower your liquidation risk.

 

To decrease your collateral amount, you can only reduce your collateral amount when the current LTV ratio is lower than the Initial LTV. The maximum reduction in collateral is the amount needed to bring the LTV ratio back to its initial level.

 

For more details, please refer to How to Get Started with Crypto Loan.