Bitget Crypto loans: Answers to Commonly Asked Questions

2023-07-18 07:370347

1. 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.

2. 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.

3. 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.

4. 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.

5. 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

6. 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.

7. 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.

8. 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.

9. 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.

10. 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.

Disclaimer

Cryptocurrencies are subject to high market risk and volatility despite high growth potential. Users should conduct their own research and invest at their own discretion. Bitget shall not be liable for any investment losses.

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