1. Trading Fees
Both Maker and Taker will enjoy the same rate at 0.15%
2. How to calculate risk ratio?
Total assets (principal amount + borrowed amount) / (borrowed amount + outstanding interest) * 100
3. Leverage Mode and Liquidation
Currently only position-by-position leverage mode is supported on our platform and once the risk ratio of the leverage account drops to 110%, the system will automatically trigger a liquidation.
4. The maximum loan that a user can apply
The maximum loan that a user can apply = MIN ((net assets equivalent in USDT)*(multiplier of -1) - (borrowed assets), the remaining pool of the underlying token, the maximum loan for a single user e.g. the platform supports a maximum leverage of 3 times, the maximum loan a user can borrow will be 2 times of their principal amount.
Amount that can be transferred to an Exchange Account = Principal amount – Borrowed amount – 2 * unpaid interest (portion greater than 0 can be withdrawn)
5. How is interest calculated?
Interest is calculated daily at 00:00 hours. Interest = Assets to be borrowed * daily interest rate * loan tenure (charged daily, less than 1 day will be calculated as 1 day)
Interest-free during beta test period and the interest will be returned to the user’s account after the beta test e.g. using BTC/USDT as an example, if the loan amount is 17000USDT with a loan tenure of 3 days at a daily interest rate of 0.04%, a handling fee of 20.4USDT is required.
6. Leverage Multiples
Currently the platform supports a maximum leverage of 3 times, e.g. 1 USDT can borrow 2 USDT and the available balance in the account will be 3 USDT.
7. Liquidation of Pending Orders
When a user’s liquidation status and risk ratio fall below 110%, the platform will restrict user’s trading activity and cancel all existing pending orders as per the liquidation process until all loaned assets and interests are repaid before terminating the liquidation process. The account will be in a risk-free state after the liquidation and user may transfer any remaining assets out.
8. How will the arrears be calculated and repaid if the account slips into negative balance?
When an account slips into negative balance, the Leveraged Account Assets < Loaned Amount + Interest. In this situation, the following outstanding fees will be incurred: Fee Amount Owed = Loaned Principal + Interest – Leveraged Account Balance