The overall transaction process will be: Login account > Go to Balances > Click Leveraged Account > Select trade pair > Click Transfer > Click Loans (leverage trading, long or short) > loan repayment
The details of the tutorial are as follows:
1. How to borrow token:
Login your account on BiKi.com and click Balances.
In the drop-down list, select Leveraged Account.
In the leveraged account page, select the trade pair e.g. BTC/USDT and click transfer
At the transfer page, confirm the token, account and amount to transfer and click confirm to proceed.
After transferring the tokens to your leveraged account, you can use these tokens as collateral to borrow, as shown in the figure below, click “Loans”.
The balance in the leveraged account determines the amount you can borrow, that is, borrowing at a fixed ratio of 3: 1 (3x). So, if you own 1BTC, you can borrow another 2BTC.
After confirming the borrowed token and amount, you may view the relevant information under “trade history” in the leveraged account.
Next, your leveraged account will be deposited with the token you borrowed. You can now use the borrowed tokens to carry out transactions, and at the same time you have a debt of XXXX tokens with the corresponding interest. The interest rate will be updated daily. You can view available tokens and corresponding interest rates under Fund List in your leveraged account
2. How to trade leverage:
If you wish to use the loaned token to trade, go to the leverage trading page and select the trading currency pair accordingly.
After selecting the trading currency pair, you can click the leveraged asset to view the asset status and choose to perform limit or market trading.
[Buy Long]: If the expectation is that the token price will rise, you can transfer funds to the leveraged account and borrow token from the platform. Buying target token at a lower price, sell at a higher price, repay loan and loan interest and earn the price differential.
In the case of Buy Long, you will need to borrow USDT to buy token at a low price and sell at a higher price to earn a profit.
[Sell Short]: If the expectation is that the token price will fall, you can transfer funds to the leveraged account and borrow token from the platform. Selling target token at a higher price, buy at a lower price, repay loan and loan interest and earn the price differential.
In the case of Sell Short, borrow the target token (e.g. BTC) to sell token at a high price and purchase at a lower price to earn a profit.
3. When carrying out leveraged trading, it is always important to track the explosive price and risk ratio. The risk ratio will change depending on the market movements, so if your predictions move opposite to the market, your assets may be liquidated. Please note that if assets are liquidated, you will be charged additional fees.
Risk ratio = value of all assets / (value of all borrowings + value of all accrued interest) * 100%
If your risk ratio drops to 110%, your assets will be automatically liquidated, which means that BiKi will sell your assets at the market price to repay the loan.
If you want to repay your loan, go to your leveraged account and under the trade history > current loan and select the loan you want to repay and click “repay” to proceed.
The amount you need to repay will be the sum of the total borrowing plus interest. Before proceeding, please ensure that your available balance is sufficient to make the repayment. Select the token and amount you want to repay, and then click "Repay". Please also note that interest will be paid first, and you can only repay using the same cryptocurrency.
If you want to transfer funds from the leveraged account back to the exchange account, click "Transfer" and use button (see red box in the screenshot) to change the transfer direction. Then select the token type and amount and click "Confirm".
No fees will be charged for such asset transfer. However, please note that if you currently have assets and liabilities, your risk ratio will increase as the assets in your leveraged account decrease. If your risk ratio rises to a certain level, your assets are likely to be liquidated. So before using this function, please make sure to understand the principles of leverage trading.