What is BingX Loan
BingX Loan is a financial service that offers user funds to meet short-term liquidity needs. With this service, you can borrow funds without selling your cryptos. By pledging your crypto and paying interest, you can borrow hot tokens like BTC, ETH and XRP, or stablecoins like USDT and USDC.
Advantages
Ultra-Low Interest Rates: Enjoy competitive ultra-low interest rates with hourly interest calculations and the flexibility to repay anytime.
Flexible Allocation: Borrowed funds can be used for various platform features such as Spot Trading, Futures Trading or Wealth product subscription. You can also withdraw the borrowed funds for use outside the platform.
Example Scenario
User A holds a BTCUSDT long position in Perpetual Futures and also has ETH Spot assets.
If the BTCUSDT price drops and there is insufficient margin for the Perpetual Futures position, User A can pledge their ETH Spot assets to borrow USDT. The borrowed USDT can then be transferred to the Perpetual Futures Account to increase the margin and prevent liquidation.
When the BTCUSDT price increases, User A can transfer the USDT from the Perpetual Futures Account to the Fund Account to repay the borrowed principal and interest.
For BingX VIP users, the loan interest rates are as follows:
| VIP Tier | Discount |
| VIP 0 | - |
| VIP 1 | 5% OFF |
| VIP 2 | 5% OFF |
| VIP 3 | 10% OFF |
| VIP 4 | 10% OFF |
| VIP 5 | 15% OFF |
| Supreme VIP | 20% OFF |
FAQs
1. What is Loan-to-Value Ratio (LTV)?
Loan-to-Value Ratio (LTV) is a key indicator for accessing the risk level of the borrowed assets. It's evaluated through:
Initial LTV: This determines the amount of the first loan you can borrow. Different types of collateral may have different initial LTVs, which affects the amount of tokens you can borrow initially.
Margin Call LTV: If you exceed the Margin Call LTV, you'll receive email, SMS and push notifications reminding you to deposit or transfer more collateral to your Fund Account. Alternatively, you can repay some of the borrowed tokens to lower your LTV.
Liquidation LTV: If you exceed the Liquidation LTV, the platform will liquidate your collateral to fully repay the loan and interest. Please note that reaching the corresponding Liquidation LTV will trigger liquidation.
Calculation Formula
LTV = Loan amount ÷ Collateral amount
Loan amount = ∑ (Outstanding principal + Interest due)
2. How to calculate Loan interest?
BingX currently offers flexible-term loans with interest calculated hourly. Any partial hour is counted as a full hour.
For example: User A repays the loan at 12:30, so the interest rate announced at 12:00 will be used to calculate the interest. User A will be charged for the hour from 12:00 to 13:00.
3. Why is there risk of liquidation when using BingX Loan?
Liquidation Price
When the last trading price and the index price reaches the liquidation price, BingX will liquidate the collateral used to fully repay the loan and interest.
Calculation Formula
Estimated liquidation price = (Outstanding principal + Interest due) ÷ (No. of collateral x Liquidation LTV)
Example
Assume that User A's loan parameters are as follows:
Collateral Asset: ETH
Borrowable Asset: USDT
Outstanding Principal: 1,000 USDT
Interest Due: 10 USDT
No. of Collateral: 2 ETH
Liquidation LTV: 85%
Liquidation price = (Outstanding principal + Interest due) ÷ (No. of collateral x Liquidation LTV)
Based on the following calculation, the liquidation price is 594.117647 USDT:
(1,000 + 10) ÷ (2 × 0.85)
BingX Official Channels
Telegram: https://t.me/BingXOfficial
Twitter: https://twitter.com/BingXOfficial
YouTube: https://www.youtube.com/bingx
Risk Disclaimer
Cryptocurrency prices are subject to high market risk and price volatility. You should only invest in products that you are familiar with and where you understand the associated risks. You should carefully consider your investment experience, financial situation, investment objectives and risk tolerance and consult an independent financial adviser prior to making any investment. This material is for reference only and should not be construed as financial advice. Past performance is not a reliable indicator of future performance. The value of your investment can go down as well as up, and you may not get back the amount you invested. You are solely responsible for your investment decisions. BingX is not responsible for any losses you may incur.
BingX attaches great importance to compliance and has strictly abided by local regulations. Please obey local laws and regulations in your country or region. BingX reserves the right in its sole discretion to amend, change, or cancel this announcement at any time and for any reason without prior notice.
For more information, please refer to our Terms of Use and Risk Warning.