FAQ About Loans

About Loans

CoinEx Loans is a financial service designed to meet your short-term liquidity needs.

Without selling these assets, you can borrow one type of crypto asset by using one or more cryptos as collateral, and the borrowed assets can be used for trading, investing in financial products, or withdrawing.

🔗 Learn more: Introduction to Loans >>

1. What are the requirements for using CoinEx Crypto Loans?

As long as you are a registered CoinEx user and have bound 2FA, you can use CoinEx Crypto Loans. No additional requirements.

2. What can I do with the borrowed coins?

The borrowed coins can be used for trading, investing in financial services for higher returns, or withdrawals.

3. What coins are supported for borrowing and lending?

CoinEx supports borrowing and collateral for a variety of cryptos. Please check the "Loans" page for details.

4. How long is the loan term?

When users borrow on CoinEx, each new loan generates a loan order, which has a loan term of 10 days (calculated from the creation time of the user's loan order). At the end of the 10-day period, the system supports real-time automatic loan renewal for users.

(1) Automatic renewal is enabled by default when borrowing. At the end of the 10-day period, if the platform's liquidity pool can support renewal, it will process the automatic renewal for users in real-time.

(2) When the automatic renewal status of a loan order is turned on, if the renewal fails due to system reasons, a renewal failure notification will be triggered, and the expiration time of the corresponding loan order will be extended by 7 days. During the grace period, automatic renewal will be triggered for the user every 24 hours.

• If renewal is successful, the process ends. 
• If not, wait for the next renewal trigger until the 7th day; if the 7-day grace period expires and the renewal is still not successful, start the repayment process. (Prioritize spot account repayment, and initiate forced liquidation of the mortgage currency if the amount is insufficient)

Note: During the grace period, hourly interest is still calculated, with the interest rate based on the user's daily rate from the previous borrowing cycle.

(3) Users can choose to disable automatic renewal. At the end of the 10th day, the system will execute repayment from the spot balance or forced liquidation of collateral. If users choose to disable automatic renewal when borrowing, they can still choose to enable it after borrowing.

(4) If a position contains multiple loan orders, disabling auto-renewal for any one of them will disable auto-renewal for all orders within that position. After auto-renewal is disabled, the system will repay the loan based on the order with the earliest expiration time under that position.

5. How are borrowing interest rates calculated?

Once the loan is successful, 1-hour interest will be generated immediately. After that, it will be calculated hourly at each o’clock sharp based on the to-be-repaid loan amount (Interests are not compounded).

• Initial interest = Single loan amount * Daily interest rate / 24
• Subsequent hourly interest = Current to-be-repaid loan amount * Daily interest rate / 24

6. What happens if my current LTV gets too high?

If the current LTV is ≥ alert LTV, the system will prompt you to add more collaterals. If the current LTV is ≥ liquidation LTV, the system will automatically sell your collateral assets to repay the loan. Please add collateral in time to avoid forced liquidation.

7. How can I prevent risks from market fluctuations?

The lower the current LTV, the safer it is. You can add more collateral assets to keep the ratio within a safe range.

8. Is partial repayment supported?

Both full and partial repayments are supported. After partial repayment, the remaining loan amount must meet the minimum borrowing quantity. If this condition is met, repayments are applied to orders chronologically. If not met, the repayment will be rejected.

E.g., User A has two loan orders and wants to repay 1020 USDT partially. The minimum borrowing amount is 50 USDT.

• Order 1000001: 60 USDT borrowed, can be fully repaid, leaving 960 USDT (1020 - 60) for further repayment.
• Order 1000002: 1000 USDT borrowed. After repaying 960 USDT, 40 USDT would remain, which doesn't meet the 50 USDT minimum threshold.

Therefore, this partial repayment fails as it doesn't meet the requirements.

9. Can I use my collateral to repay the loan?

Yes, but this option is only available for full repayment of the loan, not partial repayments. The system automatically converts your collateral into the borrowed currency to settle the loan. However, be aware that this conversion process may involve some price slippage, and consider this risk carefully.

10. What is the difference between Crypto Loans and Margin Trading?

11. How to check my borrowing rate?

You can find your rates on the "Loans" page or refer to "Borrowing daily interest rate" page.