What Is the Margin Borrowing Interest Rate?
1. The borrowing interest is the fee you pay for borrowing cryptocurrencies in margin trading, which is calculated based on your borrowing amount and the interest rate for the corresponding asset.
2. The borrowing interest rate for each cryptocurrency fluctuates in real time according to the supply and demand dynamics and is updated hourly, as displayed on the [Borrow] page.
3. The daily borrowing interest rate varies with your VIP Level. Users from VIP 1 to VIP 5 enjoy exclusive preferential rates. Please refer to the "Fees Standard" page for details.
Rules of Borrowing Interest Rate
1. Interest calculation
Each borrowing order is calculated independently based on the real-time rate at the moment of borrowing. Interest is first calculated upon successful borrowing and subsequently calculated on an hourly basis.
2. Repayment rules
(1) The system prioritizes repayment of the earliest loan orders, first covering interest and then the principal.
(2) Once both the principal and interest of a borrowing order are fully repaid, the order status will be marked as “Paid”, and interest accrual stops.
3. Borrowing cycle
(1) The current borrowing period is 10 days, with the auto-renewal feature enabled by default.
(2) If the loan is not repaid before the due date, Auto Repayment will be triggered automatically.
4. Auto-renewal rules
(1) Renewal mechanism: At the end of the borrowing period, the system will automatically renew the loan based on the latest borrowing rate and borrowing cycle.
(2) Renewal notice:
- If Auto-renewal is disabled, expiration alerts will be sent to users 72 hrs, 24 hrs, 8 hrs, and 1 hr before the due time.
- If Auto-renewal is enabled but fails due to insufficient balance in the loan pool, the system will notify the user immediately and extend the loan due time by 24 hours. If the user does not repay after this period, the system will attempt to renew again. If this second attempt fails, the automatic repayment process will be initiated.
5. Asset distribution and repayment in special cases
In special events such as airdrops, forks, or any other situations where new valuable assets are generated, the specific rules for asset distribution and loan repayment will follow official announcements published by CoinEx.
Risk Reminder
1. Margin trading amplifies potential returns through borrowed funds, but it can also expose you to amplified losses if the market moves against your expectations. Margin trading carries risks. Traders should avoid opening positions with high leverage to prevent forced liquidation or bankruptcy during extreme market conditions.
2. Please use leverage prudently, manage your positions effectively, and set appropriate take-profit and stop-loss strategies to control potential risks.
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