XT Crypto Loan: Flash loans backed with crypto assets
XT Crypto Loan is a financial product that allows users to borrow other cryptocurrencies using their cryptocurrency assets as collateral. XT Crypto Loan aims to provide users with immediate access to additional funds while maintaining control over their crypto holdings. The loan process is straightforward: pledge assets, get the loan, adjust collateral (if applicable), undergo liquidation (if applicable), pay interest, repay the loan, and redeem the collateral.
XT employs an innovative approach to the key risk assessment metric, the Loan-to-Value ratio (LTV), ensuring a secure loan environment. XT has established three LTV levels, tailored to the risks associated with collateral, to safeguard users' assets:
- Initial LTV: Initial LTV determines the maximum amount that can be borrowed initially. Loanable Value = Collateral Value * Initial LTV.
- Margin Call LTV: When the LTV reaches the Margin Call LTV, the system will notify the user to add more collateral to lower the LTV.
- Liquidation LTV: When The LTV reaches the Liquidation LTV, the system will liquidate the collateral to repay the total debt. Please add collateral promptly to avoid liquidation.
XT Crypto Laon will first launch a fixed-term loan service, offering loan terms of 7 Days or 30 Days. Once approved, the borrowed funds will be immediately credited to your spot account, with no additional transaction fees, and the funds can be withdrawn. You won't have to worry about interest rate fluctuations, as the rate is fixed for the duration of the loan and interest is accrued hourly. Early repayment for fixed-term loans incurs penalty interest. Repayment must be made in the loan currency, and once the loan is fully repaid, all collateral will be released immediately. Renewal can be initiated 24 Hours before the loan matures. Be mindful of the maturity date, and make sure you repay or renew the loan in time. If the loan becomes overdue, an overdue interest rate of 3 Times the normal loan interest will apply. If the overdue period exceeds 7 Days, the system will trigger forced liquidation. XT Crypto Loan offers a convenient, fast, and user-friendly experience.
XT promises an end-to-end ultimate cryptocurrency experience, and here's a quick guide on how to get started with XT Crypto Loan:
Operation Steps:
[Pledge Asset]
1. Log in to your XT account. New users please register first. Then choose [Finance] - [Crypto Loan] on the navigation bar.
2. After entering the Crypto Loan homepage, you will see a list of assets that can be borrowed and the fixed interest rate. After selecting the asset you want to borrow, click "Borrow" to enter the loan page.
3. Select your preferred Loan Term, Loan Currency & Amount, as well as Collateral Currency & Amount (collateral comes from the user's spot account) . Please carefully check the loan details, such as Annual Interest Rate, Initial LTV, Margin Call LTV and Liquidation LTV. After confirming the information, click "Confirm Borrowing" to submit the loan application. Once confirmed, your collateral will be transferred to the system collateral account for safekeeping.
[Get Loan]
XT will evaluate your application instantly, and upon approval the loan will be automatically credited to your spot account.
[Monitor Your Loan]
Click "View Orders" to visit the XT Crypto Loan homepage and check information about your loan orders and loan assets. To monitor your current loans, click on "Ongoing Orders". You can expand the details by clicking "View Details". Please keep an eye on the LTV to manage risks, and add collateral promptly to avoid liquidation.
[Adjust LTV]
In the Ongoing Orders section, click "Adjust LTV" to enter the adjustment page. You can slide the LTV bar or directly choose to add/remove collateral by entering the desired amount. After clicking "Confirm Adjustment", the LTV will be successfully updated, and the corresponding amount of collateral will be added to or deducted from your spot account. Please note that when removing collateral, the final LTV must not exceed the Initial LTV.
[Repay Loan]
Click "Repay" to enter the repayment page, where you can enter the repayment amount and choose to make a partial or full repayment. You can also select whether to release the collateral proportionally. If you check the option to release collateral proportionally, the collateral will be released in proportion to the repayment amount. If you choose full repayment, the entire collateral will be released. The repayment amount will be deducted from your spot account, and the collateral will also be sent to your spot account.
[Renew Loan]
Starting 24 Hours before the loan maturity, you can choose to renew the loan. Click "Renew" to enter the renewal page, where you can select the Loan Term, confirm the Loan Amount and Collateral Amount (which must match the current order and cannot be modified), as well as the Annual Interest Rate and LTV. Please note that any outstanding interest in the current order must be paid before renewal. After clicking "Confirm Payment and Renew Loan", the renewal will be successful, the original order will be closed after paying off the remaining interest, and a new loan order will be generated.
FAQs:
If you have any questions, here are some common FAQs to help you better understand XT Crypto Loan:
- What is the process for XT Crypto Loan?
The standard process includes pledging assets, obtaining a loan, paying interest, repaying the loan, and redeeming the collateral.
- What assets can be used as collateral?
XT supports various tokens as collateral, such as BTC, ETH, etc. Please visit the Crypto Loan page for the complete list.
- What are the minimum and maximum loan amounts?
The minimum loan amount is 100 USDT, calculated based on the Loan Asset / USDT price. The maximum loan amount depends on your account limit or available funds, whichever is lower. Account limit refers to the individual loan upper limit for each token (e.g., the individual loan upper limit for USDT is 1,000,000 USDT). Note that this limit applies to the initial product and may change in the future.
- Can the loan assets be withdrawn?
Yes, loan assets will be credited to your spot account without any restrictions and can be withdrawn.
- What is the Loan-to-Value ratio (LTV)?
LTV = Total Debt Value / Collateral Value. The LTV fluctuates with interest accrual and price changes of the loan and collateral assets. Monitor the real-time LTV closely. When LTV reaches Margin Call LTV, the system will notify the user to add more collateral to lower the LTV. When LTV reaches Liquidation LTV, the system will liquidate the collateral to repay the total debt. Please add collateral promptly to avoid liquidation.
- How is interest calculated?
For fixed-term loans, the interest rate is fixed for the term and is accrued hourly. Interest for less than an hour is calculated as one hour. Hourly Interest = Total Debt Amount * Hourly Interest Rate.
- How to adjust the LTV?
Ongoing loan orders support LTV adjustments. Users can choose to add or remove collateral. Adding collateral lowers the ratio, while removing collateral increases it. When removing collateral, ensure that the final LTV does not exceed the Initial LTV.
- What is the repayment process?
- Can I repay with a different currency from the loan currency?
No, currently repayments must be made in the loan currency.
- Can I make partial repayments?
Yes, partial repayments are allowed. After a partial repayment, the LTV and total debt amount will be updated accordingly.
- Can the loan orders be renewed?
Renewal can be initiated starting 24 Hours before the loan's expiration. You can select a new loan term, with the loan amount and collateral amount matching the current order. Outstanding interest in the original order must be paid before renewal.
- What happens if the loan is overdue?
Overdue loans incur interest at 3 Times the normal rate, and if overdue by more than 7 Days, the system will trigger forced liquidation. Please be mindful of the expiration date and ensure timely repayment or renewal.
- What is forced liquidation?
Forced liquidation occurs when the LTV reaches the Liquidation LTV or the loan is overdue by more than 7 days. During liquidation, the system will sell the collateral, convert it to the loan currency to repay all debts, and return any remaining collateral to your spot account. A 3% liquidation fee applies. If collateral is insufficient to cover all the debt, the loss will be covered by Crypto Loan's Risk Protection Fund.