XT Crypto Loans is a crypto financial service that allows users to stake digital assets to borrow other cryptocurrencies, enabling flexible financing while allowing users to retain control over assets. The process is simple and intuitive: Stake assets → Obtain the loan → Pay interest → Repay the loan → Redeem collateral.
Core Advantages
- Instant loan disbursement to spot account, 0 fees
- Flexible terms: flexible, 7-day, 30-day, etc.
- Hourly interest calculation with locked rates for fixed-term loans
- Supports withdrawals and early repayment (early repayment for fixed-term loans incurs a penalty)
Risk Control Mechanism (Loan-to-Value Ratio, LTV)
XT implements three LTV tiers to ensure asset safety:
- Initial LTV: Determines the initial borrowable amount; Loan Value = Collateral Value * Initial LTV.
- Warning LTV: Triggers a reminder to add more collateral.
- Liquidation LTV: Triggers automatic liquidation to prevent escalating asset risks.
XT is committed to delivering an end-to-end premium cryptocurrency experience. Below is a quick guide to using XT Crypto Loans:
Similarities Between Fixed-Term and Flexible Crypto Loans:
- Hourly Interest: Interest is calculated hourly, transparently, and accumulates in real-time.
- Flexible Repayment: Users can repay at any time, with the freedom to borrow and repay as needed.
- Adjustable LTV: Users can manage their collateral ratio by adding or withdrawing collateral assets, enabling better risk control.
Differences:
- Expiration Date:
- Fixed-Term Loans: Have a set maturity date. No forced liquidation at maturity, but overdue loans will incur a penalty rate—3 times the standard hourly interest. If overdue for more than 7 days, system liquidation will be triggered.
- Flexible Loans: No expiration, allowing long-term holding without overdue fee pressure.
- Interest Rate Mechanism:
- Fixed-Term Loans: The interest rate is locked at the time of borrowing and remains unchanged during the loan period.
- Flexible Loans: Interest rate fluctuates hourly based on market supply and demand.
How to Operate:
【Stake Assets】
Please log in to your XT account; new users must register first. Then, select 【Finance】 - 【Crypto Loan】 from the navigation bar.
After entering the Crypto Loan homepage, you will see a list of assets available for borrowing, along with the current interest rates. Select the asset you wish to borrow and click “Borrow” to proceed.
Choose the cryptocurrency you want to borrow and click the 【Borrow】 button on the right. In the pop-up menu, select 【Flexible-Fixed Rate】, and enter the borrowing amount and the type of asset that will be used as collateral. The system will automatically display the corresponding annualized interest rate and estimated hourly interest. After confirming the details, click 【Confirm Borrowing】to complete the process.
【View Orders】
Click “Ongoing” to visit the XT Crypto Loan homepage to monitor your borrowing orders and asset information. Click “Ongoing Orders” to check the status of your current loans. You can click “View Details” to expand and view order details. Please monitor the Loan-to-Value (LTV) ratio in real-time and add collateral promptly to avoid liquidation.
To view past orders, go to the 【History】 tab at the top of the page.
【How to Repay】
Return to the 【Ongoing Orders】 page, click 【Repay】, then enter the repayment amount in the menu and click 【Confirm Repayment】 to complete the process.
When repaying, interest will be deducted first, and the remaining amount will be applied to the principal. Please note that unpaid interest will be added to the total debt, increasing the overall LTV ratio.
【Adjust LTV】
Click 【Adjust LTV】, then enter the amount of additional cryptocurrency to be staked in the 【Add Collateral】 field. The system will automatically display the estimated LTV ratio after adjustment. Then confirm the details and click 【Confirm Adjustment】 to complete the process.
Frequently Asked Questions:
If you have further questions, here are some common questions and answers to help you better understand XT Crypto Loans:
What is the process for Collateral Loans? The standard lending process includes staking assets, obtaining a loan, paying interest, repaying the loan, and redeeming the collateral.
Which 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 limits for a single loan? The minimum loan amount is 10 USDT, calculated based on the price of the borrowed asset in USDT. The maximum loan amount depends on your account limit or the available funding pool, whichever is lower. The account limit refers to the individual borrowing cap for each asset (e.g., the USDT personal borrowing limit is 1,000,000 USDT). Note that these limits are for the initial product and may change in the future.
Can borrowed assets be withdrawn? Yes, borrowed assets are credited to your spot account without restrictions and can be withdrawn.
What is Loan-to-Value (LTV) ? LTV = Total Debt Value / Collateral Value. The LTV changes with interest accrual and price fluctuations of the borrowed and collateral assets. Please monitor the real-time LTV ratio. When the LTV reaches the warning threshold, the system will notify you to add collateral to lower the ratio. If the LTV reaches the liquidation threshold, the system will liquidate the collateral to repay the full debt. Add collateral promptly to avoid liquidation.
How is interest calculated? For fixed-term loans, the interest rate is fixed for the term, calculated hourly, with less than an hour counted as one hour. Hourly Interest = Total Debt * Hourly Interest Rate.
How to adjust the LTV? Ongoing loan orders allow LTV adjustments, where you can add or remove collateral. Adding collateral lowers the LTV, while removing collateral increases it. When removing collateral, please ensure that the final LTV does not exceed the initial LTV.
What is the repayment process? The repayment process includes receiving a repayment notice, determining the repayment amount (partial or full repayment), and making the repayment. Early repayment is supported, but fixed-term loans may incur a penalty for early repayment. You can choose to release collateral proportionally based on the repayment amount, or, for full repayment, all collateral will be released.
Can a different asset be used to repay the loan? Sorry, repayment in a different asset is not currently supported. You must repay using the borrowed asset.
Is partial repayment allowed? Yes, partial repayment is allowed. After partial repayment, the LTV and total debt will be updated accordingly.
What happens if a loan is overdue? If a loan is overdue, overdue interest will be charged at three times the normal borrowing interest rate. If the loan remains overdue for more than 7 days, the system will trigger liquidation. Please monitor the loan due date and repay or extend the loan promptly.
What is forced liquidation? When the LTV reaches the liquidation threshold or the loan is overdue for more than 7 days, the system will initiate forced liquidation. During liquidation, the system will sell the collateral to repay all outstanding debts in the borrowed asset. Any remaining collateral will be returned to your spot account. A 3% liquidation fee will be charged. If the collateral is insufficient to cover the debt after liquidation, the shortfall will be covered by the Crypto Loan Risk Protection Fund.