Publikováno dne 28. 1. 2022Aktualizováno dne 6. 2. 2024Doba čtení: 5 min

How to use VIP loans

  1. Who can use VIP loans?

Clients who are VIP5 or above are eligible to use VIP loans service.

  1. Can I use VIP loans with sub-accounts?

Yes. However, the VIP loan quota is shared among master and sub-accounts.

  1. Why am I not able to see the VIP loans feature have met the VIP level requirement?

Please confirm if you're on the designated trading modes. VIP loans is only available in the following trading modes:

  • Single-currency margin mode

  • Multi-currency margin mode

  • Portfolio margin mode

You may switch your trading modes via settings -> account mode

After switching the trading mode and selecting "Manual Trading", you will be able to see "VIP loans" option near the "Max buy" field.

  1. Do I have to repay the VIP loans manually?

Yes, you will need to make repayment manually to release the borrow limit

  1. When would the interest be calculated?

Interest of VIP loans is accrued and deducted from account balance on an hourly basis. "Borrowed" amount will be used for interest calculation. It will take around 5 minutes to finish recording interest. Any borrowings that are incurred during this period will be recorded as well.

From the perspective of capital cost, borrowed amount is locked for the client and cannot be utilised by other clients. Even if you didn't open positions with the amount borrowed, interest will still be charged.

See tiered interest rate and fees for Market Borrow:

  1. I have opened a position before, how would the interest of liabilities be calculated after borrowing the VIP loans?

Liabilities will be seggreated automatically by the system and VIP loans will be prioritized. The borrowed amount from VIP loans will follow VIP loans interest rate, the other borrowings will follow market interest rate.

Assets and margin

  1. Where can I see the borrowed amount from VIP loans?
  • VIP loans popup window - "Borrowed" amount
Since VIP loans only impact the borrow limit for margin trading, this is not an extra capital that can be seen on the asset page and it will not change the initial margin.
  1. Can I withdraw the funds borrowed from VIP loans?
The borrowed amount from VIP loans is an additional limit quota instead of actual assets. You cannot withdraw it directly, but it will increase the withdrawal limit with the increased borrow limit.

Risk management

  1. Why am I unable to borrow the VIP loans?

The system will validate if the potential margin is sufficient when locking the VIP loans.

For multi-currency margin trading, it's determined by whether the margin in USD is sufficient to satisfy the initial margin required for locking VIP loans amount; For single-currency margin trading, it depends if the balance can cover daily interest amount.

  1. Why am I unable to repay the VIP loans?

Repayment of VIP loans will unlock the borrow limit, but liabilities still exists in another form. When you still have liabilities that utilize the VIP loans, the repayment will transfer this liability back to Market Borrow. If the Market Borrow available limit is insufficient, you will not be able to make the repayment. You may try to reduce the repayment amount or repay the actual liabilities.

  1. What will happen if I do not have enough balance to repay the interest?

The interest is calculated and deduced on an hourly basis. If the account doesn't have enough balance to pay the interest, the system will undergo forced repayment to unlock the borrow limit. If it happens that part of the liabilities is utilizing VIP loans borrowed amount, the liability will then be transferred to Market Borrow.

  1. Why am I unable to open a position even though I have borrowed the VIP loan successfully?

When users open a position, there's risk control validation. Ensure you have allocated sufficient margin to the required level or adjust the borrowings.

  1. How do liquidations work with VIP loans?

VIP loans itself will not affect the margin level and the liquidation logic. When there's no trades or liabilities, liquidation will never happen. VIP loans increase the borrowing limit, it's not an asset or actual liability.

When there's liabilities, for example: Borrow 1,000 USDT for 10 BTC

1 BTC is the margin, 1,000 USDT is the liabilities

The 1,000 USDT liability means that the user borrowed 1,000 USDT from the platform, which can come from the VIP loans pool or the market loan pool. If the user locked 1,000 USDT from the VIP loan, the borrowing will be all accounted from the VIP loan pool. When BTC price drops and user's margio ratio triggers liquidation, the system will close the position to reduce the liabilities.

After liabilities have been reduced to 800 USDT, VIP loans used amount is also reduced to 800 USDT. However, the VIP loans interest accrual will still use the borrowed 1,000 USDT for calculation