Dear MEXCers,
To meet users' asset needs, MEXC will be launching its MEXC Loans service. MEXC Loans allows users to collateralize one of their cryptocurrency assets to borrow another that they can then use for spot trading, derivatives, high-yield investment, or withdrawal.
MEXC Loans will launch the first collateral asset, TON, at 2023-11-11 05:00 (UTC). The details are as follows:
Collateral Asset | Loanable Asset | Loan-to-Value Ratio (LTV) | Liquidation LTV | Loan Term | Daily Interest Rate | Overdue Interest Rate |
TON | USDT | 30% | 40% | 30 days | 0.0100% | 0.0300% |
60 days | ||||||
90 days |
Definitions:
- Loan-to-Value Ratio (LTV): A crucial indicator assessing the risk level of borrowed assets, calculated as the ratio of the liability asset value to the collateral asset value.
- Formula: After borrowing, LTV = Outstanding Asset Value / Collateral Value.
- Liquidation LTV: When the Loan-to-Value Ratio reaches the Liquidation LTV, collateral assets will be forcibly liquidated to repay the loan and interest.
For Example:
Suppose a user pledges Asset A to borrow USDT, with a collateral asset value of 100,000 USDT and a Loan-to-Value Ratio (LTV) of 30%. In this scenario, the user can borrow up to 30,000 USDT.
After borrowing, the platform will manage and monitor the collateral assets, charging interest based on the borrowed amount. At a certain point, if the value of the user's collateral assets falls below 30,000/40% USDT, ie. 75,000 USDT, forced liquidation will be triggered and repayment will be initiated.
Note: For calculation purposes, the example assumes a daily interest rate of 0. Actual daily interest rates may vary based on the specific product.
Please note：
- The earliest repayment time is 30 days after the loan (counted from the borrowing date). Early repayment or partial repayment is not supported.
- There is a 3-day grace period after the due date during which the interest rate will continue at the standard rate. 3 days after the due date, the interest rate will rise to the overdue rate.
- Interest is calculated daily after borrowing (based on UTC+8). Partial days will count as full days.
- Market makers and institutions are not allowed to participate in MEXC Loans.
- Sub-accounts are not allowed to participate in MEXC Loans.
For more information, please visit the MEXC Loans page.
Please contact online customer service if you have any questions. Thanks for your support!
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Enjoy trading on MEXC.
The MEXC Team
11 November 2023
