How do I borrow in spot mode?
What's Auto-borrow?
You can now borrow extra funds to boost your buying power at competitive rates.
In just a few clicks, you'll be able to borrow extra funds for spot trading.
How do I use Auto-borrow?
Head to the top Menu option and select Settings option under the Features category
Proceed to select Settings within the Features page
Select Account mode under the Trading mode option and switch your account mode to Spot mode
Enable the Auto-borrow mode by turning your account mode to Spot
Select Auto-borrow. You'll then see the funds available for borrowing and the amount of crypto assets you can purchase with these funds.
For example; if you're using BTC/USDT pairs, enter the amount of BTC you want to buy.
Select Auto-borrow and insert the amount as the first step
Check the borrowed funds required to complete your trade
Adjust the other details according to your preference
When you're ready, select the Buy BTC option. You'll be taken to the order confirmation page, where you can review the borrowing details and confirm your trade
Review your Auto-borrow details before confirming the process
How do I manage the loan?
To manage your loan, select Manage. In the Loan Management screen, insert the amount you wish to borrow in the borrowed amount field
Select Manage to proceed on adjusting the leverage
Select the designated section of the screen to access the leverage management screen where you can adjust your leverage
Make sure to review the margin ratio to confirm it aligns with your risk tolerance
Select the leverage for your loan as you prefer
To borrow more funds, select Borrow
As the leverage has been set, insert your preferred Borrow amount and observe the Estimated risk before proceeding to select Borrow
What are the ways to repay the loan?
There are two ways for you to repay the loan; first is by partaking in manual repayment, and the other option is by enabling auto repayment.
Manual repayment
You can choose to repay your loan manually by going to the Repay option within the Borrow management page
Select Repay on the Borrow management page and select the loan that you want to repay
Select the crypto you want to repay, enter the amount you'd like to repay, and then select Repay
Insert the repayment amount before selecting Repay
Auto repayment
For example, we're using the BTC/USDT pairs. If you already have a loan, you can input the amount of BTC you want to sell
Ensure all the necessary details, such as the price and repayment amount, are filled in correctly
Set the price at which you want to sell your BTC and the repayment amount
When you're ready, select the Sell BTC option. This will take you to the order confirmation page, where you can review the repayment details and confirm your order
Assess the repayment details before confirming your order
How do I review the margin level of my loan?
You can review your loan details in the Positions option, which also allows you to assess the associated PnL and margin level.
Switch the Positions option and review the loan details there
The margin level is categorized into four tiers: Low Risk, Medium Risk, High Risk, and Liquidation.
The margin level and their details as stated
Note: it's advisable to return the borrowed funds to avert liquidation, if your margin level reaches High Risk. Otherwise, the Asset will be reduced or liquidated if the margin level is equal or lower than 100%.
FAQ
When will interest in my borrowings occur?
The interest will be accrued and deducted on an hourly basis, calculated using the current Annual Percentage Rate (APR) of your borrowed crypto.
Why are my orders cancelled?
To prevent liquidation, our system assesses whether to cancel any outstanding orders before the user’s account reaches the liquidation threshold. This process is designed to help the user’s position drop below the critical risk threshold, avoiding immediate liquidation after certain orders are filled.
When will my account be fully liquidated?
Once the margin level falls to and below 100%, full or partial liquidation process will be triggered.
Why is the max borrowable when borrowing manually less than that of auto-borrow?
To calculate the max borrowable amount when borrowing manually, the leverage used will factor in the user's assets. This is to avoid the scenario where a user manually borrows but is unable to place orders with the borrowed crypto. For example, if a user's current leverage is 2x and the user manually borrows, the max borrowable amount will be calculated assuming that user is borrowing with 1x leverage.
What's the difference between placing auto-borrow orders and borrowing manually before trading?
Placing auto borrow orders provides convenience for users by combining both the borrowing and trading junctures together, whereas borrowing manually before trading allows users to split up the borrowing and trading junctures. Manual borrowing allows users to ensure that they are able to borrow the crypto required for the trade beforehand as the savings pool might be depleted.
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