1. Liability
In the unified margin (UM) mode, both users in borrowing or non-borrowing modes may have liabilities. BIT provides users with an interest-free amount. If the liability exceeds the interest-free amount, interest is charged on the full amount of the liability. If the liability exceeds the borrowing limit, auto repayment is triggered. (please see the auto repayment section).
2. Interest calculation and deduction
Interest is calculated and deducted at different time intervals for UM borrowing mode users.
Interest calculation: Interest is calculated once an hour and based on the user's liability amount and borrow rate at the calculation time.
Interest deduction: Every 24 hours at 8:00 UTC.
Accrued interest: Accumulated undeducted interest from the last settlement time(8:00 UTC) to the latest interest calculation time.
3. Raise limits
Please refer to the latest information on BIT for the default borrowing limit and interest-free amount for UM users.
If you would like to raise your borrowing limit, please contact your client manager.
4. Repay the liabilities
To avoid paying interests, you can repay the liability or reduce it to the interest-free level before the interest calculation time in three ways:
- Make deposit to the deficit currency account under unified account
- Buy deficit currency through spot trading
- Transfer balance from Matrixport account to the deficit currency account under the unified account.
5. Example of interest calculation & deduction
Assuming a user's BTC interest-free amount is 0.2 BTC, the user's borrowing history and interest accrual are shown below.
|
Time (UTC) |
Event |
Hourly interest calculation |
Accrued interest (Current session) |
|
5: 30 |
User borrowed 1 BTC |
- |
0 |
|
5: 55 |
User repaid 0.8 BTC through depositing. Current liability: 0.2 BTC |
- |
0 |
|
6: 00 |
Interest calculating time |
Interest: 0 (Liabilities within the interest-free amount will not be charged interest) |
0 |
|
6: 20 |
User borrowed another 0.2 BTC Current liability: 0.4 BTC |
- |
0 |
|
7: 00 |
Interest calculating time |
Interest: 0.4BTC * 0.01% (current hourly borrow rate)= 0.00004 BTC |
0.00004 |
|
8: 00 |
Interest calculating time Interest deducting time |
1.Interest: 0.4BTC * 0.01%= 0.00004 BTC 2.Interest deduction: The system deducted the accrued interest during the current session (0.00008 BTC). |
0.00008 (Cleared after interest deduction) |
Note: the interest rate in the example above is for reference only. Please view the asset page for real-time interest rates.
6. Risk Disclosure
(1) BIT calculates the hourly accrued interest based on the borrow rate and the user’s liabilities every hour on the hour, you can follow the hourly borrow rate changes on BIT.
(2) If the server shuts down unexpectedly 15 minutes before or at the calculation time, the interest will be re-calculated 15 minutes after the server restarts.