Crypto Without Limits: Your Ultimate Guide to Bitget's Flexible Loans

In 2024, Bitget has launched the groundbreaking Bitget Crypto Loans. This innovative service allows you to leverage your cryptocurrency assets as collateral to borrow other cryptocurrencies. It is designed to help you strengthen and expand your investment portfolios, aligning perfectly with the rapidly changing market dynamics. In response to growing demand, Bitget has further refined the loan service by introducing a new option: Flexible Crypto Loans.

What sets Bitget’s Flexible Crypto Loans apart is the adaptability—offering flexible repayment options, dynamic interest rates, and the ability to generate income from collateral. This means you can maximize liquidity and capitalize on market opportunities like never before.

Go to Bitget Flexible Loans!

What Sets Fixed and Flexible Loans Apart?

Shared Features:

1. Hourly Interest: Both loan types calculate interest hourly, allowing for precise tracking of your borrowing costs.

2. Flexible Repayment: You can repay your loan at any time without incurring penalties, giving you control over your finances.

3. Collateral Adjustment: Adjust your loan’s collateral ratio by adding or withdrawing collateral to suit your needs.

4. Versatile Repayment Options: Both options support repayment using either the borrowed currency or the collateral.

Key Differences:

1. Maturity Date:

- Fixed Loan: Comes with a set maturity date. While the loan won’t be forcefully liquidated after maturity, you'll need to pay interest at a rate of 200% per hour as a late fee.

- Flexible Loan: Has no maturity date, and there are no late fees.

2. Interest Rate:

- Fixed Loan: The interest rate is locked in when the loan is created, providing certainty.

- Flexible Loan: The rate fluctuates based on the market’s demand and supply for the borrowed currency, with updates every hour to reflect current conditions.

3. Collateral Management:

- Fixed Loan: The collateral is stored in a dedicated account, doesn’t count towards your assets, and doesn’t generate income.

- Flexible Loan: The collateral is also stored separately, but the system automatically subscribes to Bitget earnings on your behalf, generating additional income for you.

How to Get Started with Bitget's Flexible Loan

1. Borrowing Crypto

Step 1: Head to the Bitget homepage, click on Earn in the navigation bar, and then select Crypto Loans.

Step 2: Choose the cryptocurrency you wish to borrow, click on Borrow next to it, and then select the Flexible loan from the 'Loan term' menu.

Enter the amount of cryptocurrency you want to borrow and the collateral you’ll provide. You'll instantly see the annualized interest rate and estimated hourly interest. Once everything looks good, click Confirm to complete the process.

Notes:

1. Each loan will form a separate, independent order. For example, if you borrow USDT with BTC as collateral at one time and do the same action an hour later, two separate orders will be created, and they will not be merged.

2. You can have up to 10 active flexible loan orders at any time in one account.

3. Ensure you have enough collateral available in your spot account before borrowing.

4. The system checks your spot account’s available balance before approving a flexible loan. If sufficient, assets are directly transferred to the collateral account, and the loan is granted.

a. Exclusive bonus: After the loan order is successfully created, the collateral is stored separately, but the system will automatically subscribe to earn products on your behalf, offering you additional income.

b. The exact yield can be viewed on the earn page .

5. Release of collateral

a. Repayment: After repayment, the collateral will be returned to the spot account, and you can choose not to retrieve the collateral temporarily.

b. LTV rate adjustment: After you adjust the LTV rate, some collateral may be released according to the adjustment direction.

c. After repayment or adjustment of the LTV rate, if you choose to retrieve the collateral, the financial subscription amount of the collateral will be reduced accordingly.

2. Managing Your Loan Orders

Step 1: To view your ongoing loan orders, return to the Loan page and click Ongoing loans in the top left corner. Here, you can see your current loan orders and click on Interest details to view the hourly interest earned.

Interest rate calculation rules

1. Actual floating interest rate: interest rates fluctuate every hour according to market supply and demand, and actual loan interest rates are charged every hour according to the latest interest rate.

2. Interest calculation

a. Hourly interest = loan amount × hourly interest rate

b. Cumulative interest calculation

- The sum of the accumulated hourly interest values every hour during the loan period

- Interest is calculated every hour, and less than 1 hour is calculated as 1 hour. Hourly interest is accumulated at the beginning of each hour.

For example, the loan order is created at 17:30. The interest rate from 17:30:00 to 17:59:59 is calculated based on the daily interest rate at 17:30. Subsequently, the interest rate from 18:00:00 to 18:59:59 is calculated based on the daily interest rate at 18:00.

Step 2: To view past orders, click on History at the top of the Loan page .

Step 3: For detailed loan information, navigate back to the Loan page and click on Crypto loan data. This section provides insights into available loan currencies, collateral currencies, and interest rates history.

3. Repayment Made Simple

Go back to the Ongoing loans page, click Repayment, enter the amount you want to repay, and click Confirm to complete the transaction.

Repayment Guidelines:

Interest is repaid first, followed by the principal. Accrued interest will increase the loan’s collateral ratio.

Partial Repayment:

- You can make partial repayments.

- After a partial repayment, the collateral ratio and total debt are recalculated, and the remaining loan continues to accrue interest.

Supported Repayment Methods:

1. Standard Repayment: Use the available balance of the borrowed currency in your spot account to repay.

Repayment Limits:

- Minimum Repayment Amount: At least 5 USDT.

- Maximum Repayment Amount: The lesser of your available balance or total debt.

2. Collateral Repayment: Use your collateral to repay by converting it into the borrowed currency.

Default Conversion: Utilizes the flash exchange feature for conversion.

Repayment Limits:

- Minimum Repayment Amount: At least 10 USDT.

- Maximum Repayment Amount: The lesser of the remaining collateral or total debt.

4. Adjusting Your Collateral Ratio (LTV)

To adjust your collateral ratio, go to the Ongoing loans page and click Adjust LTV.

Enter the amount of cryptocurrency to add as collateral. You'll see the estimated new LTV ratio. Click Confirm to finalize the change.

Important Notes on LTV Adjustment:

Regarding Adding Collateral:

- Adding collateral to an order can reduce the loan’s collateral ratio.

- It is sourced from your available spot account balance.

- The adjustment must be greater than 5 USDT.

Regarding Withdrawing Collateral:

- If the order’s collateral ratio is below the initial ratio, you can withdraw the excess collateral, which will increase the loan’s collateral ratio.

- After withdrawal, the collateral ratio should remain below the initial collateral ratio.

- The adjustment must be greater than 5 USDT.

Evaluating Risk for Loan Orders

1. Collateral Ratio (LTV):

a. Collateral Ratio (LTV) = Total loan value ÷ Total collateral value

b. The system updates the collateral ratio for all active loan orders every second, comparing the current ratio with the margin call and liquidation levels.

- When the collateral ratio reaches the margin call level, the system will notify you to add more collateral.

- If the collateral ratio hits the liquidation level, the loan order will be liquidated, and you’ll be notified.

2. Initial LTV: This determines the maximum loan amount you can borrow based on your collateral.

3. Margin call ratio: When your collateral ratio reaches this level, your loan order is at high risk, and you’ll be prompted to add more collateral.

4. Liquidation LTV: When your collateral ratio hits this level, your collateral will be liquidated, and you’ll be notified as the system closes your position.

In summary, Bitget's Flexible Loans provide a powerful and versatile tool for crypto enthusiasts to enhance their investment strategies without compromising liquidity. With features like flexible repayment options, dynamic interest rates, and the ability to generate income from collateral, it is tailored to meet the evolving needs of modern investors. Whether you're looking to unlock the potential of your assets or navigate the ever-changing crypto market with confidence, Bitget's Flexible Loans offer a seamless and efficient solution to achieve your financial goals.