Introduction to Institutional Loans

• Collateral assets are locked in the Risk Unit (RU) spot sub-accounts.
• Collateral assets can be traded in spot markets as long as the risk ratio (Loan-to-value, LTV) meets the requirements.
• Supporting various collateral asset types.
• Offering competitive interest rates and borrowing amounts.

Spot trading pairs supported

• All collateralized assets coin/USDT

FAQ

1. How can I apply for an Institutional Loan?

Please contact your account manager or send an email request with the subject "VIP Institutional Loan Application". Our team will get back to you promptly.

1. What are the requirements for Institutional Loans?

Institutional users must complete KYB verification and hold collateral worth at least 200,000 USDT.

1. How is the loan settled after approval?

Loan settlement usually occurs immediately after the application is approved. For spot Institutional Loans, the borrowed amount will be credited to the dedicated spot sub-account.

1. Are there any fees involved for Institutional Loans?

No transaction fees is required for Institutional Loans. However, interest is charged, and Bitget takes a 2% fee as a risk reserve for liquidation repayment.

1. What is the loan-to-value ratio (LTV) for Institutional Loans?

The loan-to-value ratio (LTV) helps the platform calculate the loan amount you will receive based on your existing collateral assets. The calculation formula is as follows: LTV = remaining borrowed amount ÷ Risk Unit spot sub-account assets (in USDT)

You can manage your LTV ratio by transferring assets to/from your spot sub-account Risk Unit.

You can query the LTV ratio through OpenAPI. Refer to: Get LTV

1. Introduction to risk management rules

For Institutional Loans with 5x leverage (Spot), the risk restrictions are as follows:

• LTV ratio = remaining borrowed amount ÷ Risk Unit spot sub-account assets (in USDT)

• Remaining borrowed amount = remaining unpaid principal + remaining unpaid interest

• Risk Unit spot sub-account assets (in USDT) = sum (min (Risk Unit spot sub-account margin's coin quantity × index price × haircut, maximum collateral value in USDT))

• The lower the LTV, the safer the collateral assets and the lower the risk of liquidation.

• LTV ≥ 80%

  • Transfer restriction: It is prohibited to transfer collateral assets in the spot sub-account within the Risk Unit to external accounts.

• LTV ≥ 85%

  • Restricted spot buying: Spot buying within the Risk Unit is restricted.

• LTV ≥ 90%

  • Restricted spot trading: Spot buying and selling orders in the Risk Unit are restricted.

  • Institutional Loan liquidation repayment will be triggered.

1. What is the liquidation repayment process?

For Institutional Loans with 5x leverage (Spot), the liquidation repayment process is as follows:

i) Canceling open orders: Any open spot orders within the Risk Unit are canceled.

ii) No-loss payment: If the available USDT in the Risk Unit is sufficient for repayment, the system will transfer the amount to the dedicated spot sub-account to reduce the LTV from 90% to approximately 80%.

Otherwise, the following steps will be taken:

iii) Loss repayment

• Select an account

  • Select accounts within the Risk Unit that need to be liquidated to reduce LTV to around 80%.

  • The system calculates the coins and quantity that each sub-account in the Risk Unit should repay based on the repayment amount.

    • The selection process will prioritize accounts based on the total equity amount from highest to lowest.

    • All repayment assets will be transferred to the dedicated sub-spot account.

• Convert to repay

  • The system will automatically convert the margin assets in the dedicated spot sub-account into borrowed coin for repayment, reducing LTV to around 80% and completing the liquidation.

  • If the LTV ratio remains at or above 85%, the system will take control of all assets across the user's accounts to repay the liabilities.

Liquidation settlement:

A settlement fee will be collected by the Loans Insurance Funds using the following formula: Liquidation fee = liquidation repayment amount × 2%. Please monitor your risk level closely to avoid liquidation.

1. Can I use borrowed USDT for futures trading?

This is not supported currently. The LTV will increase after transferring assets from the Risk Unit to futures accounts.

1. Can I query Institutional Loans through API?

Yes, you can query Institutional Loans via API. For more information, you can refer to Institutional Loans API.