Spot margin trading: How are interest and debt calculated?

1. How is debt calculated in margin trading?

Total debt = funds borrowed for margin trading + interest incurred on the borrowed funds Bitget spot margin trading accrues interest on an hourly basis, and the interest rate may differ from coin to coin.

2. Does Bitget spot margin trading implement a fixed or a variable rate?

Bitget spot margin trading implements a variable interest rate that fluctuates depending on the market, risks, and other factors.

3. Where can I view the current interest rate for Bitget spot margin trading?

You can find the daily and annualized interest rates for your target coins on the margin trading page. Hourly rate = daily rate ÷ 24. https://www.bitget.com/margininfo

For example, if you trade BTCUSDT">BTC/USDT in isolated margin mode, the daily interest rate for BTC is 0.007%, and for USDT is 0.0126279%.

3. How is interest calculated?

Interest = loan × (daily interest rate ÷ 24) × hours in the term

If you borrow assets for less than one hour, it will be rounded to one hour in interest calculation.

Let's suppose that the daily interest rate of USDT is 0.0126279%. If a user borrows 10,000 USDT at 00:10 AM, and repays it at 2:30 AM, the interest generated during the term is 10,000 USDT × (0.0126279% ÷ 24) × 3 = 0.15784875 USDT. Therefore, the user is required to repay a total of 10,000.15784875 USDT.

Note: The period 00:10-2:30 is counted as 3 hours.

4. Where can I view my loans and interest?

Method 1: You can view the loan amount and corresponding interest for the selected coin by accessing the Assets tab on the trading page.

Method 2: You can view the loan and interest amount in the corresponding trading pair account under your margin trading account.

5. How is interest paid?

The interest will be paid at the time of loan repayment. In margin trading, your asset will be used to pay the interest before repaying the borrowed funds.

FAQ

1. Will the variable interest rate affect loans that have already been borrowed?

Yes, in Bitget's spot margin trading, interest accrues on an hourly basis. If the interest rate changes, the new rate will be applied for interest calculations starting from the beginning of the next hour.

Let's assume that a user borrows 1 BTC at 1:30 AM at an interest rate of 0.1%. The BTC daily interest rate changes to 0.05% at 3:40 AM and the user repays the loan at 4:50 AM. The interest is calculated as follows:

The period from 1:30 to 3:59 AM is counted as three hours and calculated at a daily interest rate of 0.1%. Interest = 1 BTC × (0.1% ÷ 24) × 3 = 0.000125 BTC.

The period from 4:00 to 4:50 AM is counted as one hour and calculated at a daily rate of 0.05%. Interest = 1 BTC × (0.05% ÷ 24) × 1 = 0.00002083 BTC.

So the total interest from 1:30 to 4:50 AM is 0.000125 BTC + 0.00002083 BTC = 0.00014583 BTC. The user needs to repay a total of 1.00014583 BTC.

2. Does the accrued interest affect my risk ratio?

Yes, since interest is a part of the debt, it is strongly recommended that users diligently monitor their risk ratio and repay their debts in a timely manner to avoid accrued interest affecting the risk ratio of their accounts.

3. How can I maintain a low-interest rate in margin trading?

Bitget spot margin trading periodically distributes spot margin trading cut-rate coupons to random users. You can follow the updates on our website for the latest promotions. Cut-rate coupons allow you to borrow funds at lower interest rates or even at zero interest. You can visit the Coupons Center to access spot margin trading cut-rate coupons.

4. Can I still transfer out assets from my account after borrowing funds in margin trading?

If Bitget imposes restrictions on the transfer of a given coin due to risk control reasons, users holding those coins will not be able to transfer them out.

If there are no restrictions, you can transfer a portion of the assets in your account, excluding the borrowed amount. The details are as follows:

When your net assets (total assets – total debt) exceed the total debt, you can transfer out funds. The maximum transferable amount is equal to the net assets minus the total debt (calculated in USDT).

For instance, if a user holds 1000 USDT in their BTC/USDT isolated margin account, with a net asset of 700 USDT and 300 USDT in debt, the maximum transferable amount would be 700 - 300 = 400 USDT.

Note: Market close only involves the asset of the position. A market order of the position's full amount is placed in the opposite direction. Closing a long position will sell all assets in the position. Closing a short position means buying the shorted coin with asset of the position.