Borrowing, interest, and repayment in the unified account
The unified account (UTA) supports borrowing and repayment of assets under specific conditions. This article explains how the system works, including how borrowing is triggered, how interest is calculated, and how repayment is processed.
1. Borrowing
Automatic borrowing is supported in the unified account and will be triggered under specific scenarios.
Interest is charged on the debt amount, which is also factored into the initial and maintenance margin calculations according to the tier system.
Borrowing calculations
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Cross-asset mode
Debt = abs[min(balance + unrealized PnL, 0)]
Loan per order = trading volume – available
Auto-borrow scenarios
In cross-asset mode, when the order size exceeds the available balance, the insufficient amount will be automatically borrowed (in any of the following scenarios). Auto-repay occurs when the user transfers funds to the unified account, settles trades, or makes profits.
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Auto-borrow scenarios
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Example
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Insufficient balance to place or fill a sell order
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Unrealized loss in perpetual futures
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Borrowing for margin trades
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Borrowing limit
A user's maximum loan amount is determined by the smallest value among their available margin in the current account, the leverage tier limit, and the individual limit.
2. Interest
Interest is charged on outstanding debts for each asset. However, no interest is charged on unrealized losses of futures positions within the interest-free amount.
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Interest-free amount = min {abs [min (0, unrealized loss)], interest-free limit}
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Interest-bearing amount = max (0, debt − interest-free amount)
Interest accrual scenarios
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Auto-borrow scenarios
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Interest accrual details
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Insufficient balance to place or fill a sell order
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Transaction fees, funding fees, and realized losses of closed positions are all realized expenses that reduce the account balance. The borrowed amounts for these purposes will accrue interest.
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Unrealized losses in perpetual futures
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Borrowed amounts to cover realized losses of closed positions will accrue interest.
No interest is charged on unrealized losses of futures positions within the interest-free amount.
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Borrowing for margin trades
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Margin trades borrow funds when placing orders, and interest begins to accrue as soon as an order is placed, regardless of whether it is filled. Any borrowed amounts will accrue interest.
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Interest calculation
Interest accrues hourly after borrowing. Interest accrues hourly and is deducted at the start of each hour, which may result in a negative balance. The loan APR in the unified account fluctuates in real-time based on market supply and demand.
Formula: Hourly interest = borrowed amount × hourly interest rate
3. Repayment
Auto-repay
Repayment is made automatically after users transfer funds in the borrowed currency into their unified account, settle trades, or make profits.
Manual repay
The unified account allows Quick repayment. On the asset list section of the unified account trading page on our website, you can find the Quick repayment button. Use it to select coins and repay manually.
4.Loan data and interest records
Live loan data
There are two ways to view the loan data on our website:
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Trading records: Navigate to Unified account history > Loan data to view the total debt, time until the next interest charge, outstanding debt for each asset, interest-free limits, and the hourly interest rate for the next hour.
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In the Assets tab, you will find the debt of each asset.
Interest records
Navigate to Unified account history > Transaction history. You will see all transactions. Filter by Interest deduction as the transaction type to view all interest payment records.
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