General Information
What is a Fixed Rate Loan?
Bybit Fixed Rate Loan is a peer-to-peer (P2P) lending service that offers loans with fixed interest rates and terms. Borrowers must pledge collateral worth more than the value of the crypto assets they borrow from the Suppliers. Borrowers can choose from a variety of supported tokens as collateral and customize the loan’s interest rate and amount to suit their needs.
If you prefer to supply crypto assets instead of borrowing, you can earn a fixed interest rate by lending your crypto assets, including stablecoins, to one or more counterparties on Bybit. You can set your desired return rate and the amount to be loaned. Plus, your loaned assets are principal-protected on Bybit (in token amount).
The platform will match borrow and supply orders of similar rates and terms to facilitate the loan process.
What is the difference between Fixed Rate Loan and Crypto Loans?
|
Fixed Rate Loan |
Crypto Loans |
Loan Supplier |
Supplier |
Platform |
Interest Rate |
Set by the Borrower/Supplier within the platform's specified range. |
Floating interest rate |
Loan Term |
7, 14, 30, 60, 90 or 180 Days |
Flexible |
Loan Repayment |
Auto and Manual Repayment. Early Repayment is accepted but the interest paid is non-refundable. |
Manual Repayment |
Collateral |
Can select multiple assets from the supported token as collateral. |
Only can select one token as the collateral asset |
Loan-to-Value (LTV) ratio |
The LTV is calculated by dividing the total loan amount from all loan orders by the total collateral amount. |
Each Loan order has its respective LTV ratio. |
Liquidation |
If the LTV ratio reaches 92%, your collateral assets will be liquidated to force repay all your loan orders and interest in full. |
If the LTV ratio reaches 95%, your collateral assets will be liquidated to force repay the respective loan orders and interest in full. |
Grace Period |
24 hours
Interest Rate: 3x hourly interest rate applies |
Not applicable to flexible loans. |
What are the requirements for a Fixed Rate Loan?
To borrow or supply on Fixed Rate Loan, you must:
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Complete the standard Identity Verification or Business Verification.
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Have assets in your Funding Account to serve as collateral.
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Meet the minimum borrow or supply order requirement.
Which accounts can be used for Fixed Rate Loan?
You can use your Funding Account for Fixed-Rate Loans. This account functions to deduct collateral, credit borrowed funds, repay debt, and return collateral, giving you flexibility in managing your collateral and borrowed amounts based on your needs.
What can I trade on Bybit using borrowed assets?
There are no restrictions on how borrowed assets can be used. You can trade on the platform or even withdraw them.
Can borrowed assets be withdrawn?
Yes. You can withdraw borrowed assets.
Is Fixed Rate Loan available in Subaccounts?
Yes, Subaccounts support Fixed Rate Loan.
What is the loan term for Fixed Rate Loan?
Fixed Rate Loan currently supports terms ranging from 7 days to 180 days. Borrowers can repay the loan at any time before settlement time.
Borrow and Supply
What are the borrowable and collateral coins for Fixed Rate Loan?
The borrowable and collateral assets include USDT, BTC, ETH, and more. For more details, please refer to the Fixed Rate Loan Data page.
How does order matching work?
The system matches orders every minute, at specific times (e.g., 11:05AM, 11:06AM, and so on). For example, if you place an order at 11:05:30AM and there are available orders in the order book that can match yours, your order will be matched at the next matching time, which is 11:06AM.
If the order book has an order that meets the borrowing conditions or offers better terms, the Borrower will directly complete the transaction at their desired interest rate.
As a supplier, if there’s a borrowing order in the order book that is willing to pay a higher interest rate, the system will prioritize matching the supplier with that order. The Supplier will earn higher interest income based on the Borrower's agreed interest rate, minus a certain percentage deducted as the platform's management fee.
Are there any fees for a fixed rate loan?
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For Borrowers: You will need to pay the interest and any overdue interest. In the event of liquidation and force-repayment triggered, a 2% force repayment fee will apply.
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For Suppliers: You will earn the interest collected from the borrower on the loan settlement date. A 10% management fee will be deducted from your interest earnings and a 30% management fee will be charged on the portion of overdue interest earned.
Where can I view my loan order details?
You can visit the Fixed Loan User Center to view your ongoing or pending loan orders.
When will I get back my principal and interest as a Supplier?
You will receive your principal and interest when the loan duration ends, or when the overdue period concludes. If there is early repayment, your funds will only be returned on the settlement date.
Can I cancel my order?
Yes, you can cancel your order, but only if it remains unfilled. For partially filled orders, you can still cancel the unfilled portion. Once the order is fully filled, it can no longer be canceled.
Can I redeem my funds early as a Supplier?
No, you cannot redeem your funds early unless your order remains unfilled. Once the order is filled, the funds are locked in for the agreed duration.
Will my order be filled by one counterparty or multiple?
Your order may be filled by one or multiple counterparties, depending on the demand and supply in the market. The system will match your order with offers that meet your conditions or provide a better rate.
What happens if my order is filled with multiple counterparties at different times?
If your order is filled with multiple counterparties at different times, each portion of the order will have a separate settlement time, calculated from the order filled time. The overall LTV will be calculated based on the total amounts filled and the total collateral assets. Repayment might occur accordingly depending on the timing and terms of each portion.
Where can I view my collateralized amount?
You can view it in the Fixed Loan User Center. For collateral adjustment history, you can visit the Fixed Loan Order Page.
Can I adjust my collateral after my loan is approved?
You can increase or decrease your collateral amount on the Order page.
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By increasing your collateral amount, you can lower the LTV ratio to reduce your liquidation risk.
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To decrease your collateral amount, you can only reduce your collateral amount if the current LTV ratio is lower than the Initial LTV. The maximum reduction allowed is the amount needed to bring the LTV ratio back to its initial level.
For more details, please refer to How to Get Started With Fixed Rate Loan.
Interest and Repayment
How is the loan interest calculated?
The interest rate for the Fixed Rate Loan is locked in when the Borrower confirms the loan. Interest is charged based on this fixed rate.
The regular interest is charged immediately after the loan order is matched and is deducted from the amount received from the Borrower. Overdue interest is charged separately and will either need to be repaid when repayment is made or be deducted from the collateral when force repayment is triggered.
Formula
Borrower Interest Charged = Borrowed Amount × Annualized Interest Rate) / 365 × Loan Term
Supplier Interest Earned = (Lent Amount × Annualized Interest Rate) / 365 × Lending Period × (1 - Platform Management Fee Percentage)
For more details, please refer to Introduction to Fixed Rate Loan.
How do I repay the principal and interest?
You can enable the Auto-Repay function or manually repay your loan on the Order page. For step-by-step instructions, refer to the guide: How to Get Started With Fixed Rate Loan.
Please note that interest is always repaid first, followed by the principal. If the loan is overdue for 24 hours, you will be required to pay 3x the standard interest rate.
What happens if the loan exceeds the repayment period?
Bybit provides a grace period of 24 hours for overdue loans. During the overdue period, a 3x interest rate will apply. To repay within this period, you must also cover the additional interest accrued.
If the loan remains unpaid beyond the maximum overdue time, Bybit will liquidate your collateral assets to settle the loan and accrued interest in full. A 2% force repayment fee will apply.
Can I repay all or part of my loan in advance?
You can repay your loan at any time; however, only full repayment is allowed—partial repayment is not supported. Please note that any interest already charged will not be refunded.
Can I repay the loan in a coin different from the loan currency?
No, loans must be repaid in the same currency you borrowed them in. For example, if you borrow USDT, repayment must be made in USDT.
Can I use my collateral to repay the loan?
No, collateral cannot be used for manual loan repayment. It will only be returned to your account once the loan is fully repaid. To repay the loan, you must have an available balance of the borrowed coin.
Will the loan automatically be repaid when it is due?
The loans can be automatically repaid upon maturity if the Auto Repay function is enabled. The system will use the assets in your Funding Account to make a full repayment (partial repayments are not supported). If there are insufficient assets in your Funding Account, the system will retry repayment every hour until the repayment is successful or the overdue period ends.
If the retries fail:
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Users must manually repay the loan.
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If repayment is not made within the maximum overdue period of 24 hours, the system will perform a forced repayment by forfeiting the collateral.
Please note: A 2% fee will be charged for forced repayment.
LTV and Liquidation
What is the loan-to-value (LTV) ratio?
The loan-to-value (LTV) ratio refers to the ratio of the value of the loan amount to the value of the collateral provided. The value of the collateral is based on Bybit's last traded price.
What is the initial loan-to-value (LTV) ratio?
Initial LTV (Loan-to-Value) is the ratio of the borrowed amount (plus interest) to the total value of your collateral at the time of borrowing. The initial LTV for the fixed rate loan is 80%. This means you can borrow up to 80% of your collateral's value.
In other words, to borrow the desired amount, you need to provide collateral worth more than the loan amount to ensure borrowing security.
What happens if the loan-to-value (LTV) ratio keeps rising?
If the LTV ratio keeps rising, two things may happen:
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Margin Call: If the LTV exceeds the Margin Call LTV (85%), you’ll receive a notification via email, SMS, and push alert. You will be prompted to either deposit more collateral into your Funding Account or UTA or repay the borrowed coins.
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Liquidation: If the LTV surpasses the Liquidation LTV (92%), Bybit will liquidate your collateral to repay the loan or overdue interest in full.
Note: It's highly recommended to monitor your account regularly, as risk alerts may experience delays or glitches. Bybit is not responsible for any liquidations caused by issues with the alert system.
What happens if liquidation is triggered?
Liquidation is triggered when your Loan-to-Value (LTV) ratio reaches the liquidation threshold. Here's what happens:
1. LTV Monitoring:
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Liquidation is based on the cross-margin mode, where collateral assets are used collectively for all loan orders.
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If the liquidation LTV (92%) is reached, liquidation will be initiated.
2. Loan Order Handling:
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Any unmatched loan orders will be canceled first.
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If the LTV falls below the liquidation LTV after this step, liquidation will stop.
3. Forced Repayment:
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If the LTV does not back to the liquidation LTV or lower, liquidation will continue, and forced repayment will be triggered.
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A 2% force repayment fee will apply, and any remaining collateral assets will be returned to your Funding Account.
To avoid liquidation, monitor your LTV and ensure sufficient collateral is maintained.
How is the LTV ratio calculated?
The Loan-to-Value (LTV) ratio is calculated by dividing the loan value by the collateral value and then multiplying by 100 to get the percentage.
Formula
LTV = (Loan Value/ Collateral Value) × 100
For more information, please refer to Loan-to-Value Ratio and Liquidation (Fixed Rate Loan).