Cryptocurrency investors often face a dilemma: needing short-term liquidity without wanting to sell assets they believe will appreciate. The pledge-to-borrow service offers a smart, flexible solution—allowing users to use their digital assets as collateral to secure loans, maintaining long-term investment positions while accessing immediate funds. This guide walks you through the full process of borrowing, managing, and repaying crypto-backed loans, covering both floating-rate and fixed-rate options with competitive interest terms.
Whether you're looking to cover expenses, leverage trading opportunities, or simply manage cash flow, understanding the mechanics of crypto-backed lending is essential. Let’s dive into the step-by-step workflow, key features, risk management strategies, and best practices.
How to Place a Loan Order
To begin using the pledge-to-borrow service, follow these steps within the platform:
- Log in to your account and navigate to More → Finance → Pledge-to-Borrow.
- Explore available products under the All, Floating, and Fixed tabs to compare rates and terms.
🔹 Floating-Rate Borrowing
Under the Floating tab, view a list of supported assets and their current annual interest rates. Select or search for the cryptocurrency you wish to borrow.
Fill in the following details:
- Loan Amount: Enter the desired amount. Click Max to automatically calculate the highest possible loan based on your collateral value and asset-specific borrowing limits.
- Collateral Asset & Amount: Choose from eligible assets in your funding account.
Once submitted, the system automatically calculates and displays your Loan-to-Value (LTV) ratio, hourly/annual interest rate, and estimated daily interest cost.
👉 Discover how to maximize your borrowing power with low LTV ratios.
🔹 Fixed-Rate Borrowing
The Fixed tab allows you to lock in predictable interest costs over a set period.
To create a new order:
- Loan Amount: Specify how much you want to borrow.
- Interest Rate: Input your desired rate (subject to market matching).
- Term: Choose a duration between 7 and 180 days.
- Collateral Asset: Select from supported assets in your wallet.
- Auto-Repayment: Enable this feature to allow automatic repayment using funds from your account on the settlement date.
After submission, a confirmation window appears. Review all terms carefully before confirming.
Important Notes:
- Interest is prepaid upon order matching. The net amount (loan minus interest) is credited to your account. Prepaid interest is non-refundable even if you repay early.
- Late payments incur a penalty: 3x the normal hourly rate during the grace period. If unpaid after the grace period, collateral is forcibly liquidated, plus a 2% liquidation fee.
- A single loan may match multiple deposit orders, leading to multiple settlement dates.
- LTV is calculated under a cross-margin model. Initial LTV is capped at 80%, meaning total loan principal and interest must not exceed 80% of your collateral’s USD value.
🔹 Fixed-Rate Lending (For Lenders)
Users can also earn yield by lending their crypto:
- Choose an asset under the Fixed tab.
- Set Deposit Amount, Rate, and Term (7–180 days).
- Confirm the order.
Lender Notes:
- Orders auto-redeem on the settlement date; early withdrawal is not supported.
- If borrowers default, lenders receive principal, accrued interest, and late fees (minus platform fees) within 5 minutes of resolution.
Viewing and Managing Active Orders
Access your loan dashboard via the “…” icon in the top-right corner of the pledge-to-borrow homepage. This leads to your Personal Panel, which organizes information into three sections:
🔹 Floating Loans
Displays all active floating-rate loans, including:
- Borrowed asset and amount
- Current interest rate
- Remaining available borrowing limit
Click Repay directly from this section.
🔹 Fixed Loans & Deposits
Separate tabs for borrowing and lending activities, showing:
- Average interest rate
- Settlement date
- Asset details
🔹 Collateral Assets
Lists all pledged assets with:
- Quantity
- USD valuation
Tap Adjust to modify your collateral allocation.
You can also access detailed records—including repayment history, interest paid, and collateral changes—via the Pledge Orders or Pledge Data pages. Filter by asset type or time range for better tracking.
👉 Learn how real-time LTV monitoring helps avoid liquidation risks.
Repaying Your Loan
Timely repayment protects your collateral and credit standing.
Steps to Repay:
- Go to Personal Panel → select Floating/Fixed → choose the loan → tap Repay.
- Confirm repayment details in the pop-up → click Confirm.
Key Repayment Rules:
- Floating-rate loans support partial repayments; fixed-rate (lend-borrow) loans require full repayment.
- You can repay anytime. Floating-rate interest is charged per hour (minimum 1 hour). Fixed-rate interest is prepaid and non-refundable.
- With Auto-Repayment enabled, the system uses available balance on settlement day. Ensure sufficient funds to prevent failure and penalties.
Adjusting Collateral Assets
Managing your LTV ratio is crucial for avoiding liquidation.
To Adjust Collateral:
- In Personal Panel, go to Collateral Assets → click Adjust.
Choose:
- Add Collateral: Increase security and lower LTV. Use Max to apply full available balance.
- Reduce Collateral: Only allowed if current LTV is below initial 80%. The system shows “Maximum Reducible Amount” — the most you can withdraw without triggering margin issues.
- Confirm changes.
This dynamic adjustment gives users control during market volatility.
Managing Legacy Loan Orders
Users with active loans created before the new system launch can still manage them via the Pledge-to-Borrow (Legacy) section. These orders:
- Follow original LTV rules
- Are excluded from new-system calculations
- Support repayment and collateral adjustments
However, all new loans must be initiated through the updated interface.
Frequently Asked Questions (FAQ)
Q: What happens if my LTV exceeds 80%?
A: If your LTV rises above the threshold due to price drops, you risk forced liquidation. Adding more collateral or repaying part of the loan reduces this risk.
Q: Can I repay a fixed-rate loan early?
A: Yes, but prepaid interest is not refunded. Early repayment stops further charges but doesn’t recover already deducted interest.
Q: How is interest calculated for floating-rate loans?
A: Interest accrues hourly based on actual usage. Any partial hour counts as a full hour.
Q: What assets can I use as collateral?
A: Supported assets vary by platform but typically include major cryptocurrencies like BTC, ETH, and stablecoins. Check eligibility in-app.
Q: Is auto-repayment safe?
A: It’s convenient for avoiding late fees, but ensure your account has enough funds on settlement day. Otherwise, repayment fails and penalties apply.
Q: Do I earn interest when I lend crypto?
A: Yes—by placing fixed-term deposits, you earn predetermined yields plus potential late fees if borrowers delay repayment.
Core Keywords
crypto lending, pledge-to-borrow, collateralized loan, floating interest rate, fixed interest rate, LTV ratio, crypto loan repayment, decentralized finance (DeFi)
👉 Start borrowing today with competitive rates and flexible terms.