1、An introduction of “Pledge and Borrow”
2、Applications of "Pledge and Borrow”
A is a blockchain project runner desperately in need of cash to support the running of the project. A doesn't want to sell ETH raised from investors. So, A can pledge the ETH and borrow USDT in HyperPay wallet.
B is a Bitcoin miner. During the bear market, B deposits the Bitcoin in HyperPay Wallet, and borrows USDT for monthly utility. So, his Bitcoin can be sold at a better price.
C is a block player. When ETH price plunges, C quickly borrow USDT in HyperPay Wallet and convert to ETH in the instant exchange. He converted ETH back to USDT when the market reversed and successfully made a profit.
3、Why should you choose HyperPay Wallet?
- Instant borrow and lend: our matching engine is so advanced that you can quickly borrow and lend.
- High-efficient service: Simple procedures, Transparent charge
- Multiple currencies to pledge: Main currencies are supported, including BTC, ETH, EOS.
- Safe and secure: we have multiple measures to safeguard your assets.
- Price warning system: we will warn you when the price is fluctuating, so you can take actions to avoid forced liquidation.
0.1% of the initial loan amount will be charged as overdue fee and be charged daily. If the repayment is not made within 7 days or collateral value is not enough for a full repayment, the loan will be forced into liquidation. Forced liquidation does not affect other assets that are not pledged as collateral.
What is risk ratio?
Risk Ratio equals collateral market value /(borrowing asset value + accrued interests), please note that the account might be forced liquidation due to price fluctuations of the mortgaged assets.
What is liquidation fee?
After liquidate the position, 3% of the remaining amount after the repayment (principal, interest and liquidated damages) will be charged as the liquidation fee.