1、An introduction of “Pledge and Borrow”
Pledge and borrow is a service of cryptocurrencies developed by HyperPay Wallet. It’s easy to operate and quick to borrow or lend. Pledge and Borrow can provide new solutions to your asset problems. Borrowers can get the borrowing by pledging your blockchain assets, with a very low interest rate of. We also offers advanced repayment. Supported pledge includes BTC, ETH, EOS, QTUM and HC.
For example: collateral rate for BTC is 70%, you pledge $100,000 currently worth BTC as collateral, you will get 70,000 straight away.
2、Applications of "Pledge and Borrow”
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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.
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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.
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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.
4、FAQ&A
How is the maximum borrowing amount calculated?
Maximum borrowing Amount=Available Amount (mortgaged coin) * Index Price * Collateral Rate
For example: pledge BTC to borrow USDT, current index price of BTC/USDT is 7,000, available BTC is 1, loan mortgage rate is 70%, Max USDT Loan Amount = 1 * 7000 * 70% = 4900
How is interest calculated?
Interest is calculated on the day borrower and lender are matched, and then the interest is calculated at 00:00 (UTC +8) of each natural day. If the loan is less than a day, the interest is calculated as a day.
When repaying in advance, different days of interest penalty will be charged according to different loan period.
What happens if I make a late repayment?
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.
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 manual liquidation?
During the borrowing, borrowers can choose to manually liquidate. When receiving the request, we will liquidate your collateral and repay the borrowing amount and accrued interests. Rest amount will be refunded to your account.
What is the forced liquidation warning?
When the pledged asset price drops rapidly, and your risk ratio (pledged asset value/borrowing asset value) drops to 120%, you will get warning through app notification or SMS. Consider add more pledge after receiving the warning. When the risk ratio drops below 110%, your pledge will be forcibly liquidated.
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.