Spot trading

Introduction to Institutional Loans

2024-11-01 08:0011927

Institutional Loans are designed to provide competitive loan services to institutional users.

Key advantages

Collateral assets are locked in the Risk Unit (RU) spot sub-accounts.
Collateral assets can be traded in spot markets as long as the risk ratio (Loan-to-value, LTV) meets the requirements.
Supporting various collateral asset types.
Offering competitive interest rates and borrowing amounts.

Product specifications

Two Institutional Loan products are currently available for institutional users: Institutional Loans with 3x leverage for spot;

and Institutional Loans with 5x leverage for spot.How Institutional Loans with 5x leverage works:

Product name	Institutional Loans with 5x leverage for spot
Customers	Institutional users
Borrowable assets	USDT
Loan leverage	5x
Supported accounts	Only transfers between spot sub-accounts in the Risk Unit are supported.
Collateral assets	Supports margin assets as collateral for spot sub-accounts Allows independent configuration of spot margin coin, including haircut and maximum collateral value (in USDT). Note: When converting your assets into non-margin assets or margin assets with a lower haircut, you may experience immediate liquidation upon order placement if the LTV exceeds the liquidation ratio. It is crucial to manage your risk to prevent such occurrences.
Spot trading pair	Can be configured independently
Loan term	1–12 months
Application rules	Contact an institutional BD to apply
Interest calculation	Interest is calculated daily and paid monthly based on the user's performance in related promotions. Daily interest accrued = outstanding loan principal x daily interest rate
Lending account	Dedicated spot sub-account in the Risk Unit
Repayment rules	Repayment date: The repayment date is mutually agreed upon offline and documented in the contract. Repayment scenarios: Scheduled repayment (repay on the agreed-upon due date): You can choose to repay the loan at the maturity date. Early repayment: You can also choose to repay the loan in advance. Liquidation repayment: if LTV ≥ 90%, the system will trigger liquidation repayment to lower the LTV to about 80% of the liquidation stop level.
Risk management	Risk unit rules A risk unit is a collection of sub-account user IDs bound. In a set of main accounts and sub-accounts, user IDs from different sub-accounts can be assigned to different risk units, but a user ID can only be bound to one risk unit. Each risk unit can be bound with multiple user IDs, but they must come from the same master account and sub-account. Each risk unit must designate a sub-account user ID in the risk unit as an exclusive sub-account for the loan service. The risk unit can unbind its sub-accounts after repaying the loan in full or unbind individual sub-accounts after their asset balance becomes zero. OpenAPI can be used to bind spot sub-account user IDs to risk units. Refer to the Institutional Loan API for more details.
	LTV calculation formula Risk management is based on the loan-to-value ratio (LTV), which is calculated as follows: LTV = remaining borrowed amount ÷ spot sub-account converted assets (RU) Remaining borrowed amount = remaining unpaid principal + remaining unpaid interest Spot sub-account converted assets (RU) = sum (min (Risk Unit spot sub-account margin's coin quantity × index price × haircut, maximum collateral value in USDT))
	LTV trading restrictions ≥ 80% Transfer restriction: The transfer of collateral assets in the spot sub-accounts within the Risk Unit to external accounts is restricted. ≥ 85% Spot buying restricted: Spot buying in the spot sub-accounts within the Risk Unit is restricted. ≥ 90% Spot trading restricted: Spot buying and selling orders in the Risk Unit is restricted.

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Transaction limit

Permissions	Institutional Loans main account	Institutional Loans dedicated sub-account	Institutional Loans sub-account
Spot trading Limit order and market order	Supported	Supported	Supported
Spot copy trading	Supported	Not supported	Not supported
Spot trading Trigger OCO TP/SL Trailing stop Iceberg Spot bot trading Spot grid Spot Martingale Spot auto-invest Spot CTA Spot Smart Portfolio Spot position grid	Supported	Not supported	Not supported
Convert	Supported	Not supported	Not supported

Supported collateral assets

Coins	Collateral ratio	Maximum collateral value (USDT)
USDT	100%	10,000,000
BTC, ETH, USDC & USDE	95%	5,000,000
LTC, XRP, SOL, DOGE, ADA, AVAX, NEAR, SUI, STRK & XAI	85%	3,000,000
STETH, JTO & ARKM	85%	2,000,000
MATIC, BCH, SHIB, ARB, GALA, ETC, WLD, SEI & ENA	75%	2,000,000
AGIX, FIL, DOT, LINK, APT, EOS, OP, TRX, PEPE, BLUR, CFX, CHZ, DYDX, FTM, MASK, NEO, TIA, XLM, YGG, FET, RNDR, BNB, WIF, RUNE & TON	65%	1,000,000
ATOM, APE, CRV, CORE, FLOW, GMT, GRT, ICP, LDO, MKR, PEOPLE, PYTH, SAND, STX, SUSHI, TRB, 1INCH, BICO, CELO, ENS, FLOKI, FRONT, INJ, LQTY, QTUM, RAY, RON, SSV, XTZ, UNI, BGB, MAGIC, MANA, ONDO, JASMY, WAVES, STG, HFT & HBAR	55%	1,000,000
LRC	55%	500,000
ZRO, ZK, TNSR, SAFE, POL, CATI, BLAST & ALT	55%	300,000

Spot trading pairs supported

All collateralized assets coin/USDT

FAQ

1. How can I apply for an Institutional Loan?

Please contact your account manager or send an email request with the subject "VIP Institutional Loan Application". Our team will get back to you promptly.

2. What are the requirements for Institutional Loans?

Institutional users must complete KYB verification and hold collateral worth at least 200,000 USDT.

3. How is the loan settled after approval?

Loan settlement usually occurs immediately after the application is approved. For spot Institutional Loans, the borrowed amount will be credited to the dedicated spot sub-account.

4. Are there any fees involved for Institutional Loans?

No transaction fees is required for Institutional Loans. However, interest is charged, and Bitget takes a 2% fee as a risk reserve for liquidation repayment.

5. What is the loan-to-value ratio (LTV) for Institutional Loans?

The loan-to-value ratio (LTV) helps the platform calculate the loan amount you will receive based on your existing collateral assets. The calculation formula is as follows: LTV = remaining borrowed amount ÷ Risk Unit spot sub-account assets (in USDT)

You can manage your LTV ratio by transferring assets to/from your spot sub-account Risk Unit.

You can query the LTV ratio through OpenAPI. Refer to: Get LTV

6. Introduction to risk management rules

For Institutional Loans with 5x leverage (Spot), the risk restrictions are as follows:

LTV ratio = remaining borrowed amount ÷ Risk Unit spot sub-account assets (in USDT)
Remaining borrowed amount = remaining unpaid principal + remaining unpaid interest
Risk Unit spot sub-account assets (in USDT) = sum (min (Risk Unit spot sub-account margin's coin quantity × index price × haircut, maximum collateral value in USDT))
The lower the LTV, the safer the collateral assets and the lower the risk of liquidation.
LTV ≥ 80%
- Transfer restriction: It is prohibited to transfer collateral assets in the spot sub-account within the Risk Unit to external accounts.
LTV ≥ 85%
- Restricted spot buying: Spot buying within the Risk Unit is restricted.
LTV ≥ 90%
- Restricted spot trading: Spot buying and selling orders in the Risk Unit are restricted.
- Institutional Loan liquidation repayment will be triggered.

7. What is the liquidation repayment process?

For Institutional Loans with 5x leverage (Spot), the liquidation repayment process is as follows:

i) Canceling open orders: Any open spot orders within the Risk Unit are canceled.

ii) No-loss payment: If the available USDT in the Risk Unit is sufficient for repayment, the system will transfer the amount to the dedicated spot sub-account to reduce the LTV from 90% to approximately 80%.

Otherwise, the following steps will be taken:

iii) Loss repayment

Select an account
- Select accounts within the Risk Unit that need to be liquidated to reduce LTV to around 80%.
- The system calculates the coins and quantity that each sub-account in the Risk Unit should repay based on the repayment amount.
  - The selection process will prioritize accounts based on the total equity amount from highest to lowest.
  - All repayment assets will be transferred to the dedicated sub-spot account.
Convert to repay
- The system will automatically convert the margin assets in the dedicated spot sub-account into borrowed coin for repayment, reducing LTV to around 80% and completing the liquidation.
- If the LTV ratio remains at or above 85%, the system will take control of all assets across the user's accounts to repay the liabilities.

Liquidation settlement:

A settlement fee will be collected by the Loans Insurance Funds using the following formula: Liquidation fee = liquidation repayment amount × 2%. Please monitor your risk level closely to avoid liquidation.

8. Can I use borrowed USDT for futures trading?

This is not supported currently. The LTV will increase after transferring assets from the Risk Unit to futures accounts.

9. Can I query Institutional Loans through API?

Yes, you can query Institutional Loans via API. For more information, you can refer to Institutional Loans API.

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