Interest-free Loan is a crypto loan service newly launched by DigiFinex. You can place your digital assets as collateral to borrow different tokens so as to gain short term liquidity. Repayment should be done at maturity to redeem collateral digital assets.
1、How to borrow
It only takes collateral assets to borrow with no eligibility review and instant loan arrival.
2、Collateral token, borrowed token and collateral rate
Currently, DigiFinex only accept Interest-free Loan of pledging BTC to borrow USDT.
DigiFinex has set a fixed collateral rate which is subject to the current loan page.
Collateral rate: if collateral rate is 65%, that means you can borrow USDT worth of 0.65 BTC by pledging 1 BTC.
Entry price: referring to the latest BTC price at entry. If BTC price at maturity is higher than entry price, 20% of the difference will be charged as loan fee.
Protection price: Users don’t have to repay the loan if BTC price drops below the protection price at maturity.
b.One of the following scenarios may occur at maturity according to the settlement prices:
Protection price < BTC price < Entry price, you can repay your capital and take your collateral assets.
BTC price < Protection price, you don’t need to repay and you can not redeem your collateral assets.
BTC price > Entry price, you can repay the loan and take your collateral assets. 20% of the difference will be charged as loan fee.
*Liquidation means the termination of your loan. All collateral assets will be settled automatically. Borrowers will lose possession of the collateral and liquidated assets are not recoverable.
*DigiFinex shall not be responsible for the delay of notification due to third-party notification problems, and users shall keep an eye on their positions at any time.
a.If repayment is not made at maturity, a daily penalty interest of 0.5% will be charged, and the liquidation price will rise.
b.A maximum of 15 days overdue is allowed. If repayment is not made in 15 days, DigiFinex will force the liquidation and deduct the collateral without repayment.
c.The overdue repayment rules are in accordance with the normal due payment rules. If during the overdue period, BTC price collapses and triggers the liquidation, then the system will perform forced liquidation, ending the loan order.