1.The maximum volume of a margin loan is determined by the leverage ratio. Currently, Gate.io supports leverage ratios from 3 to 10. Say the leverage ratio is 3 and you have 100BTC in your account as margin, the maximum volume of margin loan you can arrange is 200BTC.
Maximum loan volume = (total account balance - borrowed assets - unpaid interest)*(leverage ratio - 1) - borrowed assets
2.Please pay off your loan before or on its repayment day (10 days after receiving the loan). If the loan is still not paid off after its repayment date, Gate.io will take over and host the positions. If necessary, liquidation will be triggered to ensure the repayment.
3.Interest starts to accumulate once the loan has been borrowed. For loans paid off within 4 hours after borrowing, the interest is calculated as 4 hours. After 4 hours, the interest is calculated on an hourly basis. Less than 1 hour will be seen as 1 hour.
Interest calculation formula:
Interest = loan volume * daily interest rate/24 *number of hours
4.When users conduct margin trading, Gate.io offers services which monitor your margin account and manage risks.
5.When the risk rate of your margin account is lower than the threshold, Gate.io will warn you with an email. The threshold of risk rate varies from pair to pair. At present, trades with leverage ratios from 3 to 5 will be warned of risk management when the risk rate goes below 130%. When the leverage ratio is 10, the threshold is 110%.
a: total balance of quote currency b: outstanding interest of quote currency c: last price d: total balance of base currency e: outstanding interest of base currency f: loan volume of quote currency g: loan volume of base currency
6.When the risk rate of your margin account is lower than a certain threshold, liquidation will be triggered and Gate.io will buy or sell your assets at the real-time order price to repay the loan. The risk rate threshold for trades with leverage ratios of 3 to 5 is 110%, for trades with a leverage ratio of 10 is 105%.
7.After forced liquidation is triggered, Gate.io will not repay the loan until it is due. You can still add more margin to keep trading. If the loan is not paid off until the repayment date, the positions will be liquidated to repay the loan.
8.Users should recognize that fees will be generated while trading on margin. Users should agree to pay the fees. The fee rate is the same as it is in spot trading.
9.When your margin trades are making profits, you can withdraw the profit out of the margin account. When there are unpaid margin loans, the maximum amount of assets you can withdraw is:
Maximum withdrawal volume = total balance of the margin account (frozen balance included) - loan volume * leverage ratio/(leverage ratio -1)
10.When you trade on margin, please be aware of the risks of crypto investments and margin trading. Please tread carefully.
11.Borrowers can repay loans in advance but the actual financial management cycle is subject to the agreed repayment date.
12.Users should agree that all investments made on Gate.io represent their true intentions and accept all potential risks and profits brought about by investment decisions.
13.Gate.io does not take responsibility for the potential delays of emails on any third-party software. Please check your account frequently.
14.The right of final interpretation of this document is reserved by Gate.io.
Contact us by submitting a ticket whenever you have questions.