Latest news
Institutional Lending vs Unified Trading Account Manual Borrowing Comparison
2026-07-30 11:431626
Institutional Lending vs Unified Trading Account Manual Borrowing Comparison
|
Feature
|
Dimension
|
||
|
Participation conditions
|
Eligibility
|
All users (including VIP and PRO)
|
|
|
Supported accounts
|
|
|
|
|
Borrowing rules
|
Interest rate
|
Fixed interest rate (1 - 12 months) / 2.8 USDT%
|
Fixed interest rate (1 - 12 months) / USDT 2.8%
|
|
Interest calculation method
|
On-demand: interest accrued hourly
|
Interest accrued daily, settled monthly
Daily accrued interest = Outstanding principal × Daily interest rate
|
|
|
Borrowing currency
|
Supports 400+ crypto, supports rToken
|
USDT
|
|
|
Borrowing limit
|
USDT tens of millions
|
USDT tens of millions
|
|
|
Collateral currency
|
Supports more cryptocurrencies as collateral & 100+ rToken
|
Cryptocurrencies only
|
|
|
Borrowing leverage
|
Mainstream coins 10x
Small-cap coins 3-5x
|
5x
|
|
|
Loan disbursement account
|
Balance within the unified trading account. Borrowing 1M USDT adds the following to the unified trading account:
1M USDT equity
-1M USDGO liability
Note:
*USDGO : USDT = 1:1, applies only to the borrowing sub-account for manual borrowing
*Loans can be disbursed separately to individual sub-accounts
*Sub-accounts with manual borrowing cannot hold additional USDGO
|
Under the unified trading account, borrowing 1M USDT via the dedicated institutional lending sub-account within the risk unit adds the following to the risk sub-unit:
1M USDT equity
-1M USDT liability
|
|
|
Repayment rules
|
Repay anytime, interest is calculated based on actual usage time
|
Loan repayment date:
Repayment scenarios:
|
|
|
Interest repayment rules
|
Automatically charged hourly
|
Interest is automatically collected by the system on the 1st of each month.
Please deposit the corresponding interest into the dedicated risk unit sub-account before the 1st of each month to prevent the LTV from rising after automatic interest deduction
|
|
|
Risk control rules
|
Core risk control metrics
|
Cross margin ratio (Margin Ratio)
|
Loan-to-value ratio (LTV)
|
|
MMR (Maintenance Margin Requirement)
|
Dynamic MMR: typically 2% - 5% (depending on the coin and position size).
Note: MMR is the liquidation trigger threshold, not the account's current ratio.
|
Fixed liquidation LTV: typically 90%.
Note: Institutional lending does not track MMR%, but instead monitors whether LTV reaches 90%.
LTV calculation formula
|
|
|
Liquidation price level (Price Level)
|
Relatively far. Triggered when the account's net value falls to near the total liabilities.
For example, if the collateral is BTC, liquidation is triggered when the price drops by approximately 45% - 48%.
|
Relatively close but controllable. Triggered when LTV rises to 90%.
For example, if the collateral is BTC, liquidation is triggered when the price drops by approximately 40% - 42%.
(Because the collateral discount rate for institutional lending is typically lower, resulting in a smaller denominator, LTV rises faster)
|
|
|
Effective margin (Eff. Margin)
|
High availability. All assets are converted at the discount rate, minus margin used. Available assets = sum (Asset * Price * Haircut) - Margin used
|
Risk unit isolation. Only assets bound within the risk unit are calculated.
Formula: sum (Unit Asset * Price * Haircut)
|
|
|
Liquidation buffer
|
Small. Once MMR is reached, the system immediately executes liquidation at market price, which may result in slippage losses.
|
Large. Once LTV reaches 90%, the system first attempts "lossless repayment" (transferring available assets) before forcing position reduction.
|
|
|
Liquidation process
|
Pre-deleveraging (pre-liquidation) verification
Under Pro mode, the forced deleveraging process is triggered when the account margin ratio reaches a specific threshold.
• Users should take timely action to reduce risk. (Bitget reserves the right to adjust this parameter as needed.)
• Cancel related open orders.
• If the margin ratio remains ≥ 100% after order cancellation, the account will trigger forced deleveraging.
Forced deleveraging (forced liquidation)
• Forced deleveraging is divided into three stages.
• At each stage, positions are transferred to the liquidation engine for processing based on the current mark price.
• The system will charge maintenance margin based on the amount reduced, to cover potential slippage risk. Any remaining funds will be transferred entirely to Bitget's insurance fund.
Stage 1: Two-way position reduction
• In open/close position mode, reduce long and short positions in opposite directions under the same contract.
Stage 2: Collateral conversion
If all positions in Stage 1 have been closed but the account is still unsafe:
• The system will convert high-discount-rate assets (assets with high margin contribution) into liability assets. This both increases effective margin and repays liabilities, releasing margin that was already in use.
Stage 3: Non-two-way position reduction
If all operations in Stage 2 still fail to restore account safety:
• The system will reduce the remaining non-two-way positions, prioritizing the positions with the greatest risk-reducing effect.
• Each reduction lowers the risk level by one tier, until the account returns to a safe state.
If all futures positions have been reduced to the lowest tier and the account still cannot be restored:
• Bitget will take over the user's account and remaining assets.
• If liquidation results in a negative balance on the account, the insurance fund will be used to cover the shortfall, and the system will generate a liquidation compensation record on the user's account.
|
Liquidation handling (new process )
When the risk ratio reaches or exceeds 90%, the liquidation repayment process is as follows:
Otherwise, the following measures will be taken:
|
|
|
Trading restrictions
|
No special restrictions; subject to the cross margin ratio
|
LTV trading restriction description
|
|
Example
Assume the customer's principal is BTC equivalent to 1M USDT, and applies to borrow 1M USDT
|
Product
|
||
|
Loan disbursement account
|
Balance within the unified trading account
|
Risk sub-unit
|
|
Account changes after loan disbursement
|
Account changes:
*Loans can be disbursed separately to individual sub-accounts
*Sub-accounts with manual borrowing cannot hold additional USDGO
|
*Loans are disbursed only to the risk sub-unit
|
|
MMR/LTV changes after loan disbursement
|
|
|
|
Liquidation process
|
When the cross margin ratio ≥ 100%, the system will initiate pre-deleveraging order cancellation according to the following rules; if the margin ratio remains ≥ 100% after order cancellation, the account will trigger forced deleveraging.
|
When the risk ratio reaches or exceeds 90%, the liquidation repayment process is as follows:
|
Join Bitget, the world's largest Universal Exchange (UEX)
Share
