Gate Crypto Loan now offers two types of crypto loan: multi-collateral loan and single-collateral loan. Compared with traditional single-collateral loans, Gate Multi-Collateral Loan has the following features:
- Enhanced capital efficiency
- Lower management cost
- Friendly liquidation mechanism
In terms of capital efficiency, for multi-collateral loans, you can collateralize all your idle coins in one order and borrow funds again for the same order, which will greatly enhance your capital efficiency.
In terms of lower management cost, as you can both collateralize and borrow multiple coins in one order, the amount of orders is reduced, as well as your management cost.
In terms of friendly liquidation mechanism, for multi-currency loans, we adopt the tiered liquidation mechanism similar to that of "Spot Margin Trading", your collateral will be well-protected, ensuring a better borrowing experience.
FAQ
1. How to calculate the collateral value in one order of multi-collateral loans?
Different from single-collateral loans, the collateral value in multi-collateral loans is called Total Collateral. Total Collateral = ∑(Collateral Amount × Collateral Index Price × Discount Rate of the Collateral) You can refer to the discount rate list on the Coin Borrowing Info page. The collateral value of GTETH, GTSOL, GT2, and GTBTC will be calculated according to the discount rate of their original currency. For example, if a user holds 2 GTBTC, their net assets will be equal to 2 BTC, and the collateral value will be calculated based on BTC's discount rate. https://www.gate.com/loan-info
2. How to calculate the Max Borrowable of multi-collateral loans?
For multi-collateral loans, Max Borrowable = (Collateral Value x 70% - Loan Value) / Index Price of Borrowed Coin = [ ∑(Collateral Amount x Collateral Index Price x Margin Adjustment Factor of the Collateral) x 70% - ∑(Outstanding Loan Amount x Index Price of Borrowed Coin)] / Index Price of Borrowed Coin
In this formula, 70% refers to the initial LTV for the order, which means that your LTV should not exceed 70% if you are to borrow funds.
3. How to calculate the LTV of multi-collateral loans?
For multi-collateral loans, LTV = Loan Value / Collateral Value x 100% = ∑(Outstanding Loan Amount x Index Price of Borrowed Coin) / ∑(Collateral Amount x Collateral Index Price x Margin Adjustment Factor of the Collateral) x 100%
4. What are the initial LTV, alert LTV and liquidation LTV of multi-collateral loans?
It is the same as those of single-collateral loans.
Initial LTV - 70% Alert LTV - 80% Liquidation LTV - 90%
5. What is your collateralizable quota for each coin offered by the platform?
It is the same as that of Single-Collateral Loans. Max Collateralizable = min{Spot Transferrable, Remaining Collateralizable Quota} Remaining Collateralizable Quota = Collateralizable Quota - Collateralized Amount
6. What is your borrowable quota for each coin offered by the platform?
It is the same as that of Single-Collateral Loans. Max Borrowable = min{Pool Available, Remaining Borrowable Quota} Remaining Borrowable Quota = Borrowable Quota - Borrowed Amount
7. How can I borrow again for the same order?
When the LTV is below 70%, it means you still have collateral available. In this case, you can borrow more coins by clicking Borrow Again on the borrowing page of your order in My Loans until the your LTV reaches 70%. Of course, you can also add other collateral to borrow more.
8. What will happen after your LTV hits liquidation LTV?
When your LTV reaches 90%, the system will start to liquidate with the tiered liquidation mechanism. This mechanism will not sell your collateral at at once in liquidation. Instead, it will liquidate in the descending order of the value of outstanding loan (principal plus interest). The loan with the largest value will be dealt with first. The order of selling different collateral is similar. The collateral with the largest value will be sold first. The platform will check the LTV after selling to see if the LTV is back within the liquidation LTV. If yes, liquidation will stop; if not, liquidation will go on.
9. When an alert is triggered or an order is being liquidated, will I receive a notification?
Yes. When an alert is triggered or your order is being liquidated, you will receive a direct message and a notification email.
Gate reserves the final right to interpret the product.
