- General
- Borrow/Lend Rules
- Borrow/Lend Interest Rate and Interest Calculation Rules
- RiskRate
- Liquidation Rules
- Risk Control
1. General
1.1 In order to regulate the margin transactions and leveraged borrowing of digital assets, maintain market order, and protect the legitimate rights and interests of investors, these rules have been formulated in accordance with the principles of fairness and openness.
1.2 These rules are an additional term of the Bibox Credit Transaction User Agreement.
1.3 These rules apply to leveraged borrowing, leveraged lending, and fixed margin leveraged trading conducted on this website. If there are no provisions in these rules, the Bibox Credit Transaction User Agreement, the User Use Agreement and other relevant provisions of this website shall apply.
2. Borrow/Lend Rules
2.1 The borrower's loanable amount refers to the maximum loanable amount that can be borrowed by the user according to the maximum leverage multiple supported by the platform's current token pairs and risk control rules. The borrower can borrow assets for up to seven days from the borrowing time at the initial borrowing rate. After the seven days expires, if the borrower has not repaid, the system will automatically renew from the current lending market, and the actual interest rate will be based on the renewed borrowing rate, and so on.
Under these rules, the maximum loanable amount = net assets in a fixed-margin account * (maximum leverage - 1) - borrowed assets - interest.
Example of maximum leverage available: 1 BTC of total assets of the user, 1 BTC of borrowed assets, 0.01 BTC of interest not yet paid, 10 times maximum leverage, then maximum leverage available = (1-0.01) * (10-1) -0.01 = 7.9 BTC.
2.2 Lenders can freely place order after setting the interest rate, and the platform will execute orders from low to high lending interest rate. The maximum loan time cannot exceed seven days, and the specific repayment time within seven days will be determined by the borrower's repayment time. After the borrower repays or loans for seven days, the principal and interest will be automatically returned to the wallet account. During the lending period, if you need to renew the repayment, you can turn on the repayment renewal switch, and the system will automatically re-order the repayment according to the original interest rate. If you do not want to renew the repayment, you can turn off the repayment renewal switch. After the borrower repays or expires, the principal and interest will be automatically returned to the wallet account.
If there are no provisions in these rules, the Bibox Lending Agreement shall apply.
3. Borrow/Lend Interest Rate and Interest Calculation Rules
3.1 The borrowed amount is executed in the borrowable market from low interest rate to high interest rate, and the final interest rate is calculated by weighting the amount of borrowed market orders after the transaction. The interest is simple interest, that is, only the principal is used to calculate the interest. The interest shall be calculated on an hourly basis. If the time is less than one hour, it will be counted as one hour. The principal and interest are returned at the same time when the loan is returned. The borrower does not incur any expenses other than interest.
3.2 The interest rate of lending is shown by the daily interest rate. The lenders can freely choose the interest rate of lending between 0.01% and 0.2%. The interest shall be calculated on an hourly basis. If the time is less than one hour, it will be counted as one hour.
Under these rules, the final interests charged by lenders = daily rate/24 * lending hours * lending amount – lending service fees. The lending service fees is 15% of interest rates.
4. Risk Rate
In order to better avoid risks and protect investors' rights and interests, Bibox.com uses a gradient margin system, and the risk rate is calculated based on the price index.
|
Leverage |
Liquidation Line |
Warning Line |
|
2- 5x |
110% |
115% |
|
6x |
110% |
112% |
|
7x |
108% |
110% |
|
8x |
108% |
110% |
|
9x |
106% |
108% |
|
10x |
106% |
108% |
When the risk rate of the current token reaches the warning line, the system will send you warning information by email and SMS in advance.
When the risk rate of the current token reaches the liquidation line (maintaining trisk rate), the system will close the position according to the liquidation rules.
The current risk rate = (principal + borrowed) / (borrowed + interest rate) * 100%
Price index: Bibox calculates the current price index based on the price information of 5 digital asset trading platforms based on Bibox, Binance, OKEx, Huobi, and Bitfinex.
5. Liquidation Rules
5.1 In order to better protect the rights and interests of investors, when the risk rate of the current token reaches the liquidation line, the system will custody the funds of the currency pair to repay the loan. When the strong margin is triggered, the system will gradient close your position, instead of liquidating the assets. When the current currency pair margin rate hits the warning line, the system will send you early warning information by email and SMS in advance. When the risk rate of the current token reaches the warning line, the system will send you warning information by email and SMS in advance.
5.2 Every loan on Bibox.com must pay a certain percentage of margin. When the market changes adversely, such as when the market reverses and changes in the opposite direction, the total assets of the leveraged account shrink to a certain limit ((principal + borrowed) / (borrowed + interest) ≤ minimum maintenance margin rate), the system will force the user's assets to be sold or bought at the current liquidation price for liquidation loans and handling fees. There is a risk of liquidation failure (the probability of occurrence is extremely small), that is, the forced liquidation is not enough to pay off the loan. At this time, the lender will bear the loss, and the lender can choose to purchase insurance to resist this risk.
5.3 Estimated liquidation price = (borrowed priced token amount * liquidation risk rate – current pricing amount) / (Current trading token amount – borrowed trading amount * liquidation risk rate)
Take BTC/USDT as an example, when the price of BTC/USDT is 100, if the user has 1 BTC, and he/she borrows 2 BTC, then sell all 3 BTC to get 300 USDT. The liquidation line is 110%, and the estimated liquidation price = (0*110% - 300) / (0 – 2*110%) = 136.36 USDT
If the user has 100 USDT, and he/she borrows 200 USDT, then sell all 300 USDT to get 3 BTC. The liquidation line is 110%, and the estimated liquidation price = (200*110% - 0)/(3 - 0*110%) = 73.33 USDT
If the user has 100 USDT, and he/she borrows 2 BTC, then sell all 2 BTC to get 200 USDT. The liquidation line is 110%, and the estimated liquidation price = (0*110% - 300)/(0 - 2*110%) = 136.36 USDT
Estimated liquidation price: The price estimated based on the assets and loans of your current leverage account is for reference only. The actual result shall be subject to the final execution result of the system.
Leverage = (Principal + borrowed) / (Principal + Interests)
6. Risk Control
6.1 In order to ensure the safety of account assets, for users who participate in borrowing and fixed margin leverage trading, only when the risk rate of the fixed margin account is greater than 180%, the user can transfer assets from fixed-margin account to other accounts, and the risk rate of the account after the transfer shall not be lower than 180%.
6.2 The lender may choose to purchase insurance. If the lender has purchased insurance and the borrower fails to liquidate the position compulsively (the probability of occurrence is very small), the investor protection fund shall compensate the lender for the loss until the fund is fully compensated. If the lender does not buy the insurance, he/she shall bear the loss. The investor protection fund consists of 10% of the buyer's income.
6.3 Bibox.com will manage the total market value of borrowed money. When the total market value of borrowed money reaches the upper limit of the total amount of borrowed money set by the platform, the platform will suspend borrowing and lending services until the total market value of borrowed money is lower than the upper limit. Bibox.com will adjust the upper limit of the total market value of token borrowing according to the actual operation of the market and the degree of risk.
6.4 To further protect the interests of lenders, Bibox will, on top of the total lend&borrow market, regulate the maximum value available to borrow under different margins according to the actual market conditions and extent of risk.
6.5 Investors should pay attention to investment risks and adjust the proportion of positions in time to avoid risks. All losses due to the triggering of liquidation are borne by the investor.
