Bitfinex Borrow
Your personal #cryptoloan
What is Bitfinex Borrow
Bitfinex Borrow is a peer-to-peer (P2P) platform that allows users to borrow funds from other users, providing cryptocurrency assets as collateral.
Bitfinex acts as a facilitator that provides the technology that enables borrowers and lenders to transact with each other. Bitfinex Borrow allows borrowers and lenders to experience the transparency of P2P along with the other benefits, such as the high rewards and the flexibility it has to offer.
As a borrower, there are no limitations on how you can use the funds you obtain through Bitfinex Borrow. You can also set the loan duration and interest terms to suit your needs and situation.
However, there are specific requirements that you must fulfil to be eligible as well as risks that you must manage upon successful loans. Check our FAQs to learn more about Bitfinex Borrow.
The amount that can be borrowed is subject to the type and the amount of collateral you own with an overall limit of $250,000. Use the Loan Calculator above to find out how much you can borrow as well as the minimum margin requirements you must maintain.
Check out the Bitfinex Borrow article for more information.
Why Borrow with us
Transparent mechanism
Our P2P funding market allows both borrowers and lenders to filter and choose the terms and conditions that suit their preferences best.
Flexible terms
You can set your own payment terms and the length of the loan to cater to your needs and situation.
Better options for collateral
Collateral can be provided in Bitcoin or Ethereum with many more to come.
No credit check required
Unlike a traditional bank, our borrowing platform is powered by its users. Our powerful P2P lending platform allows users to benefit from lending out their own funds to you. This means, as verified users, you can simply set your terms, deposit your collateral and your loan will be completed on the same day.
Transparent mechanism
Our P2P funding market allows both borrowers and lenders to filter and choose the terms and conditions that suit their preferences best.
Flexible terms
You can set your own payment terms and the length of the loan to cater to your needs and situation.
Better options for collateral
Collateral can be provided in Bitcoin or Ethereum with many more to come.
No credit check required
Unlike a traditional bank, our borrowing platform is powered by its users. Our powerful P2P lending platform allows users to benefit from lending out their own funds to you. This means, as verified users, you can simply set your terms, deposit your collateral and your loan will be completed on the same day.
How to get started with Bitfinex Borrow
Once you have created and verified your Bitfinex account:
- 1
Deposit enough collateral to your margin wallet
- 2
Choose the currency and amount of your loan
- 3
Set your terms and click Borrow
- 4
Your loan is now credited into your margin account
FAQs
Why P2P lending?
P2P lending offers a transparent process for both lenders and borrowers thus preventing any funds being created from thin air, which in a broader context, also takes part in the prevention of inflation. For lenders, it offers an attractive reward scheme, whereas, for borrowers, it gives the flexibility to meet their needs better.
Do I need to be a verified user to borrow funds?
You must be a verified user to use the Bitfinex Borrow service. Depending on the level of verification you have completed, different options will become available to you through Bitfinex Borrow. For example, you must be fully verified in order to borrow fiat. To learn more about verification you can visit our Knowledge Base article.
How can I use the borrowed funds?
You may use the funds either on the Bitfinex platform or for any purchase outside of the Bitfinex platform. Bitfinex Borrow lets you borrow funds in the same way as a traditional loan service where you can use the funds to purchase a new computer, buy a holiday package, or finance a project.
Will I get penalized for early payments?
No, if you wish to settle your loan early, you simply move funds to your margin wallet and end the agreement. In the same way, you can also repay in part, which will then decrease your daily interest. However, if you use the loan for less than 1 hour, you have to pay interest for a minimum of one hour.
Why are the amount of funds that can be borrowed and the margin limit different for each collateral?
The amount of borrowed funds differs according to the collateral type, depending on several factors, such as its quality and liquidity. This value is expressed by the initial margin requirement of the underlying margin pair. For example, if you’re using Bitcoin as collateral, you need to maintain the minimum initial margin requirement of 111.11%. So, if you’re borrowing $900, you would deposit $1,000 worth of BTC into your margin wallet as collateral for the loan.
Is there a minimum and maximum amount that can be borrowed?
Yes. The amount of the loan is subject to a minimum limit of $100 equivalent for each collateral and borrowed currency pair. The maximum amount you can borrow is $250,000 equivalent across all borrowing in all master and sub accounts.
You mentioned about the risks that borrowers must manage, what are they?
One risk we were referring to is the risk of collateral liquidation if borrowers don’t keep the maintenance margin above the required limit. Borrowers need to consider various factors that could affect their collateral’s value and take necessary actions to mitigate their own risks and prevent liquidation. For additional discussion of risks, see our Risk Disclosure Statement.
What is the difference between a variable rate loan and a fixed rate loan?
With Bitfinex Borrow, you can choose between a variable rate or fixed rate loan.
The interest charged for a variable rate loan will change throughout the term of the loan. At the time you start borrowing under a variable rate loan, Bitfinex Borrow will automatically route and execute one or more market order loan transactions on your behalf to obtain the funds you wish to borrow from lenders in the Bitfinex financing order book. Each of those loans will have a set term, however Bitfinex Borrow will repeat the automatic routing and execution transaction described above on your behalf as those loans expire, until you repay the loan. The rates, payment information and other information reflected above represent an estimate, based on current market conditions. Those values are hypothetical and not guaranteed to be the same as, or reflective of the actual interest rate, payment obligations or other information applicable to a loan you may receive. Those values are provided for information purposes only and solely as a personal reference tool.
The interest charged for a fixed rate loan is fixed for the term of the loan. You will agree on a rate and duration for the loan with the lender through Bitfinex Borrow. If you do not repay the fixed rate loan before it expires, when your fixed rate loan expires Bitfinex Borrow will convert it to a variable rate loan by entering into a variable rate loan on your behalf in order to repay the fixed rate loan when it expires.
When does my loan start?
If you are borrowing on a fixed rate loan, your loan starts as soon as you receive the borrowed funds. You’ll start paying interest right away, whether you leave your funds in your margin wallet or take them out.
If you are borrowing on a variable rate loan, your loan does not start until you take funds out of your margin wallet. Until you actually remove funds from your margin wallet, the balance you see is a hypothetical amount that you could potentially borrow based on the collateral you’ve provided and not guaranteed to be the same as, or reflective of the actual amount you are able to borrow when you try to initiate a loan transaction by removing funds from your margin wallet.
The amount of potential borrowing is provided for information purposes only and solely as a personal reference tool.
Is the loan period fixed?
No, you can repay your loan at any time and keep the loan open as long as the margin position remains open. Fixed rate loans will have an expiry date, based on what you agree upon with the lender, but if you choose not to repay the loan before it expires, Bitfinex Borrow will convert it to a variable rate loan by entering into a variable rate loan on your behalf in order to repay the fixed rate loan when it expires.
It looks quite similar to DeFi. How is Bitfinex Borrow different from DeFi?
It is more straightforward than DeFi as you don’t need to open a smart contract in the process. It also allows for more collateral types and enables USD direct loans, which means more use cases can be covered.
What if I'm unable to return the borrowed funds within the loan period?
If you're unable to return the funds in time, your loan will be automatically renewed when the loan period ends.
There’s no additional fee, and by default, the best rate is used with a minimum period. However, we advise borrowers to manage the rates according to their needs and situations for their advantages.
For more info on how to set up the borrow rates, read here.
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