Crypto Loans is an over-collateralized loan service designed to meet your liquidity needs. It offers both flexible and fixed rate loans at competitive interest rates. By using your crypto as collateral, you can borrow funds without selling your holdings, which is ideal if you believe your assets will appreciate over time and prefer to hold them long-term.

 

 

 

 

Advantages of Crypto Loans

• Seamless liquidity access: Tap into new opportunities without selling your crypto, keeping your portfolio intact and poised for growth.

• Ultimate collateral flexibility: Use a variety of assets as collateral and add as much as you want to minimize the risk of liquidation.

• Improved capital efficiency: Leverage Cross-Margin mode to optimize your capital efficiency and simplify risk management.

• Full control of funds: Use borrowed funds for any purpose on Bybit, or withdraw them to cash out.

• Flexible repayment: Borrow and repay at your convenience, with no restrictions.

 

 

 

 

Similarities and Differences Between Flexible and Fixed Rate Loans

 

 

 

To learn more about how the Flexible and Fixed Rate Loans work, refer to the Flexible Rate Loan or Fixed Rate Loan tab, respectively, on this page.

 

 

Flexible Rate Loan

Flexible Rate Loan allows you to borrow crypto without locking into a fixed term, providing you with more flexible access to liquidity. Unlike Fixed Rate Loan, Flexible Rate Loan only supports borrowing — supplying assets isn't available.

 

 

 

 

How It Works

1. Borrowing

Let's illustrate this with an example. Suppose Alice expects BTC to rise and needs extra funds to seize an opportunity. She has 30 ETH in her Funding Account but doesn't want to sell it just yet. With Flexible Rate Loan, Alice can use her ETH as collateral to borrow BTC with no fixed term.

 

The loan parameters are as follows:

 

 

Calculation Formula

Borrowable amount = Collateral amount × Collateral value ratio × Initial LTV ÷ Exchange rate

 

Using the formula, Alice borrows 0.48 BTC with her 30 ETH:

30 ETH × 100.00% × 80% ÷ 50 = 0.48 BTC

 

 

 

 

2. Interest Accrual

The interest for Flexible Rate Loan is calculated using a floating hourly interest rate, and it compounds hourly. This means that the interest from the previous hour is added to the loan amount, and the updated total is then used to calculate the interest for the next hour. Any period less than one hour will be rounded up to one hour.

 

 

Calculation Formula

Hourly Interest = Loan amount × Hourly interest rate

Loan amount = Principal + Accrued interest

Total Interest = Sum of all hourly interest amounts

 

 

Example

Suppose you borrow 1,000,000 USDT. The initial hourly interest rate is 0.0003%, and it may change over time.

 

• First hour

Hourly interest rate: 0.0003%

Interest = 1,000,000 × 0.000003 = 3 USDT

New loan amount = 1,000,000 + 3 = 1,000,003 USDT

 

• Second hour

The hourly interest rate rises to 0.00032%.

Interest = 1,000,003 × 0.0000032 ≈ 3.2 USDT

New loan amount = 1,000,003 + 3.2 = 1,000,006.2 USDT

 

• Subsequent hours

Interest continues to compound based on the updated loan amount.

 

 

 

 

3. Collateral

You can choose eligible assets from your Funding Account to use as collateral. The collateral value will be calculated in USD based on a tiered collateral value ratio.

 

 

Calculation Formula

Collateral Value = (Tier1 amount × Tier1 ratio) + (Tier2 amount × Tier2 ratio) + ... + (TierN amount × TierN ratio)

 

• Each tier amount refers to the portion of the asset's USD value that falls within that specific tier.

• Each tier ratio is the corresponding collateral value ratio applied to that tier.

 

 

Example

If John uses 6,000,000 MYRO as collateral, and MYRO is priced at $0.06, the collateral value will be calculated as follows:

USD Value = 6,000,000 × $0.06 = $360,000

Collateral Value = $100,000 × 100% + ($200,000 – $100,000) × 75% + ($300,000 – $200,000) × 50% + ($360,000 – $300,000) × 0% = $225,000

 

 

Note: The example above is for illustrative purposes only. For details on supported collateral assets and the tiered collateral value ratio, please check here.

 

 

 

 

4. Liquidation

The Liquidation LTV is the threshold at which your collateral will be automatically liquidated to repay the loan and minimize risk.

 

If the order reaches the Liquidation LTV, currently set at 92%, the liquidation process will be triggered immediately, and any pending loan orders will be canceled first. If the LTV drops to 92% or lower after cancellation, the liquidation will stop. Otherwise, forced repayment will be initiated, selling the collateral assets to repay the loan.

 

In the case of forced repayment, a 2% liquidation fee of the loan amount will be charged and deducted from the collateral. Any remaining collateral after the liquidation will be returned to your Funding Account.

 

 

 

 

 

Fixed Rate Loan

Fixed Rate Loan is a peer-to-peer (P2P) loan service that allows users to borrow or lend with fixed interest rates and terms.

 

 

 

 

How It Works

1. Order Placement

To Borrow

As a borrower, you can either select an existing order from I Want to Borrow or create a custom order by specifying your preferred interest rate, duration and borrowing amount. Once you place a custom borrow order, the system will automatically match it with available supply orders.

 

 

Example

Suppose Bob places a borrow order for 100,000 USDT at an interest rate of 6%. If there are two supply orders available — Order A for 50,000 USDT at 5% and Order B for 50,000 USDT at 4% — the system will match Bob's borrow order with both. Despite the lower rates specified by the suppliers, Bob will still pay the 6% rate he has selected, which allows the suppliers to earn more interest than initially expected.

 

 

Auto-Repay

When placing a borrow order, you can choose to enable Auto-Repay. If enabled, the assets in your Funding Account will be automatically used to repay the loan when the borrow order expires, helping you avoid overdue penalties. Make sure your account has sufficient funds for full repayment, as partial repayments are not supported.

 

If there aren't enough assets in your Funding Account, the system will retry repayment every minute until it's successful or the 24-hour grace period ends.

 

If all attempts fail:

• You'll need to repay the loan manually.

• If repayment is not completed within the 24-hour grace period, your collateral will be liquidated, and a 2% liquidation fee will apply.

 

For more information on penalty interest during the grace period, refer to the Interest Accrual section below.

 

 

 

To Supply

The supply process works similarly to the borrowing process. As a supplier, you can either select an existing order from I Want to Supply or create a custom order by setting your preferred interest rate, duration and lending amount. Once you place a custom supply order, the system will automatically match it with available borrow orders.

 

 

Example

Suppose Alice places a supply order for 100,000 USDT at an interest rate of 5%. If there are two borrow orders available — Order A for 50,000 USDT at 6% and Order B for 50,000 USDT at 7% — the system will match Alice's supply order with both. The borrowers will still pay their respective rates of 6% and 7%, while Alice earns a higher return than 5%, receiving the borrowers' interest payments minus the platform management fees.

 

Notes:

— The token amount of supplied assets remains principal-protected throughout the process.

— Bybit will charge 10% of the regular interest and 30% of any overdue interest paid by borrowers as management fees, with the remaining amount distributed to suppliers as earnings.

 

 

 

 

2. Order Matching

The system matches borrow and supply orders with similar interest rates and terms every minute (e.g. 11:05AM, 11:06AM and so on). For instance, if you place an order at 11:05:30AM and there's a matching order in the order book, your order will be executed at the next matching time, which is 11:06AM.

 

If the order book contains an order that meets the borrowing conditions or offers better terms, the borrower's order will be matched at their desired interest rate.

 

For suppliers, if there's a borrower willing to accept a higher interest rate, the system will prioritize that match. The supplier will earn higher interest based on the borrower's specified interest rate, minus a small management fee charged by the platform.

 

 

 

 

3. Interest Accrual

The interest rate for a Fixed Rate Loan is locked in when the borrower confirms the loan. Interest is charged upfront when the loan assets are transferred. Once a borrow order is matched, the borrowed assets — minus the estimated interest — will be credited to the borrower's Funding Account. The supplier will receive both the principal and interest at the end of the loan term or when the overdue period concludes. 

 

Interest is calculated as follows:

Borrowing interest charged = Borrowed amount × Annualized interest rate × Duration ÷ 365

Supplying interest earned = Supplied amount × Annualized interest rate × Duration ÷ 365 (deducting platform management fees)

 

 

Notes:

— If the loan is overdue, a penalty of three times the interest will automatically apply, accruing hourly during the grace period following the expiry date. If the loan remains unpaid by the end of this period, the collateral will be automatically liquidated to cover the loan and overdue interest. A liquidation fee of 2% of the loan amount will also be charged.

— If the borrower repays early, the prepaid interest will not be refunded. In this case, the supplier's funds will still be returned on the settlement date.

 

 

 

 

4. Collateral

As a borrower, you can choose eligible assets from your Funding Account to use as collateral. The collateral value will be calculated in USD based on a tiered collateral value ratio.

 

 

Calculation Formula

Collateral Value = (Tier1 amount × Tier1 ratio) + (Tier2 amount × Tier2 ratio) + ... + (TierN amount × TierN ratio)

 

• Each tier amount refers to the portion of the asset's USD value that falls within that specific tier.

• Each tier ratio is the corresponding collateral value ratio applied to that tier.

 

 

Example

If John uses 6,000,000 MYRO as collateral, and MYRO is priced at $0.06, the collateral value will be calculated as follows:

 

USD Value = 6,000,000 × $0.06 = $360,000

Collateral Value = $100,000 × 100% + ($200,000 – $100,000) × 75% + ($300,000 – $200,000) × 50% + ($360,000 – $300,000) × 0% = $225,000

 

 

Note: The example above is for illustrative purposes only. For details on supported collateral assets and the tiered collateral value ratio, please check here.

 

 

 

 

5. Liquidation

The Liquidation LTV is the threshold at which your collateral will be automatically liquidated to repay the loan and minimize risk.

 

If the order reaches the Liquidation LTV, currently set at 92%, the liquidation process will be triggered immediately, and any pending loan orders will be canceled first. If the LTV drops to 92% or lower after cancellation, the liquidation will stop. Otherwise, forced repayment will be initiated, selling the collateral assets to repay the loan.

 

In the case of forced repayment, a 2% liquidation fee of the loan amount will be charged and deducted from the collateral. Any remaining collateral after the liquidation will be returned to your Funding Account.

 

 

 

For more information on Crypto Loans, refer to the following articles:

• FAQ — Crypto Loans

• How to Get Started With Crypto Loans

• Loan-to-Value Ratio and Liquidation (Crypto Loans)