1. General Principles
1. These Rules are formulated in accordance with the principles of fairness, openness and impartiality for the purposes of regulating margin trading and Margin Loans of digital assets, maintaining the market order and protecting the legitimate rights and interests of investors.
2. These Rules shall apply to cross Margin Loan and repayment, cross margin trading conducted on this Website. Any matter for which there is no specific provision in these Rules shall be subject to HBTC Margin Trading Service Agreement, User Agreement and other relevant provisions of this Website.
2. Loan Rules
1. The Maximum Amount of Margin Loans refers to the maximum borrowable quota that may be borrowed by a specific user according to the quota of the maximum amount of cross margin available and the Platform’s risk control rules. Each currency has a minimum and maximum loanable amount. When the loan principal does not reach the minimum loanable amount, the loanable amount is displayed as 0. At this time, please transfer sufficient principal into the margin account.
In these rules, the formula for calculating the Security Deposit can be borrowed as follows:
The total loanable assets of Security Deposit = sum ((assets amount- loan amount) * coefficient * conversion rate)
Occupied Security Deposit Assets = sum (loan amount * conversion rate / (margin multiple -1))
The Amount of Loans = (the total loanable assets of Security Deposit - Occupied Security Deposit assets) * (margin multiple-1) / conversion rate
Loaned assets: the total assets that have successfully applied for loans from the platform;
Loanable quantity: indicates the number of loans that can be applied to the platform. The maximum loanable amount is subject to the page display;
After the successful grant of a Margin Loan, the Platform system shall begin accruing the service fee payable thereon immediately, upon which, the User may use the borrowed digital assets to engage in margin trading in trading pairs permitted in cross margin trading.
3. Rules for loan interest rate and interest calculation
1. HBTC "Second Calculation"
HBTC margin loan service fee is calculated in terms of "Second Calculation" function. "Second Calculation" means that the loan interest rateis accurate to every second. Counts the time from the completion of the loan application to the full repayment. The actual borrowed time is accurately calculated in seconds, and the loan interest ratecalculation is synchronized to the second. That is, "the actual borrowing of 15 seconds only calculates the fee of 15 seconds". "Second Calculation" can maximize the cost savings for users.
Loan flow refers to a loan record that will be generated after a user successfully applies for a loan. It contains information such as the start time of the loan, the amount of the loan, and interest generated. This record is the loan flow.
Interest rate refers to different loan interest rates set by the platform according to different currencies. Users can view the interest rate when using the loan function.
2. The interest calculation rule calculates the interest in seconds based on the loan flow, interest rate. At the same time, the system automatically calculates the interest once per hour.
Loan interest = Loan assets * Daily interest rate / 86400 * Loan time (seconds)
3 The loan interest will be included in the safety level if it is not settled or returned.
4. Rules for Currency Repayment
1. The user can initiate repayment at any time after the loan. When the user returns the loan, the interest shall be repaid first, and the principal of the loan shall be repaid after the current interest payable is settled.
2. The currency assets of the user's repayment must be consistent with their corresponding loan currency assets and cannot be replaced with other currency assets. Therefore, users must ensure that there are sufficient assets of this type in the margin account when repaying.
3. Loan interest settlement refers to the process in which the user returns the current interest during or at the end of the loan process. There are two types of loan settlement: active settlement and passive settlement. Passive interest settlement means that the system will automatically trigger interest settlement at 8 am (GMT+8) every day, and automatically return the loan interest that has not yet been returned by the loan user. Active interest settlement refers to the return of interest when the user repays in full or in part.
The final settlement is calculated uniformly when the liquidation occurs to return assets.
The currency assets of interest accrual and interest settlement are consistent with their corresponding loan currency assets.
Note: The interest payable can be seen in the loan record which may be different from the actual interest settlement at the time of the return. The reason is that the "Second Calculation" will calculate the actual interest payment that has to be paid within the interest calculation period. Therefore, the final interest payable shall be calculated based on the actual repayment.
5. Security Rules
1. Users who participate in margin loan use the net assets in the margin account as collateral, and the digital assets in other accounts are not counted as collateral assets for Cross Margin Trading.
In this rule, Security = total value of margin assets / value of loaned assets
When the security level is greater than the withdrawal line, assets in margin account above the withdrawal line can be transferred to the wallet account.
When the safety level touches the warning line and the additional line, the system will send you the warning information and the additional information by email or SMS in advance.
When the safety level touches the forced liquidation line (maintaining the risk rate), the system will close the position according to the forced liquidation rules.
2. HBTC has the right to monitor the safety of the user's cross margin account in real time and take corresponding measures according to changes in safety.
6. Forced Liquidation Rules
1. In order to better protect the rights and interests of investors, when the safety level touches the warning line and the additional line, the system will send you the warning information and additional information by email or SMS in advance. When the safety reaches the liquidation line, the system will close the position of the Cross Margin Account.
2. When the system closes the position of the Cross margin account, it will first freeze the margin account and execute the position-closing process, which will force to sell the assets held in the margin account to repay the loan. After the liquidation is completed, the remaining assets are positive in the margin account, which can be used normally. When the remaining assets are negative, the platform has the right to freeze the user's account to recover related debts.
7. About the Compensation for Worn-out Position Losses
1. Users shall be aware of the risks of margin trading, adjustment to proportion of your position in time to avoid the risk of forced liquidation. All losses caused by margin accounts that trigger forced liquidation shall be borne by the User, including but not limited to: the losses caused by the User’s failure to take appropriate measures in time after receiving the prompt message sent by the system when the rate of risk for margin account reaches the warning line and then quickly reaches the forced liquidation line due to volatile market conditions.
2. If after the system forcibly liquidates the margin account to repay for all margin loans of the platform, should there be a negative balance in the user’s margin account, the user shall deposit assets within 3 working days to repay the remaining loans, or the platform has the right to file lawsuits at the local courts for compensation including loan interest at 18% APY generated for the period starting from the filling of the lawsuit to the time of the final compensation.
8. Risk Control
1. HBTC will manage the amount of loans. When the amount of loans reaches the upper limit of the total amount of loans set by the platform, the platform will suspend lending operations until the total amount of loans falls below the upper limit. HBTC will adjust the upper limit of total loan according to the actual market operation and the degree of risk.
2. In order to better protect the rights and interests of users, the platform will control the maximum loanable amount of different margin multiples on the basis of the total loan amount. HBTC will adjust the upper limit of the maximum loan amount of different margin multiples according to the actual market operation and risk level.
3. The User shall pay due attention to the risks of margin trading and timely adjust their position-holding ratio to avoid risks. All losses that arise when the User’s margin account triggers forced liquidation shall be borne exclusively by the User.
1. HBTC provides information release, supervision and risk control services for Cross Margin transactions and loan, but does not provide any income guarantee and capital preservation commitment for users' margin transactions conducted in HBTC. Investors should be fully aware that there is a large leverage business Risk, self-assess the possible losses, and voluntarily participate on the basis of confirming that the risks are controllable and affordable.
2. These rules are formulated by the HBTC platform and will be effective after announcement to all platform investors, and the same when amended.
3. The HBTC platform is responsible for interpreting this rule.