What is a CoinEx Loans
CoinEx Loans is a financial service designed to meet your short-term liquidity needs.
Without selling these assets, You can borrow one type of crypto asset by using one or more cryptos as collaterals, and the borrowed assets can be used for trading, investment in financial products, or direct withdrawals.
Advantages of CoinEx Loans
1. Introducing "Tiered Collateral Discount" mechanism
CoinEx establishes discounts based on collateral risk profiles to calculate effective collateral value, ensuring market stability and protection against excessive market volatility. This is particularly effective for tokens with moderate market depth, preventing dramatic price fluctuations and providing additional asset security.
2. Introducing "Loan Asset Recovery" mechanism
When the lending pool reaches its risk threshold, the system pauses new loans and waits for natural maturity returns. This gentle approach allows the pool to recover to safe levels while avoiding sudden forced liquidations, better protecting your collateral assets.
3. Instant arrival and auto-renewal
Borrowed funds are credited immediately after loan initiation, with no waiting period. Auto-renewal is enabled by default at the start of a loan. Every 10 days when the loan term ends, if the platform's liquidity pool supports renewal, the system automatically processes it, preventing unintended liquidations due to oversight or missed deadlines.
4. Secure and stable
During technical upgrades of collateral assets (such as rebranding or cross-chain migrations), lending services continue to operate normally, and existing pledged assets remain valid. Additionally, CoinEx injects a portion of daily lending interest income and liquidation fees into an insurance fund to cover potential losses incurred.
5. Diverse Collateral
Multiple cryptos are supported as loan collateral. When borrowing a particular crypto, you can use more than one crypto as collateral at the same time, simple and convenient.
Key Concepts of CoinEx Loans
1. Loan-to-Value Ratio (LTV)
The Loan-to-Value (LTV) ratio is a key indicator for assessing the risk level of a loan position.
Current LTV = (Value of Assets to be Repaid (Borrowed Assets + Interest) / Value of Collateral Assets) * 100%
After partial repayment, LTV = (Value of Assets to be Repaid - Value of Repaid Assets) / Value of Collateral Assets * 100%
CoinEx manages risk through the following three types of LTV:
| LTV Type | Description | System operation |
| Initial LTV | Determining the maximum amount a user can borrow based on the value of the collateral assets. | Maximum loanable amount = Effective value of collateral × Initial LTV |
| Alert LTV |
Warning threshold: The system sends warnings to users when: Current LTV ≥ Alert LTV |
The system sends alert notifications, suggesting users add collateral to mitigate risk. |
| Liquidation LTV |
Liquidation threshold: The system will take action when: Current LTV ≥ Liquidation LTV |
The system automatically liquidates (sells) collateral assets to repay the outstanding loan |
2. Discount Rate
The discount rate is set by the risk rate of the collaterals and used to calculate collateral value. Practical collateral value = Collateral market value * Discount rate.
For example, the discount rate of BTC is 90%, and the initial LTV is 70%;
To borrow USDT with a $100 BTC collateral, then:
BTC Effective Collateral Value = 100 * 90% = 90 USDT
Maximum Loan = 90 * 70% = 63 USDT
3. Upper Limit of Collateral Value
Each loanable coin has a value limit, meaning, the calculated effective collateral value cannot exceed this limit, regardless of how many cryptos are used as the collaterals.
About Automatic Loan Renewal
Each new loan creates a separate loan order with a 10-day term, starting from the order creation time. When the term ends, the system renews the loan automatically by default — no manual action is required.
1. Successful Renewal
Automatic renewal is enabled by default when you borrow. When the 10-day term ends, the loan is renewed automatically as long as the platform has sufficient liquidity.
2. Failed Renewal (Grace Period)
If the platform's liquidity is insufficient at the time of expiry, the loan order enters a grace period. During this period, the system automatically attempts renewal every 24 hours:
- Renewal successful: The order resumes as normal, and the process ends.
- Renewal failed: The system waits another 24 hours before trying again, up to a maximum of 7 attempts.
- All 7 attempts fail: The system initiates forced repayment. (Refer to Point 8 for details.)
Note: Hourly interest continues to accrue throughout the grace period, at the same daily rate as your previous loan cycle.
3. Automatic Renewal Disabled
You can manually disable automatic renewal. Once disabled, the order will trigger forced repayment immediately upon expiry, with no grace period. (Refer to Point 8 for details.) If automatic renewal is disabled when you borrow, you can still enable it at any time afterward.
4. Multiple Loan Orders in the Same Position
Within the same position, disabling automatic renewal on any single order will disable renewal for all orders in that position. Please consider the impact on your other loan orders before disabling this feature.
Once automatic renewal is disabled, the system will repay the loan in order of expiry, starting with the earliest.
About Loan Interest Rates
1. Loan Interest Rates
The overall loan interest rates fluctuate with market conditions and are updated once daily. For specific details, please refer to the "CoinEx Loans" page.
For each new loan, the daily interest rate is set at the current floating rate on the borrowing date and remains fixed for the entire 10-day loan period.
The borrowing interest rate is also affected by your VIP level, please refer to the Borrowing daily interest rate for details.
2. Interest Calculation
Once the loan is successful, 1 hour of interest is generated immediately. After that, the interest is calculated at every o'clock based on the to-be-repaid loan amount, without compounding unpaid interest.
- Initial Interest = Single Loan amount * Daily Interest Rate / 24
- Subsequent Hourly Interest = Current To-Be-Repaid Loan Amount * Daily Interest Rate / 24
3. Others
If a crypto used as collateral for a loan undergoes an airdrop, fork, or other event that generates new assets, the specific rules regarding how those new assets will be handled will be subject to our announcements.
Repayment Instructions
1. Repayment Rules
(1) Both full and partial repayments are supported. After partial repayment, the remaining loan amount must meet the minimum borrowing quantity. If this condition is met, repayments are applied to orders chronologically. If not met, the repayment will be rejected.
E.g. User A has two loan orders and wants to repay 1020 USDT partially. The minimum borrow amount is 50 USDT.
- Order 1000001: 60 USDT borrowed, can be fully repaid, leaving 960 USDT (1020 - 60) for further repayment.
- Order 1000002: 1000 USDT borrowed. After repaying 960 USDT, 40 USDT would remain, which doesn't meet the 50 USDT minimum threshold.
Therefore, this partial repayment fails as it doesn't meet the requirements.
(2) Repayments are applied to interest first, then principal.
(3) After full repayment, the system returns the user's collateral assets.
2. Repayment Methods
(1) Default repayment is to repay with the borrowed coin, i.e. repaying with the same coin that was borrowed.
(2) You can also repay with the collateral. However, this method only supports full repayment, not partial. Your collateral will be systematically swapped to the to-be-repaid assets and directly used for loan repayment until the debt is fully repaid.
About Insurance Fund
CoinEx Loans and margin trading share the same insurance fund, which is funded through two sources:
(1) A portion of the daily interest earned on CoinEx Loans and margin borrowing.
(2) The liquidation fees charged from loans or margin liquidation due to falling collateral values.
CoinEx reserves the right to allocate platform revenue towards the insurance fund using alternative methods in the future, apart from those mentioned above.
About Forced Repayment and Liquidation
1. Trigger Scenarios
The following two scenarios will trigger automatic repayment. The repayment methods and fee rules differ between them. Please note the distinction.
| Scenario | Trigger Condition | Repayment Method |
| Scenario 1: Forced Repayment at Loan Expiry | The loan order expires with automatic renewal disabled; or automatic renewal is enabled, but fails 7 consecutive times. |
If spot balance ≥ full repayment amount due: the entire amount will be repaid using the spot balance. If spot balance < full repayment amount due: the entire amount will be repaid by selling collateral assets. |
| Scenario 2: Forced Liquidation Due to Excess LTV | Current LTV ≥ Liquidation LTV | Collateral assets are sold directly and converted into the borrowed coin to repay the loan. Assets in the spot account will not be used. |
2. Liquidation Rules (Scenario 2 Only)
(1) Liquidation Order
When multiple collateral assets are held, the system will convert them into the borrowed coin in a predefined sequence until the outstanding debt is fully repaid.
(2) Liquidation Fee
The liquidation fee applies only to Scenario 2 and is charged after the position has been fully liquidated. It is calculated and collected as follows:
- Fees: Total amount due (principal + interest) × 2%, denominated in the borrowed coin
- Conversion: Converted into the equivalent quantity of collateral coins at the index price
- Collection: Deducted from collateral coins in the predefined liquidation sequence until the full fee amount has been collected
- Allocation: The collected fee is transferred to the Insurance Fund of the corresponding coin
(3) Liquidation Outcome
Once liquidation and fee collection are completed, any remaining collateral will be returned to your account.
Please note:
In exceptional cases (such as under-collateralization, where a shortfall remains after selling all collateral assets), the Insurance Fund will automatically cover the shortfall. No liquidation fee is charged in the event of bad debt.