Loan,Transfer,Interest calculation and Repayment

Related functions of margin trading:

1.Loan Account
Each loan trading pair corresponds to a loan account. For example, BTC / USDT corresponds to a BTC / USDT loan account (including two sub-accounts of BTC and USDT). AOFEX users can transfer BTC and USDT currency assets in the trading account to BTC / USDT loan account;  the currency that can be applied for loan is two types of currency assets: BTC and USDT.

2.Transfer
Users cannot temporarily deposit funds directly into loan account, and need to transfer funds from trading account to  loan account by means of transfer. When a user borrows money, you can transfer the portion of the loan account with a risk rate higher than 200% to trading account; when the user does not have a loan, you can transfer all available funds in the account to trading account. Among them, the funds in the loan account can be directly traded in the spot trading, and the market in the loan transaction area is the same as that in the spot trading area.

3. Apply for a loan

Users enter loan management and choose a loan account to apply for loan assets. The number of digital currencies that users can apply for loans depends on the account principal and margin multiple. The maximum user can apply for a loan = net assets × (multiplier -1)-borrowed assets For example: if the platform supports a maximum margin of 5 times, the amount of digital currency that users can borrow can be 4 times as the principal.

How to calculate risk rate?
Risk rate of user's loan account = Total assets / (loan assets + unreturned interest) × 100%

Note: The total assets are all assets in the loan account, which are converted into current valuation of  target currency

4. Repayment

When a user returns a loan asset,, the unit is the loan currency. The return currency must be the same as the loan currency.

The amount of loan repayment = loan asset + interest; when the loan is repaid, the user can choose two methods: full repayment and partial repayment. Partial repayment will shall pay the interest first and then repay loan asset.

Margin products are daily interest, which is calculated once for the first time for a loan order, and then once a day at 0 o'clock. Calculation formula:Interest = outstanding amount × daily interest rate × days (less than 24 hours will be counted as 1 day and interest will be calculated at 0 :00 per day).