Overview of Crypto-Backed Loans
What are Bybit Crypto-Backed Loans?
Crypto-backed loans are an overcollateralized lending service designed to meet users' liquidity needs without selling their digital assets. This service offers both variable-rate loans and fixed-rate loans (Deposit & Lend) with competitive market rates. Ideal for long-term investors bullish on asset appreciation, it allows borrowing against crypto holdings.
Key Differences Between Variable-Rate Loans and Fixed-Rate Loans (Deposit & Lend)
| Feature | Variable-Rate Loans | Fixed-Rate Loans (Deposit & Lend) |
|---|---|---|
| Provider | Bybit | Depositors |
| Interest Rate | Floating, compounded hourly | Fixed at order confirmation |
| Term | Flexible (no fixed term) | Fixed (7–180 days) |
| Repayment | Manual (hourly interest) | Auto/manual (full prepayment) |
| Service Scope | Borrowing only | Borrowing & depositing |
| Grace Period | N/A | 24 hours (3x hourly rate) |
| Advantage | Flexibility | Predictable costs |
Who Can Use This Service?
Requirements include:
- Standard or corporate KYC verification.
- Sufficient collateral in the Funding Account.
- Meeting minimum order thresholds.
Loan Usage
Funds can be used freely—for trading (spot/derivatives), investments, or withdrawals to external platforms.
Supported Accounts
Loans are accessible via Funding Accounts (including sub-accounts), which handle collateral, disbursements, repayments, and asset returns.
Borrowing & Depositing
Supported Assets
USDT, BTC, ETH, and others. View the full list on the Loan Data Page.
Loan Limits
Determined by collateral value and asset-specific caps. Details in the LTV & Liquidation Guide. Limits apply across all loan types and accounts.
Fees
- Borrowers: Interest (plus penalties if overdue) + 2% liquidation fee.
- Depositors: Interest earned (10% management fee; 30% for overdue interest).
Viewing Orders
Check Dashboard on the loan homepage for active loans, repayment history, collateral, and accrued interest.
Canceling Deposit & Lend Orders
Only unfilled orders can be canceled. Partially filled orders allow canceling remaining portions.
Depositor Payouts
Principal + interest are returned at the term’s end (or after grace period). Early repayments don’t trigger early returns.
Early Withdrawals for Depositors
Not permitted post-execution. Funds remain locked until maturity.
Order Matching
Orders may fill via one or multiple counterparties, prioritizing best available rates.
Adjusting Collateral
Add/remove collateral via Dashboard:
- Adding: Lowers LTV, reducing liquidation risk.
- Removing: Allowed only if current LTV ≤ initial LTV.
👉 Learn how to manage collateral
Interest & Repayment
Interest Calculation
- Variable-rate: Hourly compounding.
- Fixed-rate: Prepaid at locked rate (non-refundable).
Repayment Methods
- Variable-rate: Full/partial anytime (hourly billing).
- Fixed-rate: Full prepayment only (no partials).
Repayment Currency
Must match borrowed asset (e.g., repay USDT loans with USDT).
Using Collateral for Repayment
Currently unsupported. Future updates may enable this feature.
Auto-Repayment
- Variable-rate: Manual only.
- Fixed-rate: Enable auto-repay (requires sufficient funds).
Default Consequences
24-hour grace period (3x interest). Post-grace, liquidation occurs (2% fee + asset sale).
Collateral Release Post-Repayment
Full settlement of all loans required for collateral return.
Loan-to-Value (LTV) & Liquidation
What Is LTV?
Ratio of borrowed amount to collateral value, calculated using Bybit’s latest prices. Details here.
LTV Calculation for Mixed Loans
Combined LTV for all active loans (variable + fixed) under cross-margin mode:
LTV = (Outstanding principal + interest) / Collateral value
Legacy Loans
Pre-update loans use original LTV rules. New loans follow updated frameworks.
Managing Rising LTV
- Margin Call: Alert at 85% LTV (via email/SMS).
- Liquidation: Triggered at 100% LTV (assets sold to cover debt).
FAQ Section
Q: Can I borrow multiple assets simultaneously?
A: Yes, but each loan is asset-specific (e.g., BTC loans require BTC collateral).
Q: What happens if collateral value drops suddenly?
A: Depositing more assets or repaying part of the loan lowers LTV to avoid liquidation.
Q: Are loans insured?
A: No. Users bear market risks; Bybit isn’t liable for liquidation losses.
Q: How often are interest rates updated for variable loans?
A: Hourly, based on market conditions.
Q: Can I extend a fixed-rate loan term?
A: No. Terms are fixed at inception; repay and re-borrow if needed.
Q: Is there a minimum loan amount?
A: Yes, varies by asset. Check the Loan Data Page.