Update on Institutional Lending and FAQ

Starting from Mar 1, 2023, 8AM UTC, Bybit will be replacing its current 0% interest loan event with a new Institutional Lending event.  Bybit

Interest-free loans can still be enjoyed and the interest-free quota will be determined by your Derivatives and/or Spot trading volume.

Interest will be charged for any amount exceeding the interest-free quota.

The updated Institutional Lending product is designed to complement your institution's trading strategy and improve capital efficiency through a tiered borrowing loan structure with a discount mechanism designed to incentivize trading activity.

We understand that you may have questions regarding this update, so we have included a list of frequently asked questions to help you better understand the Institutional Lending product.

Frequently Asked Questions

  1. Is it possible for participants to fulfill multiple volume requirements and accumulate interest-free quota?

Answer: Users can only be eligible for interest-free quota from one (1) Derivative trading volume tier, and one (1) Spot trading volume tier. The calculation will be performed on a monthly basis, and your respective account manager will inform you of the highest interest-free quota available to you.

Scenario 1: User borrows $4 million and achieves $80 million in Spot maker volume & $200 million in Derivatives taker volume

Result: $1 million (interest-free) + $3 million (interest charged)

Scenario 2: User borrows $12 million and achieves $200 million in Spot taker volume & $3.5 billion in Derivatives maker volume

Result: $10 million (interest-free) + $2 million (interest charged)

Scenario 3: User borrows $13 million and achieves $2 billion in Derivatives maker volume & $500 million in Derivatives taker volume

Result: $6 million (interest-free) + $4 million (interest charged)

  1. How is the interest fee charged?

nswer: The interest rate will be locked in after agreement with your respective account manager. For the first month, the interest will be based on your current volume performance when you take up the loan. The interest for the second month will be based on the first month's performance, and similarly for the following months.

  1. Is there an early repayment clause?

Answer: Unless a special waiver has been approved, there will be a penalty clause that requires participants to pay 20% of the remaining month's aggregated interest.

Scenario: User agrees to participate for 4 months at a 3.92% annual interest rate. After 1 month, the user requests for early repayment of the loan.

Calculation:

The monthly interest rate is calculated as 3.92% / 12 = 0.3266%.

The interest incurred for the first month is 0.3266%.

As the participant is returning the loan after one month, there are three remaining months.

The penalty for early repayment is 20% of the remaining interest, which is calculated as 0.3266% * 3 * 0.2 = 0.196%.

  1. Where can I find the product specification?

Answer: Please refer to this Help Center article.

If you have any further questions or require more information, please do not hesitate to contact your Bybit account manager.

Visit Link - https://bybitapp.com/bybit-bonus-referral-code-30000-affiliate-program/