If you've been thinking about availing of Coins.ph's Crypto on Credit to trade on higher volumes, but got some questions? Don't worry, we've got you covered!
How to apply or borrow?
You can borrow assets to trade with higher volumes using Crypto on Credit. On the Coins website, head over to the Credit tab and select which assets you want to borrow.
When you first visit the Crypto on Credit service, you would start with an empty balance in your Credit Wallet. You would need to add some funds from your Spot Wallet to serve as collateral for any assets you want to borrow.
What is Spot Wallet? and Crypto Wallet?
You automatically get a Credit Wallet when using Crypto on Credit. This is to separate your initial funds - PHP and cryptocurrency into the now Spot Wallet, which were initially under your Total Balance on the Portfolio tab.
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How to increase credit limit?
If you are just starting with Crypto on Credit or if the maximum credit amount is not enough for your trade, you can click the Increase credit button to adjust this amount.
Why is my Credit Limit 0.00, what should I do?
It is expected for first-time users to have a 0 Credit Limit on your Coins account, as no funds have been transferred yet for collateral. To increase your Credit Limit, simply click the Increase Credit button and transfer funds from your Spot wallet to your Credit wallet as collateral.
Can I only receive credit equal to my Peso collateral available in my Spot Wallet?
You can borrow more than or less than the collateral you transfer from your Spot Wallet to your Credit Wallet.
For example, I put a collateral of PHP 10,000, and I borrow the Maximum Credit, what will happen to my collateral?
The collateral will be returned eventually, but this depends on the loan being fully repaid.
Here’s how it works:
1. Collateral Transfer: When the user provides collateral (e.g., 10,000 PHP), it gets transferred from the Spot Wallet to the Credit Wallet to secure the loan.
2. Collateral Lock: The collateral remains locked in the Credit Wallet as long as the loan is outstanding.
3. Collateral Return: Once the user repays the loan + interests in full, the remaining funds will be returned to the Credit Wallet.
The return of collateral is tied to the successful repayment of the loan. If there is any balance left or if the user hasn’t repaid the loan, the collateral will remain locked. So yes, the collateral will be returned as long as the loan is paid off first.
Please note: User can transfer funds to their spot wallet including their collateral base from transferable amount in Max. transferable qty column on their portfolio tab. Be advised this will affect RISK RATE (= Credit Wallet assets/ Total Liabilities).
Will the collateral be returned in full, or will it depend on the status of the market?
Provided the hourly Interest and Processing Fees, there are chances the collateral may not be returned as a whole (if not traded/ no gains from trading borrowed assets).
How do you compute the interest rate of borrowed assets?
Interest on the loan shall accrue hourly from the moment the loan proceeds are credited to the borrower's Credit Wallet. The interest rate is fixed at 0.008% per hour for Bitcoin-collateralized loans and 0.005% per hour for PHP-collateralized loans. Interest shall be compounded hourly for the purposes of repayment calculation.
PHP is on a limited-time promo rate of 0.001% until 02/28/2025 3:00PM PHT.
How do I pay my loan?
You can easily repay your liabilities in 2 ways:
- Direct Repay: Pay with your Credit Wallet balance.
- Transfer & Repay: Funds from your Spot Wallet balance will be transferred to your Credit Wallet to repay your liabilities.
How many months do I need to re-pay, and to renew crypto credit loan if I paid in full when refreshing a good credit limit?
No installment terms and no due dates applicable. Just observe the hourly Interest Rate which would be added to your total loan, and ensure your Liquidity Rate stays above the 10% threshold to avoid forced liquidation.
How to trade using my loan?
Proceed to the Trade panel on the Credit tab of the Coins website.
Select from the Crypto on Credit pairs available in the drop-down menu. At the moment, BTCPHP would be available, adding more in the coming months.
What are the available tokens for Crypto on Credit, and will ETH be included?
Crypto on Credit currently supports borrowing BTC and PHP only, and ETH will be available by February on Crypto on Credit. SOL toke will be included as well in the future.
What does the liquidation rate mean?
The liquidation rate is when your credit wallet is at risk of liquidation if your collateral's value is too low to cover your liabilities.
Can the loan be withdrawn or transferred to my Spot Wallet? What exactly is the purpose of the loan in Crypto on Credit?
Loan from Credit Wallet may not be transferred, but you may use them to trade - Buy Long or Short, on the Trade panel of the Credit tab on the Coins website.
However, users always have the option to transfer balances from your Credit wallet (depending on the maximum available on the Max. transferable qty column). Please be advised that this may affect your Risk Rate.
How to transfer/withdraw Crypto on Credit proceeds to other eWallets?
To transfer gains or proceeds from trading borrowed assets to external wallets (cryptocurrency or PHP), you would first need to transfer your assets from the Crypto wallet to the Spot wallet. From there, you may Cash out your peso funds or Withdraw your crypto.
As some of your borrowed assets are locked as collateral, you may not be able to transfer your Credit wallet balances to some extent.
Can you tell me a short background on what 'Crypto on Credit' was about, under 'BPC Lending Incorporated' with your crypto partnership with 'Coins.ph'?
Crypto on Credit allows users to trade Philippine Peso or Bitcoin with borrowed credit. This means you can use this product to expand your capital and trade at higher volumes. BPC Lending Inc. is our credit partner for trading crypto using credit.
What are the benefits for this new lending feature with expected installment terms like loan interest percentage?
Crypto on Credit gives you a way to maximize on your trading strategies by extending your trading funds and increasing your potential profits. You can trade crypto with additional loans with our loan partner, BPC Lending Inc.
Is it only on the Coins website, in the Coins app or both?
Transactions can only be done on the Coins website; balances may be checked however on the Coins app.
TRUE or FALSE?: 'Crypto on Credit' is available for the Level 'Enhance Verification', before making it eligible to enroll and apply the new lending feature.
As of January 24, 2025, all users with ID and Selfie Verification are eligible to use our Crypto on Credit service.
What are your messages for the 'Coins.ph' users who are willing to avail the new lending product of 'Crypto on Credit' for selected individuals?
Designed to elevate our community's trading experience, this feature allows our users to enhance their trading funds and boost potential profits.