Have you leveraged Coins.ph's Crypto on Credit feature to amplify your trading potential? Understanding how to repay your liabilities is crucial for managing your risk and ensuring a smooth trading experience.
Key Components:
- Spot Wallet: Your initial wallet holding your main funds (PHP and cryptocurrency).
- Credit Wallet: A dedicated wallet for borrowed assets and collateral related to Crypto on Credit.
- Collateral: Funds secured for your loan, transferred from your Spot Wallet to your Credit Wallet to secure your loan.
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Important Considerations:
- Coins.ph offers a flexible repayment system with no fixed installment terms or due dates. However, you'll need to monitor the hourly interest rates and maintain a healthy liquidity rate to protect your collateral.
- Interest accrues hourly on borrowed assets. (Fixed at 0.008% per hour for Bitcoin-collateralized loans and 0.005% per hour for PHP-collateralized loans.)
Note: PHP may have reduced rates during promotional periods.
- Maintaining a Liquidity Rate above 10% is crucial to avoid forced liquidation of your Credit Wallet assets. Your RISK RATE (= Credit Wallet assets/ Total Liabilities) will be affected if you transfer funds from your spot wallet including your collateral base from a transferable amount in Max. transferable qty column on your Portfolio Tab.
Step-by-Step Guide to Repaying Your Crypto on Credit
Coins.ph offers two convenient methods for repaying your Crypto on Credit liabilities:
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Direct Repay:
Use the existing balance in your Credit Wallet to settle your debt.
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Transfer & Repay:
Transfer funds from your Spot Wallet to your Credit Wallet and then use them to repay.
Here’s how to execute the repayment:
1. Head to Crypto Tab: On the Coins Website, head to the Credit tab on the left panel. Transactions not yet available on the Coins app.
2. Proceed to Repay tab: On the Credit tab, click the Repay button.
3. Select Repay Method: Choose either Direct Repay or Transfer & Repay based on where your funds are located.
4. Select Repay Asset: Indicate which of the borrowed assets you intend to repay (Note: You can repay only with the corresponding borrowed asset (borrowed BTC can be repaid with BTC).
5. Input Repay Amount:
- Carefully enter the amount you wish to repay.
- The platform will display your Total Liabilities for the selected asset.
- You'll also see your Available balance. Shows the total balance of the chosen asset in your Credit Wallet.
6. Confirm Repayment:
- Review the breakdown of the interest and borrowed amount.
- Click Confirm to finalize the repayment.
- Upon successful repayment, your risk ratio improves, reducing the likelihood of liquidation of your Credit Wallet assets.
Managing Your Collateral
Understanding how collateral works is crucial for successful credit management:
- Your collateral remains in the Credit Wallet until the loan is fully repaid
- The system allows transfers to your Spot Wallet based on the Maximum Transferable Quantity column on Portfolio - Credit tab.
Frequently Asked Questions
Will my collateral be returned in full?
The return amount depends on several factors, including accrued interest and processing fees. If you haven't generated trading gains from borrowed assets, you might receive less than your initial collateral.
Is there a fixed repayment term?
No, Coins.ph doesn't impose fixed installment terms or due dates. However, you must maintain appropriate risk ratios and consider the accumulating hourly interest.
How do I check my current loan status?
You can view your loan status, including total liabilities and risk rate, in your Credit Wallet portfolio tab.
Can I transfer my collateral while I have an active loan?
Yes, but only within the maximum transferable quantity shown in your Portfolio tab. Remember that this affects your risk rate.
What happens if I don't maintain the required risk rate?
If your risk rate falls below the 10% threshold, your assets may be subject to forced liquidation to protect the platform.