Are you a Coins.ph user diving into the world of Crypto on Credit? You might encounter a situation where you can't transfer your borrowed assets from your Credit Wallet back to your Spot Wallet. Learn about the limitations of transferring borrowed assets on Coins.ph's Crypto on Credit feature for effective portfolio management.
Understanding the Credit Wallet Ecosystem
Before we delve into the reasons for transfer limitations, let's clarify the roles of the Spot and Credit Wallets:
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Spot Wallet:
Your primary Coins.ph wallet for storing, buying, and selling cryptocurrencies, and managing PHP. It's used for everyday transactions like paying bills or buying load.
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Credit Wallet:
This wallet is specifically designed for the Crypto on Credit feature. It isolates funds used for credit trading from your Spot Wallet, holding collateral and borrowed assets.
Coins Website - Spot Wallet |
Coins Website - Credit Wallet |
Easy Transfers To and From Spot Wallet
Transfers from Spot to Credit Wallet
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.
Step 1: Click “Increase Credit”
First, head on over to the Credit tab. If you are just starting with Crypto on Credit or the maximum credit amount is not enough for your trade, you can click the “Increase credit” button.
This will open the Increase Credit pop-up window to indicate your transfer details.
Step 2: Select collateral asset
Choose which asset you want to transfer as collateral from your Spot wallet.
Step 3: Input collateral amount
Under Amount, input how much of your collateral asset you want to transfer from Spot Wallet. Below this, you would see your available balance of the chosen asset in your Spot Wallet. In case of insufficient balance, click the “Add Asset” button to make a deposit or cash in.
In case of insufficient balance, click the “Add Asset” button to make a deposit or cash in.
Transfers from Credit to Spot Wallet
From your Portfolio, select the Credit tab to see your Credit balance. You can then click the Transfer tab.
This will open the Transfer pop-up window to indicate your transfer details. Make sure to set it as From Credit To Spot.
Step1: Select asset
Choose which asset you want to transfer from your Credit wallet to Spot Wallet.
Step 2: Input amount
Under amount, input how much of your asset you want to transfer from Credit Wallet to Spot Wallet. If it shows insufficient balance and your available amount is 0, you cannot transfer this asset to your Spot Wallet. Insufficient balance means that your transferable amount is insufficient.
Please note that although your credit wallet has a balance, your Max transferable qty is likely to be 0. This means that you cannot transfer funds out at this time. It is due to the platform’s risk management mechanisms activating asset protection rules.
What is Max Transferable Qty (Quantity)
Max transferable qty is the maximum amount you can transfer from your credit wallet to your spot wallet, which is automatically calculated by the system. Your transfer amount cannot exceed this number.
Why is Max Transferable Qty 0 if I have Balance on my Credit Wallet?
Your total credit balance is determined by 「Total Net Asset」 and 「Total Liability」. Even if your account shows a balance, transfer may be restricted for the following reasons:
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Liabilities Exceed Net Assets
If your borrowed funds (liabilities) are close to or exceed the net assets value, the system restricts transfer to prioritize repayment security.
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Impact of Haircut
Due to the high volatility of the market, your total credit balance is valued at a haircut. Haircut is the platform's discount rate on the value of your collateral assets (your credit wallet balance) and may vary.
Example: If you collateralize 1,000 PHP and the Haircut is 90%, the platform will treat it as 900 PHP to calculate the amount that can be borrowed or transferred. This is to buffer the risk of market fluctuations and ensure that your borrowing or operations always have enough safety cushion.
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Liquidation Rules
The system ensures that after transfer, your account can still cover liabilities to avoid liquidation.
Your maximum transfer amount must satisfy the following formula:
- Max Withdrawable Value (PHP) = Total Net Asset - Total Liability
- Total Net Asset = (Total Credit Balance × Haircut) - Total Liability
Example:
Your credit account holds 100,000 PHP (90% haircut) with a 50,000 PHP liability:
Total Net Asset = (100,000 × 90%) - 50,000 = 40,000 PHP
Max Withdrawable PHP = 40,000 - 50,000 = 0 PHP
In this example, since the Max Withdrawable amount is 0, this is why transferring from Credit wallet to Spot wallet will not be possible.
How to Check Your Max. transferable qty
To understand your current transfer capabilities:
- Navigate to the Portfolio tab
- Select the Credit section
- Review the Max. transferable qty column
- Consider your current Risk Rate before making transfers
Recommended Actions If You Cannot Transfer Funds from Credit to Spot Wallet
Kindly reduce Liabilities to increase net assets.
Step 1: Go to the Credit Tab and click Repay
This will open a pop-up window where you may adjust your Repayment details.
Step 2: Select Repay Method
You can easily reduce your liabilities in 2 ways: directly repay part of your borrowed funds or transfer more assets from your spot wallet.
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Direct Repay: Pay with your Credit Wallet balance.
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Transfer & Repay: Funds from your Spot Wallet balance will be transferred to your Credit Wallet to repay your liabilities.
Step 3: Select Repay Asset
Select which of the borrowed assets you want to repay and transfer out.
Step 4: Input Repay amount
For each borrowed asset selected, your Total Liabilities will be indicated. You can also see your Available balance. The Available balance is the amount of funds you can transfer out.
- Through Direct Repay method, this will show your chosen asset’s total balance on Credit Wallet.
- Through Transfer & Repay method, it will show the total available balance of the chosen asset in Spot Wallet.
Once you input your Repay Amount, a breakdown of the interest and borrowed amount will be shown to you. After you click Confirm, a successful repayment will then improve your risk ratio which would decrease risk of liquidation of your Credit Wallet assets.
Frequently Asked Questions
What happens if I try to transfer more than the allowed amount?
The system will prevent transfers exceeding your maximum transferable quantity to protect your account.
Can I increase my Max. transferable qty limits?
Yes, you can increase transfer limits by either adding more collateral or reducing your borrowed assets.
What should I do if I need to transfer more than my Max. transferable qty limit?
Consider either repaying part of your loan or adding more collateral to increase your transfer limit.