Have you been leveraging the Crypto on Credit feature on Coins.ph to boost your trading, but are now facing issues when trying to repay your liabilities using your Credit Wallet balance? Understanding the limitations of repaying your borrowed assets below to resolve it.
Understanding Crypto on Credit Repay
The main reason you might be unable to repay with your available Credit Wallet balance is due to the asset-specific repayment requirement. You can only repay borrowed assets with the exact same type of asset. For example:
- If your borrowed assets are in Bitcoin (BTC), you must repay with BTC
- If you borrowed PHP, you must repay with PHP
In the example below, you can see a Total Credit Balance of P561.11, amounting to the Total Net Assets of P122.06 and Total Liabilities of P438.32.
Given the above, the Total Credit Balance of P561.11 should be able to cover the Total Liabilities of P438.32, right? However, when we head to the Repay section of the Credit tab, only P15 is on the Available. Why is that?
This is because the Total Liabilities of P438.32 is in currency PHP (sum of Borrowed assets and Accrued Interests).
Only P15 of the Total Credit Balance - P561.11 is in currency PHP which could cover the Total Liabilities.
To proceed with the payment of the example loan, you may choose either
- Trade your BTC to PHP and Direct Repay, or
- Transfer & Repay from your PHP balance on the Spot Wallet
Trade your BTC to PHP and Direct Repay
1. Navigate to the Credit Tab: On the Coins.ph website, go to the Credit tab (transactions currently not available on Coins app).
2. Choose Your Desired Trading Pair: Under the Trade tab, select from the Crypto on Credit pair available in the drop-down menu.
3. Select SELL: Convert your available BTC to increase your PHP holdings. Enter the amount you want to Sell to cover your Borrowed PHP.
Ensure it meets the minimum (at least 0.0001) and maximum sell requirements.
**Trade More with Credit (Optional): If balance is currently insufficient, increase your Credit Wallet by clicking the Increase credit button.
4. Confirm Order: Click Sell on the Order Confirmation pop up. Your PHP balance should now be available on your Credit wallet to repay your loan.
5. Select Repay Asset: Select PHP or the borrowed assets you want to Repay.
6. Input Repay amount: Click Max, or set the amount of Liability you want to repay.
Once you input your Repay Amount, a breakdown of the interest and borrowed amount will be shown to you.
7. Click Confirm: Once satisfied with the breakdown, click Confirm. A successful repayment will then improve your risk ratio which would decrease risk of liquidation of your Credit Wallet assets, or increase the Max. Transferable Qty of any available asset.
Transfer & Repay from your PHP balance on the Spot Wallet
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 Transfer & Repay to access your Spot Wallet balance.
4. Select Repay Asset: Indicate PHP or the borrowed assets you intend to repay
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 which shows the total balance of the chosen asset in your Spot 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 or increasing the Max. Transferable Qty of any available asset.
Frequently Asked Questions
What happens if I don't have enough of the borrowed asset to repay?
You'll need to acquire the specific currency either through trading with borrowed assets or transfers to your Credit Wallet before repaying.
Can I convert assets within my Credit Wallet for repayment?
Yes, conversion within the Credit Wallet is available on the Trade tab.
Why can’t I proceed with the conversion on my Credit Wallet balance?
Ensure it meets the minimum (at least 0.0001) and maximum buy or sell requirements of the Trade tab.