Are you managing multiple liabilities on Coins.ph's Crypto on Credit platform? Juggling repayments across different cryptocurrencies can be time-consuming and prone to errors. That's where the One-Click Prepayment feature comes in – a powerful tool designed to streamline your loan management process and help you maintain a healthy risk ratio.
What is One-Click Prepayment?
One-Click Prepayment allows you to settle all your outstanding crypto debts across multiple currencies with a single action.
This innovative feature offers several key benefits:
- Automated Prioritization: The system intelligently handles your repayments by addressing interest first, then principal, following best financial practices.
- Multi-Wallet Integration: It can draw funds from both your Credit Wallet and Spot Wallet (when enabled) to maximize repayment efficiency.
- Time-Saving: What would normally require multiple manual transactions is reduced to a single click.
- Risk Rate Management: Helps maintain your risk rate (Credit Wallet assets / Total Liabilities) above the 10% threshold to avoid forced liquidation.
This streamlined approach to debt management ensures you can maintain a healthy borrowing profile while saving valuable time and reducing complexity.
How to Use One-Click Prepayment
Step 1: Locate the Repayment Button
Navigate to your portfolio page where you'll find the new Repay all button prominently displayed. This is your gateway to simplified loan management.
Step 2: Review Your Liabilities
After clicking the button, a comprehensive pop-up window will appear showing:
- All assets with outstanding liabilities
- Available fund sources for repayment
- Current interest and principal amounts
Auto-Transfer Setting
The Auto-transfer toggle is a crucial feature that determines which funds will be used:
When Enabled:
- Total available funds combine both Credit Wallet and Spot Wallet assets
- The display shows you exactly how much will be drawn from each wallet
- You'll see a breakdown of borrowed amounts and accrued interest
For example, if you owe 0.00001034 BTC in liabilities and 0.00000524 BTC in interest (totaling 0.00001558 BTC), the system will check both wallets for available funds. Even with an empty Credit Wallet, if your Spot Wallet contains sufficient BTC, your debt can be fully repaid.
When Disabled:
- Only Credit Wallet funds will be used for repayment
- If Credit Wallet funds are insufficient, complete repayment won't be possible
- You'll need to manually fund your Credit Wallet to proceed
Step 3: Confirm and Complete
Click the "Confirm" button to review your final repayment details, including:
- Which assets are being repaid
- Status of each repayment
- Any remaining unpaid amounts
If you have unpaid balances remaining, you'll need to either deposit additional funds or make trades to increase your wallet balances.
How Does One-Click Repayment Work?
Here are 2 example scenarios:
Case 1: Auto-Transfer Enabled
- Credit Wallet balance: 500 PHP
- Spot Wallet balance: 300 PHP
- Interest owed: 200 PHP
- Principal owed: 400 PHP
Process:
- Total Balance = 500 (Credit) + 300 (Spot) = 800 PHP.
- Repay Interest > 200 PHP; Remaining balance = 600 PHP.
- Repay Principal > 400 PHP; Remaining balance = 200 PHP.
Summary
- Initial - Remaining Balance = 800 - 200 = 600 PHP.
- Since difference (600 PHP) > Credit Wallet balance(500 PHP):
- Credit balance used: 500
- Spot balance used: 100
Case 2: Auto-Transfer Disabled
- Credit Wallet balance: 500 PHP
- Spot Wallet balance: 300 PHP
- Interest owed: 600 PHP
- Principal owed: 400 PHP
Process:
- Total balance = 500 PHP (Credit wallet only)
- Repay interest > 500 PHP (partial); Remaining interest owed = 100 PHP
- Process stops. Principal repayment does not occur.
Frequently Asked Questions
Can I repay a loan in a different currency?
No. The One-Click Prepayment feature requires you to repay loans in the same currency as your borrowed assets. For example, if you borrowed BTC, you must repay using BTC. If you lack the borrowed currency, you’ll need to manually deposit funds or make a trade.
What happens if I don’t have enough funds to repay all debts?
The system prioritizes interest repayment first. Any remaining debt will stay on your credit account.
What if I repay more than I owe?
The system only deducts the exact amount needed.