2024-02-05 17:01:51Bybit has replaced the current fixed interest rate system with a floating interest rate system. This allows us to ensure that our interest rates always reflect current market conditions.
This floating interest rate system will be applicable to our loan services such as Spot Margin Trading, Crypto Loans, and Unified Trading.
How are interest rates derived?
The borrowing interest rates are derived from the capital utilization rate, which is an indicator of the availability of capital in the asset pool for loans, based on the following model:
If Capital Utilization Rate < Capital Utilization Rate Threshold：
Annual Borrow Interest Rate = Base Annual Interest Rate + (Capital Utilization Rate/Capital Utilization Rate Threshold) × Variable Rate Slope 1
If Capital Utilization Rate ≥ Capital Utilization Rate Threshold:
Annual Borrow Interest Rate = Base Annual Interest Rate + Variable Rate Slope 1 + (Capital Utilization Rate - Capital Utilization Rate Threshold) / (1 - Capital Utilization Rate Threshold) × Variable Rate Slope 2
The capital utilization rate threshold, base annual interest rate and variable rate slope stated above are all fixed values and will be reviewed periodically according to market conditions, while the capital utilization rate will be calculated based on real-time lending conditions.
Capital Utilization Rate = Loaned Assets / Total Asset Pool × 100%
How often are interest rates updated?
Borrowing interest rates will be updated every 10 minutes based on current market conditions.
How is the interest charged?
Formula: Interest Payment = Amount to Borrow × Hourly Interest Rate
The interest charge remains unchanged. Interest will be accrued immediately and once every hour after you’ve successfully borrowed funds. The interest is calculated according to the actual borrowing hours and the interest rate displayed when borrowing.
For users who have upgraded to a Unified Trading Account, no interest will be incurred if the amount borrowed is within the interest-free range of the asset. If the borrowed amount exceeds the interest-free amount range, interest will be charged on all liabilities and interest payments will be made hourly. The system will automatically calculate and charge interest five (5) minutes after each hour, such as 8:05AM UTC and 9:05AM UTC, etc.
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How will I be impacted?
Given that interest rates may fluctuate according to market conditions, we strongly recommend users closely monitor applicable interest rates and LTV levels or account Maintenance Margin rates to avoid any potential liquidation due to large interest rate fluctuations and/or interest accruing over time.
Where can I find the latest interest rates?
All interest rates applicable on Bybit can be found under Lendings and Borrowings on the Bybit Market Overview page but there is also a direct access to this data from the product pages.
For Spot Margin Trading, please click on Trading Guide → Margin Data to view the latest interest rates. For better interest rate, please refer to the different VIP levels. You can also view the interest rates for different VIP levels.
For Crypto Loans, traders will be able to see hourly and annual interest rates from the Crypto Loans page and consult the fixed interest rates for each coin from this page.
For Unified Trading Account users, please log in to your Unified Trading Account and go to Unified Trading Account → Borrow History. You will be able to see your hourly interest rate and the details of your borrowing.
Alternatively, you can go to the Spot Margin Trading page of your Unified Trading Account, and click on Trading Guide → Margin Data to view the latest interest rate.
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