Summary
- Upbit announced the official launch of 'CoinBorrow', a bitcoin-backed loan service.
- The loan limit is 20~80% of the collateral, and if the value of the collateral exceeds 92%, forced repayment will be triggered.
- The application fee is 0.05%, the usage fee is 0.01% every 8 hours, and a 1.5% fee is charged in the case of forced repayment.
Upbit, a domestic virtual asset (cryptocurrency) exchange, announced on the 4th that it has officially launched the 'CoinBorrow' service, which allows users to borrow assets using Bitcoin as collateral.
This service is designed so that investors can use their assets as collateral to take out digital asset loans, allowing them to respond more flexibly to volatility. Currently, only Bitcoin (BTC) is supported, and collateral can be set from a minimum of ₩100,000 up to ₩50,000,000. The available loan amount ranges from 20% to 80% of the collateral.
The initial repayment period is 30 days, and if the loan-to-value ratio of the collateral asset exceeds 92%, the system will automatically trigger forced repayment. The application fee is 0.05%, and the usage fee is charged at 0.01% every 8 hours. In the event of forced repayment, a 1.5% fee will be incurred.
Upbit stated that it plans to gradually expand the supported assets in the future.
Minseung Kang
minriver@bloomingbit.ioBlockchain journalist | Writer of Trade Now & Altcoin Now, must-read content for investors.
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