Bithumb offers up to 4x leverage on held assets... Korea's first 'Coin Lending Service'

Bithumb has launched a 'Coin Lending Service' that supports higher leverage for virtual asset (cryptocurrency) lending than existing lending services. This service is operated by the partner company Blocktorial, which has been providing lending services, with Bithumb providing the platform.

'Coin Lending' is designed so that users can borrow up to 4 times the amount of the virtual assets or KRW they post as collateral, and utilize the borrowed crypto for investment. In a bull market, users can sell the borrowed cryptocurrency and reinvest for expanded opportunities. In a bear market, users can sell immediately after borrowing and later repurchase only the borrowed amount at a lower price to realize profits. This service allows profit opportunities in both bullish and bearish markets, offering a range of investment strategies to investors.

The minimum usage amount for coin lending is ₩100,000, and depending on membership level, up to ₩500,000,000 can be lent. Currently, 10 virtual assets known for liquidity and stability, including Tether (USDT), Bitcoin (BTC), Ethereum (ETH), and XRP, are eligible for lending, with plans to gradually expand depending on market conditions.

The maximum usage period is 30 days, with a daily fee of 0.05% of the borrowed quantity and a risk management fee of 1.00% applied for automatic repayment. Fees are charged by Blocktorial, the service operator, and may vary depending on partner policy.

Coin Lending provides various pre-procedures to ensure that customers can fully understand the service structure and investment risks in advance. Therefore, users must complete a 3-step process: △agreeing to the pre-terms △directly entering service terms △completing a quiz on the service; only after passing all steps can the service be used.

Risk management devices have also been deployed. If the value of the accepted collateral asset falls to 107% or less of the amount to be repaid, the system is designed for automatic repayment, preventing excessive loss in advance.

In addition, to minimize market shocks due to large-scale liquidation, a 'Domino Liquidation Prevention System' has been introduced. This system closely monitors abnormal price movements, and only proceeds with liquidation orders when no distortion or when the distortion has been resolved, thus temporarily controlling liquidation sales due to abnormal price flows and minimizing market impact.

A Bithumb representative stated, "We are introducing a new partnership service to enable users to devise more investment strategies in both bull and bear markets. Coin Lending is an advanced lending service that minimizes investment risks and protects investors by combining a technical liquidation prevention system with a pre-notification process. As a responsible platform, we will do our best to provide stable service operation."