You cannot use another token to repay a loan. Interest Calculation: Lending hourly interest rates are calculated dynamically each hour based on capital and liquidity conditions. When repaying a loan, ensure that the margin account has a sufficient amount of the corresponding tokens. The borrower can choose to manually repay loans at any time before the due date. Interest is also calculated and paid each hour. For example, USDT liabilities must be repaid in USDT, while BTC liabilities must be repaid in BTC. Auto Repay: The auto-repay function is optimized so that once the user sells assets via the auto-repay function, the assets received will be used to repay the liabilities only if there are any corresponding liabilities. Interest is calculated on an hourly basis in accordance with the actual usage time. You can view cross and isolated liabilities through the Margin Account page.

Using BTC/USDT as an example, if the user believes the BTC is about to rise, they can go long by borrowing USDT to buy BTC. Once BTC rises, they sell their BTC and repay their USDT liabilities, with the remaining assets serving as their profit. Selling Short: Sell high and buy low, profiting when the market falls. Using BTC/USDT as an example, if the user believes the BTC is about to fall, they can go short by borrowing BTC to sell.

Only the two coins corresponding to the trading pair can be transferred, held, or borrowed in a specific isolated margin account. Isolated margin currently supports up to 10x leverage. However, the maximum leverage also differs depending on the trading pair. The advantage of isolated margin is the isolation of risk. Any risks of liquidation will not influence other isolated margin accounts. Cross margin involves a shared account and risk, while isolated margin maintains separate accounts for each trading pair, isolating risks and calculations.

Seasoned traders could use assets as collateral to borrow funds.

What is Crypto Margin Trading? Whether you’re going long (buying) or short (selling), you should do due diligence and understand the pros and cons of margin trading. The KuCoin margin trading platform supports cross margin and isolated margin modes. Seasoned traders could use assets as collateral to borrow funds. Open larger positions than they could with their capital alone. Cross margin means that all assets (regardless of type) in the margin account will be used as collateral to improve capital utilization and prevent liquidation. Margin trading can increase profits from successful trades but also comes with heightened risks as losses can be amplified. KuCoin Margin trading allows eligible users to borrow funds to amplify their profits. 6. Is Margin Trading Right for You?

When the debt ratio in the margin account reaches the Debt Ratio of Forced Liquidation (97%), forced liquidation is triggered. Account notification if you open the app or website version account. If there are residual balances, one small part of fees (about 1% of the total positions’ value) will be charged to protect against the risks of negative balances; the others will be returned to users’ accounts in USDT or liquidated tokens. After the forced liquidation, the system will take over the positions to close and repay the debts. C. No token can be transferred into the margin account during the period when the margin account is operating force liquidation. Please pay attention to the risks of Margin trading and adjust the positions in time to avoid losses and risks.