/cryptocurrency

News and resources on digital currencies, crypto assets and crypto exchanges worldwide.

Bitfinex Borrow lets users take out a crypto loan

Source: Bitfinex

Bitfinex, a state-of-the-art digital token trading platform, has launched Bitfinex Borrow, a peer-to-peer (P2P) digital token loan portal providing a seamless interface for users to borrow.

 

Bitfinex Borrow enables borrowers to use their bitcoin or Ethereum holdings as collateral to obtain a loan in either Tether (USDt) tokens or US Dollars (USD).

“Bitfinex Borrow is an intuitive and user-friendly service that will facilitate responsible borrowing, with the taking out of personal and corporate loans from our highly liquid peer-to-peer lending markets,” said Paolo Ardoino, CTO at Bitfinex. “We launched this service after carefully considering the needs of our sophisticated and growing customer base.”

Borrowers can choose between a variable interest rate based upon the Flash Return Rate (FRR) or a fixed-rate loan. The annual and daily interest rates, as well as total lending and repayment amounts, are automatically calculated by Bitfinex Borrow based on the amount of digital tokeny put down as collateral, loan amount, borrowing period and preferred interest rate option. Borrowing rates vary from about 5.5% Annual Percentage Rate (APR) to about 18.25% APR*.

Users can make a partial or full repayment on both the principal and interest of the loan by moving funds back into their Margin wallet, thereby reducing their daily interest rate. Users will have to manage their own risk of fluctuating bitcoin or Ethereum prices.

While fully verified users will have full access to Bitfinex Borrow, users verified at the intermediate level will not be able to withdraw the borrowed funds from the platform.  

Comments: (0)