Gate.io Launched 0% Interest Mixed Collateral for USDT Perpetual Contract Trading

gateIssued on 2020/06/02 19:06    Content based on the original text . Link
To improve users’ trading experience, Gate.io has introduced a mixed collateral feature for trading USDT perpetual contracts.

With the mixed collateral feature, users are able to borrow up to 100,000 USDT for contract trading using BTC in their spot account as collateral, with no interest required. The collateral amount of BTC will be deducted from the user’s spot account automatically, without it being necessary to sell any BTC or transfer the BTC to the perpetual contract account. Meanwhile, the assets which are borrowed via mixed collateral cannot be withdrawn. Currently, mixed collateral is only available for Web users. Mobile App users will gain access to this service soon!

This “mixed collateral” feature enables traders to trade futures using crypto assets in their spot account as collateral, thus mitigating the risk of their position being liquidated forcefully. There is no kind of “interest” involved as no real borrowing takes place. However, when the loan to value (LTV) ratio reaches the threshold, the position will be liquidated forcefully (no matter if there are sufficient funds in the perpetual contract account or not). So please ensure there is a sufficient amount for the collateral currency and top up the collateral as the LTV ratio surges.

Note: LTV ratio = value of the borrowed amount/value of the collateral amount; generally, a high LTV ratio indicates a high financial risk.

How to Borrow USDT with a Mixed Collateral

1. Head over to the Gate.io Perpetual Contract trading interface via Gate.io HODL & Earn Launches 6th Round of the 7th-Anniversary EOS Lock-up & Earn, Annual Interest Rate 10%
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