Binance has launched a 30-day bitcoin-backed loan offering up to 1,000 USDT, with no price-triggered liquidation during the initial term. A promotional 0.5% service fee remains available through Sept. 3.
Key Takeaways
Users can borrow up to 1,000 USDT against eligible BTC collateral.The initial 30-day term carries no price-triggered liquidation.Overdue balances face 36% annual penalty interest and liquidation risks.The exchange stated:
“Borrowed funds are available immediately and can be used both on and off the Binance platform.”
Borrowers pay a nonrefundable service fee deducted from the loan amount when funds are issued, with no additional interest charged during the initial 30-day term. The promotional rate is 0.5% for orders completed from Aug. 4 at 10:00 UTC through Sept. 3 at 09:59 UTC, before returning to 1%.
Collateral Continues Earning Yield During the LoanThe company added:
“No complex LTV monitoring, no price-triggered liquidation during the initial 30-day Loan Term, and your collateral keeps earning yield throughout the loan term.”
Overdue Loans Face Penalties and Liquidation RulesAfter expiration, Binance applies daily penalty interest at a fixed simple annual rate of 36% to the outstanding balance. The exchange sends a margin-call notification when loan-to-value reaches 85%, while liquidation begins at 91% or after the balance remains overdue for 30 days, whichever occurs first.
Liquidation uses the position’s collateral to repay the entire loan, with Binance currently setting the liquidation fee at 0%. The exchange may restore the standard 2% fee and apply a risk-based adjustment to each collateral asset’s market value during the liquidation process.
Early and partial repayments are available without additional charges, using USDT or other eligible crypto assets. Across Binance Loans, collateral requirements, borrowing limits, repayment schedules, and loan-to-value calculations vary according to the selected product.
Bitcoin-Backed Lending Continues to Expand
