A fixed-rate crypto loan allows you to borrow funds while keeping ownership of your cryptocurrency. Instead of selling your crypto, you temporarily lock it as collateral and receive funds you can use immediately.
On BtcTurk | Global, users can borrow USDT by depositing Bitcoin (BTC) as collateral.
The loan has a fixed interest rate and a predetermined duration, giving borrowers predictable repayment conditions.
This type of loan is designed for users who want clear costs, defined timelines, and protection from changing interest rates, while maintaining exposure to potential future price movements in Bitcoin.
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How Crypto Loans Work
A crypto loan allows you to borrow funds by locking your cryptocurrency as collateral. The borrowed amount is called the principal, and it must be repaid together with interest.
Instead of selling your assets, borrowing allows you to access liquidity while maintaining exposure to potential price increases.
On BtcTurk | Global, you can borrow USDT using BTC as collateral. All loans on the platform are fixed-rate, giving you predictable repayment terms.
Your BTC remains yours during the loan period. It is simply locked as collateral until the loan is fully repaid.
Understanding Your Loan Cost
When opening a loan, several key values determine the total borrowing cost.
Principal Amount (Borrow Amount)
The principal amount is the total USDT you borrow from the platform. This represents the size of your loan.
Fixed Interest Rate
Fixed loans have a predetermined upfront interest rate that remains constant throughout the loan term. Even if market borrowing rates change, your interest cost stays the same.
Interest Amount
The interest amount is the cost of borrowing funds. It is calculated based on the principal amount, the fixed interest rate, and the loan term using the ACT/365 day count convention.
Interest Amount = Principal Amount x Interest Rate x (Actual Days / 365)
- ACT = Actual number of days the loan is received.
- 365 = The number of days assumed in a year.
For example, if you borrow 1,000 USDT at a 10% APR for 30 days:
Interest = 1,000 × 10% × (30 / 365) ≈ 8.22 USDT
Because the rate is fixed, the total borrowing cost can be estimated in advance.
Total Debt
Total debt represents the full amount that must be repaid to close the loan.
Total Debt = Principal Amount + Interest Amount
Collateral and Loan Limits
Crypto loans require collateral to secure the borrowed funds.
On BtcTurk | Global, Bitcoin (BTC) is the only accepted collateral asset.
Collateral Amount
The collateral amount refers to the quantity of BTC locked to secure the loan.
Total Collateral Value
The total collateral value represents the current market value of your BTC collateral. This value is calculated using the platform’s index price.
Loan Amount Limits
Loans may have minimum and maximum borrowing limits to ensure safe collateralization.
The amount you can borrow depends on:
- Your BTC collateral amount
- The platform’s allowed Loan-to-Value (LTV) ratio
Loan Duration
Fixed loans operate within a predefined timeframe.
Loan Term
The loan term is the period during which the loan remains active. On BtcTurk | Global, loan durations are 7, 14, 30, 60, or 90 days.
Because the term is fixed, borrowers know exactly how long they have before repayment is required.
Loan Due Date
The loan due date is the exact time by which the loan must be repaid.
If the loan remains unpaid at maturity, the system may automatically close the position using the collateral.
Understanding LTV, Margin Calls, and Liquidation
Crypto markets are volatile, so loan platforms monitor risk using several key metrics.
What Is Loan-to-Value (LTV)?
The Loan-to-Value ratio (LTV) measures the relationship between the borrowed amount and the value of the collateral.
LTV = Loan Amount / Collateral Value
- Loan Amount: Total borrowed funds
- Collateral Value: Market value of locked BTC
A lower LTV indicates a safer position, while a higher LTV increases liquidation risk.
Initial LTV
The initial LTV is the ratio when the loan is first opened. It reflects the starting risk level of the loan. The typical initial LTV is 65% on BtcTurk | Global.
Current LTV
The current LTV updates continuously based on BTC price movements and the growing loan balance.
If Bitcoin’s price falls or the total debt increases over time, the LTV rises, which could trigger a margin call or liquidation if it reaches critical levels.
The current LTV is updated every 1 second, reflecting real-time BTC price movements and accrued interest.
Margin Call LTV
A margin call occurs when your LTV reaches 80%, the warning threshold. At this stage, borrowers receive a notification that the loan is becoming risky. To reduce risk, you can add more BTC collateral or repay part of the loan.
Liquidation LTV
The Liquidation LTV is the critical threshold at which the platform automatically closes your loan to prevent it from becoming undercollateralized. If your LTV reaches 95%, your entire position will be fully liquidated. If the collateral value exceeds the outstanding debt after liquidation, the remaining amount will be returned to the user. Also 2% liquidation fee is applied to the remaining debt, which is collected into the platform’s insurance fund to cover risks and maintain system stability.
Liquidation Price
The liquidation price is the BTC price level at which your loan reaches the liquidation threshold. If this price is reached and no action is taken, the platform will fully liquidate your position to repay the loan.
Index Price
The index price is the reference price used to determine the market value of BTC collateral.
BtcTurk | Global calculates the index price using BTC prices from multiple major exchanges, including BtcTurk, Binance, Kraken, OKX, and Bybit.
Using multiple price sources helps reduce the impact of sudden price spikes or anomalies on a single exchange and provides a more stable valuation of collateral.
Liquidation Scenarios
Liquidation may occur in several situations.
1. Liquidation Due to Market Price Movements
If the BTC price drops significantly, the LTV may reach the liquidation threshold, triggering automatic liquidation.
2. Liquidation at Loan Maturity
If the loan is not repaid by the due date, the system may close the loan using the collateral.
3. Repayment Using Collateral
Borrowers may also choose to repay using BTC collateral instead of USDT. In this case, part of the collateral is liquidated to close the loan, and a 2% liquidation fee will apply.
Managing Your Loan
Borrowers can actively manage their loan position to reduce risk.
Adjusting Collateral
Borrowers can add more BTC to their loan at any time to reduce their LTV and make their position safer. However, existing collateral cannot be withdrawn while the loan is active.
Repayment Options
Loans can be repaid using two different methods.
Pay with USDT
When repaying with USDT on BtcTurk | Global:
- Partial repayment is allowed
- Full repayment is allowed
Once the loan is fully repaid, the collateral is released.
Pay with Collateral
Borrowers may also choose to repay using BTC collateral.
In this case:
- The loan must be fully repaid
- A 2% liquidation fee will apply.
Net Equity (Net Total Value)
Net equity represents the remaining value of your collateral after subtracting your loan and accrued interest.
This shows how much of your BTC’s value you actually keep while the loan is active.
How to Borrow on BtcTurk | Global
Opening a loan position is designed to be straightforward.
The basic process works as follows:
- Deposit BTC as collateral
- Choose the USDT amount you want to borrow
- Review LTV, interest rate, and loan duration
- Confirm the loan
- Receive USDT instantly in your wallet
Once the loan is active, you can monitor your position and manage risk by adding collateral or repaying part of the loan.
Things to Consider Before Borrowing
Although fixed loans are simple to use, they still require careful risk management.
Before borrowing, consider the following:
- Monitor your LTV regularly
- Follow BTC market price movements
- Plan your repayment before maturity
- Maintain a safe collateral buffer to manage volatility
Conclusion
A fixed crypto loan allows you to unlock liquidity without selling your Bitcoin while maintaining predictable borrowing costs.
Because both the interest rate and loan duration are predetermined, fixed loans offer clarity and stability in a volatile market.
By understanding key concepts such as LTV, collateral value, margin calls, and liquidation, borrowers can manage risk effectively while accessing immediate liquidity.
Ready to borrow? Open the Borrow page on BtcTurk | Global and access USDT using your BTC in just a few steps!