<\/span><\/h1>\n\n\n\nA crypto loan allows you to borrow funds by locking your cryptocurrency as collateral. The borrowed amount is called the principal<\/strong>, and it must be repaid together with interest.<\/p>\n\n\n\nInstead of selling your assets, borrowing allows you to access liquidity while maintaining exposure to potential price increases.<\/strong><\/p>\n\n\n\nOn BtcTurk | Global, you can borrow USDT<\/strong> using BTC as collateral<\/strong>. All loans on the platform are fixed-rate, giving you predictable repayment terms.<\/p>\n\n\n\nYour BTC remains yours during the loan period. It is simply locked as collateral until the loan is fully repaid.<\/p>\n\n\n\n
<\/span>Understanding Your Loan Cost<\/span><\/h1>\n\n\n\nWhen opening a loan, several key values determine the total borrowing cost.<\/p>\n\n\n\n
<\/span>Principal Amount (Borrow Amount)<\/span><\/h2>\n\n\n\nThe principal amount is the total USDT you borrow from the platform. This represents the size of your loan.<\/p>\n\n\n\n
<\/span>Fixed Interest Rate<\/span><\/h2>\n\n\n\nFixed 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.<\/p>\n\n\n\n
<\/span>Interest Amount<\/span><\/h2>\n\n\n\nThe 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.<\/p>\n\n\n\n
Interest Amount = Principal Amount x Interest Rate x (Actual Days \/ 365)<\/p>\n\n\n\n
\n- ACT = Actual number of days the loan is received.<\/li>\n\n\n\n
- 365 = The number of days assumed in a year.<\/li>\n<\/ul>\n\n\n\n
For example, if you borrow 1,000 USDT at a 10% APR for 30 days:<\/p>\n\n\n\n
Interest = 1,000 \u00d7 10% \u00d7 (30 \/ 365) \u2248 8.22 USDT<\/p>\n\n\n\n
Because the rate is fixed, the total borrowing cost can be estimated in advance.<\/p>\n\n\n\n
<\/span>Total Debt<\/span><\/h2>\n\n\n\nTotal debt represents the full amount that must be repaid to close the loan.<\/p>\n\n\n\n
Total Debt = Principal Amount + Interest Amount<\/p>\n\n\n\n
<\/span>Collateral and Loan Limits<\/span><\/h1>\n\n\n\nCrypto loans require collateral to secure the borrowed funds.<\/p>\n\n\n\n
On BtcTurk | Global, Bitcoin (BTC) is the only accepted collateral asset.<\/strong><\/p>\n\n\n\n<\/span>Collateral Amount<\/span><\/h2>\n\n\n\nThe collateral amount refers to the quantity of BTC locked to secure the loan.<\/p>\n\n\n\n
<\/span>Total Collateral Value<\/span><\/h2>\n\n\n\nThe total collateral value represents the current market value of your BTC collateral. This value is calculated using the platform\u2019s index price.<\/strong><\/p>\n\n\n\n<\/span>Loan Amount Limits<\/span><\/h2>\n\n\n\nLoans may have minimum and maximum borrowing limits to ensure safe collateralization.<\/p>\n\n\n\n
The amount you can borrow depends on:<\/p>\n\n\n\n
\n- Your BTC collateral amount<\/strong><\/li>\n\n\n\n
- The platform\u2019s allowed Loan-to-Value (LTV) ratio<\/strong><\/li>\n<\/ul>\n\n\n\n
<\/span>Loan Duration<\/span><\/h1>\n\n\n\nFixed loans operate within a predefined timeframe.<\/p>\n\n\n\n
<\/span>Loan Term<\/span><\/h2>\n\n\n\nThe loan term is the period during which the loan remains active. On BtcTurk | Global, loan durations are 7, 14, 30, 60, or 90 days.<\/strong><\/p>\n\n\n\nBecause the term is fixed, borrowers know exactly how long they have before repayment is required.<\/p>\n\n\n\n
<\/span>Loan Due Date<\/span><\/h2>\n\n\n\nThe loan due date is the exact time by which the loan must be repaid.<\/p>\n\n\n\n
If the loan remains unpaid at maturity, the system may automatically close the position using the collateral.<\/strong><\/p>\n\n\n\n<\/span>Understanding LTV, Margin Calls, and Liquidation<\/span><\/h1>\n\n\n\nCrypto markets are volatile, so loan platforms monitor risk using several key metrics.<\/p>\n\n\n\n
<\/span>What Is Loan-to-Value (LTV)?<\/span><\/h2>\n\n\n\nThe Loan-to-Value ratio (LTV) measures the relationship between the borrowed amount and the value of the collateral.<\/p>\n\n\n\n
LTV = Loan Amount \/ Collateral Value<\/p>\n\n\n\n
\n- Loan Amount: Total borrowed funds<\/li>\n\n\n\n
- Collateral Value: Market value of locked BTC<\/li>\n<\/ul>\n\n\n\n
A lower LTV indicates a safer position<\/strong>, while a higher LTV increases liquidation risk.<\/p>\n\n\n\n<\/span>Initial LTV<\/span><\/h2>\n\n\n\nThe 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.<\/p>\n\n\n\n
<\/span>Current LTV<\/span><\/h2>\n\n\n\nThe current LTV updates continuously based on BTC price movements<\/strong> and the growing loan balance.<\/strong><\/p>\n\n\n\nIf Bitcoin\u2019s 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.<\/p>\n\n\n\n
The current LTV is updated every 1 second, reflecting real-time BTC price movements and accrued interest.<\/p>\n\n\n\n
<\/span>Margin Call LTV<\/span><\/h2>\n\n\n\nA 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.<\/p>\n\n\n\n
<\/span>Liquidation LTV<\/span><\/h2>\n\n\n\nThe 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\u2019s insurance fund<\/strong> to cover risks and maintain system stability.<\/p>\n\n\n\n<\/span>Liquidation Price<\/span><\/h2>\n\n\n\nThe 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 <\/strong>liquidate your position to repay the loan.<\/p>\n\n\n\n<\/span>Index Price<\/span><\/h1>\n\n\n\nThe index price is the reference price used to determine the market value of BTC collateral.<\/p>\n\n\n\n
BtcTurk | Global calculates the index price using BTC prices from multiple major exchanges, including BtcTurk, Binance, Kraken, OKX, and Bybit.<\/strong><\/p>\n\n\n\nUsing 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.<\/p>\n\n\n\n
<\/span>Liquidation Scenarios<\/span><\/h1>\n\n\n\nLiquidation may occur in several situations.<\/p>\n\n\n\n
<\/span>1. Liquidation Due to Market Price Movements<\/span><\/h2>\n\n\n\nIf the BTC price drops significantly, the LTV may reach the liquidation threshold<\/strong>, triggering automatic liquidation.<\/p>\n\n\n\n<\/span>2. Liquidation at Loan Maturity<\/span><\/h2>\n\n\n\nIf the loan is not repaid by the due date<\/strong>, the system may close the loan using the collateral.<\/p>\n\n\n\n<\/span>3. Repayment Using Collateral<\/span><\/h2>\n\n\n\nBorrowers 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.<\/p>\n\n\n\n
<\/span>Managing Your Loan<\/span><\/h1>\n\n\n\nBorrowers can actively manage their loan position to reduce risk.<\/p>\n\n\n\n
<\/span>Adjusting Collateral<\/span><\/h2>\n\n\n\nBorrowers 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.<\/p>\n\n\n\n
<\/span>Repayment Options<\/span><\/h2>\n\n\n\nLoans can be repaid using two different methods.<\/p>\n\n\n\n
<\/span>Pay with USDT<\/span><\/h3>\n\n\n\nWhen repaying with USDT on BtcTurk | Global:<\/p>\n\n\n\n