UPay Crypto Loans FAQ

1. What is UPay Crypto Loans?
-UPay offers a demand Crypto loans service with floating rates and no fixed terms, designed to meet your short-term liquidity needs. Our Crypto loans service are available at highly competitive rates, allowing you to use all supported assets in your account as collateral for the loans.

2. Which cryptocurrencies can be borrowed and used as collateral in UPay's crypto loans?
-Currently, the assets that can be borrowed and used as collateral include USDT, BTC, ETH, among others, with ongoing support for new types of currencies.
*For detailed information, please refer to the collateralized borrowing page.

3. What can the borrowed assets be used for?
-The borrowed funds can be used for various purposes, including transactions in remittances, deposits, and convert, and can even be withdrawn from UPay.
The collateral is pledged in UPay's demand borrowing service as a guarantee for the repayment of the borrowed digital assets.

4. Can I repay the loan using a different currency from the borrowed one?
-No, you can only repay the loan using the same currency you borrowed.
For example, if you borrowed USDT, you must use USDT for repayment.

5. Can I repay all or part of the loan early?
-You can repay the loan at any time. Interest will be charged based on the actual duration of the loan.

*Please note: If the loan duration is less than one day, it will be calculated as one day, and the principal repayment is calculated based on the previous day.

6. How is the loan interest calculated?
-Our collateralized borrowing product is a demand loan with daily updated interest rates. Once a loan is confirmed, the system immediately generates the first interest charge, with subsequent interests calculated daily at UTC+0.
The formula for calculating daily interest is as follows:
Daily Interest = Loan Amount × Daily Interest Rate
Accumulated Interest = Σ Daily Interest

7. How can I repay the principal and interest?
-You can manually make repayments on the borrowing order page.
*Please note that repayments are made following the order of interest first, then principal.

8. What is the loan-to-value (LTV) ratio?
-LTV stands for Loan-to-Value ratio. It represents the ratio of the borrowed digital assets plus any accrued interest to the value of the collateral, with these values measured based on the price indices of various cryptocurrencies.
The formula is as follows: LTV = Loan Value / Collateral Value
For example, assuming an initial LTV of 65% for USDT: if a user pledges 1,000 USDT, they can borrow assets up to a value of 650 USDT.

9. What happens when a loan is liquidated?
-If your borrowing order reaches the liquidation LTV and is liquidated, all your collateral will be sold to repay the order and cover the liquidation fee (to be determined).
*The liquidation fee will be deducted from your collateral amount, and any remaining collateral after full repayment will be returned to your wallet account.

10. Can repayments be made or collateral adjusted during a forced liquidation state?
-No. Users cannot perform any actions on orders in a forced liquidation state. Any remaining collateral after the full repayment of the loan and interest will be returned to your wallet account.

11. How can I adjust the amount of collateral?
-You can increase or decrease the amount of collateral on the borrowing order page. By increasing the collateral, you can lower the LTV ratio, thereby reducing the risk of liquidation. If you wish to decrease the collateral amount, you can only do so when the current LTV ratio is below the initial LTV. The maximum reduction of collateral is the amount needed to restore the LTV ratio to the initial level.

12. What are the risks associated with flexible loan?
-Like other borrowing products, flexible loan carries certain risks. Market fluctuations can affect the value of your collateral.

13.How many types of assets can I pledge at once?

-You can only pledge one type of currency at a time; combination pledging for loans is not supported.

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