What is Crypto.com Lending?

General information about Crypto.com Exchange Lending

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Written by Support Specialist
Updated over a week ago

General information about Crypto.com Exchange Lending

Crypto.com Lending allows you to borrow against your crypto assets (known as ‘Virtual Assets’) without selling them. You can deposit them as Collateral and take out crypto loans to fulfill your financial needs, use them for Margin Trading on the Crypto.com Exchange, or hedge on other exchange platforms.

Common Terms on Crypto.com Exchange?

Term

Description

Collateral

The amount of immediately available crypto assets maintained, or required to be maintained in Crypto.com Lending for loan drawdown.

Wallet

The primary crypto wallet for your Crypto.com Exchange account (a.k.a. Account), which you can use to receive loans, deposit Collateral and make loan repayments.

Loan-to-Value (LTV)

LTV is the ratio of your loan to the value of your Collateral. When you borrow a loan, we calculate your loan amount or required Collateral based on the following formula:

LTV = (Loan Amount) ÷ (Market Value of Collateral)

When a loan becomes active, we monitor your loan's LTV based on the following formula:

LTV = (Market Value of Outstanding Balance) ÷ (Market Value of Collateral)

See "What is Loan-to-Value (LTV)?" for further details.

Lending Term Limit

The maximum amount of time we can provide you with credit under a loan.

Maximum Borrowing Limit

The maximum amount of credit that Crypto.com Lending can provide, is a general ceiling of your outstanding loans in aggregate under Lending. The Maximum Borrowing Limit may be subject to change at the discretion of Crypto.com.

Margin Call

A Margin Call will be triggered when your loan's LTV reaches or exceeds the prescribed threshold, and you will receive email notifications regarding loan repayment.

Forced Liquidation

When your loan's LTV reaches or exceeds the prescribed threshold set by Crypto.com for a Forced Liquidation, we will liquidate the entire corresponding Collateral to make full repayment of your loan. After the Forced Liquidation, all remaining liquidation proceeds will be deposited into your Crypto.com Exchange Wallet. Please note that a Liquidation Fee will be applied.

See "What triggers Forced Liquidation?" for further details.

Interest

The cost of borrowing a crypto loan.

See "How is interest calculated?" for further details.

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