Loan Rules

1. Financing Limit

• The system assigns an initial financing limit based on the currency.

• All trading pairs within the same quoted currency share this limit. For example, if the USDT financing limit is 100,000, this limit can be used for long positions in BTC/USDT, ETH/USDT, and SOL/USDT.

• Borrowing reduces the available limit, while repayment restores it.

  Note: If the remaining limit is insufficient, it may restrict your trade amount. For higher limits, please contact our support team at [email protected].

2. Financing Amount

• To ensure the success of opening and adding to positions, the system accounts for slippage tolerance when calculating the financing amount. Consequently, a refund may be issued after the transaction if there is a surplus. This refund is processed automatically; no action is required on your part. The exact financing amount can be viewed on the position details or transaction history page.

3. Interest Calculation

• Financing Interest = Financing Principal × Hourly Interest Rate × Actual Borrowing Hours. Interest is calculated hourly, with partial hours rounded up to a full hour, and the rate updates every hour.

• This product uses simple interest; compound interest does not apply.

• Given market rate fluctuations, Matrixport reserves the right to adjust the financing rate for ongoing orders. Please monitor rate changes closely.

4. Order Interest Calculation and Repayment Rules

I. Interest Calculation Rules

Conditions for Interest Accrual

• When users place limit orders to open positions, the system will pre-allocate and lock the borrowed principal, at which point interest begins accruing.

• Interest is directly added to the position debt rather than calculated separately.

Interest Calculation Timing

• Hourly Calculation: Interest is calculated only at the top of the hour (e.g., 20:00). Partial hours are not counted.

• First-Hour Waiver: If an order is placed before the hour (e.g., 19:44) and closed before the next hour (e.g., 19:50), no interest is charged.

• Post-Hour Calculation: If a position remains open past the hour (e.g., 20:01), interest for the next hour (20:00–21:00) is calculated at the top of the hour (20:00).

Interest Formula

Interest=Actual Borrowed Principal×Hours Used×Hourly Interest Rate \text{Interest} = \text{Actual Borrowed Principal} \times \text{Hours Used} \times \text{Hourly Interest Rate} Interest=Actual Borrowed Principal×Hours Used×Hourly Interest Rate

• Partial hours are rounded up to 1 hour (except for the first hour).

• Basis for Calculation:

  • If an order is partially filled, interest is first calculated based on the locked principal.

  • After execution, interest is adjusted based on the actual borrowed amount.

II. Interest Calculation Examples

📌 Example 1 (First-Hour Waiver)

• 19:44: Place an order, borrowing 10,000 USDT (only 500 USDT filled).

• 19:50: Close position → No interest charged (did not cross the hour).

• 20:01: Close position → Interest charged at 20:00 (for 20:00–21:00, based on 10,000 USDT).

📌 Example 2 (Partial Fill Interest Adjustment)

• 19:44: Place an order, locking 10,000 USDT (only 500 USDT filled).

• 20:02: Close position → Two interest calculations:

  • 20:00: Interest for 20:00–21:00 based on 10,000 USDT.

  • 21:00: Interest for 21:00–22:00 based on 500 USDT.

III. Order Repayment Rules

Cancellation Handling

• Unfilled portion is automatically refunded (interest repaid first, then principal).

• If interest was accrued but no execution occurred, the system deducts interest from the margin account (if margin is in tokens, automatic conversion occurs).

Risk Prevention for Extreme Cases

• If an order remains open too long, accumulated interest may trigger a risk warning, forcing cancellation to prevent liquidation.

• Recommendation: Manage order duration carefully to avoid unnecessary interest costs.

IV. Repayment Examples

📌 Example 1 (Cancellation Refund)

• 10:01: Place order, borrow 100,000 USDT.

• 10:02: Only 100 USDT filled → Interest calculated at 10:00–11:00 (100,000 USDT).

• 11:00: Interest recalculated for 11:00–12:00 (100,000 USDT).

• 11:02: Cancel order → 99,900 USDT refunded, accrued interest deducted from margin.

📌 Example 2 (Margin Deduction in Tokens)

• 10:01: Place order, borrow 100,000 USDT.

• 11:00: Interest for 11:00–12:00 (100,000 USDT).

• 12:00: Interest for 12:00–13:00 (100,000 USDT).

• 12:02: Cancel order → If margin is in BTC, system sells BTC to repay USDT interest.