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    Borrowing, Interest and Repayment (Unified Trading Account)
    bybit2024-09-10 12:09:35
    On the AppOn the Website

    The Unified Trading Account (UTA) allows for borrowing and repayment of assets under specific conditions. This article explains how the system works, including how borrowing is triggered, how interest is calculated, and the repayment process.

     

     

     

     

     

    Borrowing 

    Borrowing under the UTA is automatically triggered under specific scenarios. Manual borrowing is not supported.

     

    Formula

    • Cross Margin 

    Borrowed Amount = ABS [Min (0, Equity − Buy Option Initial Margin - Positive Option Value − Asset Frozen)]

     

    • Portfolio Margin

    Borrowed Amount = ABS [Min (0, Equity − Asset Frozen)]

    Equity = Asset Wallet Balance + Perpetual and Futures UPL + Options Value

     

     

     

    Borrowing Scenario

    When any of the below scenarios generate a borrowing amount, the system will process the auto borrowing of the asset. 

     

    Scenario

    Example

    Insufficient wallet balance to cover the respective transaction

    1. Trader A currently has USDC in their UTA, and has placed a USDT Perpetual contract order. 

    2. Upon order execution, a trading fee (fee to open the position) of 1.5 USDT will be incurred.

    3. The auto-borrowed amount is 1.5 USDT as Trader A does not hold any USDT in their wallet balance. 

    Perpetual and Futures contracts record unrealized losses

    1. Trader B opened a USDT Perpetual position and the current wallet balance is 50 USDT and 100 USDC.

    2. The position now has an unrealized loss of 100 USDT, resulting in the the current equity to -50 USDT.

    3. The auto-borrowed amount is -50 USDT (excluding fees), which will continue to change based on the unrealized PnL.

    Placed Buy Options limit order without USDC wallet balance

    1. Trader C has a BTC wallet balance in their UTA and has placed a limit order for USDC Buy Options of 1,000 USDC.  

    2. Upon order placement, a borrowed amount of 1,000 USDC will be incurred as this amount will be reserved as an Option premium once it is filled. 

    3. If the Buy Options order is filled, the borrowed amount will be realized as the options premium and deducted from the USDC wallet balance. 

    4. If the Buy Options order is canceled, the borrowed amount will be reversed. 

    Decrease in value of USDC Options positions

    A decrease in the option value may incur a borrowing amount. 


    Option Value = Mark Price × Quantity

    When the Spot Margin Trading function is enabled, assets are borrowed for Margin Trading

    1. Trader D has a wallet balance of 100 USDT  and buys 300 USDT of BTC/USDT on Spot Margin Trading. 

    2. The auto-borrowed amount is 200 USDT. 

     

     

     

    Borrowing Limit

    All users are subject to a maximum borrowing limit shared across their Main Account and Subaccounts. Borrowing limits vary by coin and VIP tier. For more details, visit the Margin Data page.

     

    For example, if the maximum borrowing limit for USDT is 2,500,000, the combined borrowing amount across the Main Account and two Subaccounts (A & B) must not exceed this limit. Exceeding this limit may trigger auto repayment.

     

     

     

     

     

    Interest

    When borrowing is incurred, interest accrues. However, not all borrowings are subject to interest accrual; some may fall within the interest-free range. Borrowings can be classified into two types: realized borrowing and unrealized borrowing.

     

    Realized Borrowing: Subject to interest accrual.

    Unrealized Borrowing: Can be interest-free if it falls within the maximum interest-free borrowing amount.

     

    Interest Scenario

    Understanding the borrowing scenarios will help you identify which borrowings are realized or unrealized, and if they are subject to interest accrual.

     

    Scenario

    Realized Borrowing

    Explanation

    Insufficient wallet balance to cover the respective transaction

    Yes

    Transactions that reduce wallet balance, such as trading fees, funding fees, or closed position losses, are realized expenses. The borrowed amount is considered realized borrowing, and interest accrued.

    Perpetual and Futures contracts record unrealized losses

    No

    Unrealized losses are not considered realized borrowing until the position is closed at a loss. This amount is interest-free if it falls within the interest-free range.

    Placed Buy Options limit order without USDC

    Yes

    When an options order is placed, USDC is borrowed, and when the order is filled, it will be used to pay the premium. Any borrowed amount for Buy Options limit order is considered as realized borrowing, and interest accrued.

    Decrease in value of USDC Options positions

    No

    Similar to unrealized losses, any decrease in value is unrealized until the option is delivered or the position is closed. This is interest-free if it’s within the interest-free range.

    When the Spot Margin Trading function is enabled, assets are borrowed for Margin Trading

    Yes

    In Spot Margin Trading, actual Spot assets are borrowed to place orders. Regardless of whether an order is filled, any borrowed amount from Spot Margin Trading is considered realized borrowing, and interest accrued.

     



    Interest Accrual and Calculation 

    Realized Borrowing

    Interest will be accrued hourly once it is incurred. The system will auto-calculate and charge the interest five minutes after each hour, such as 8:05AM UTC or 9:05AM UTC, etc. This is based on the interest rate and the amount of borrowing at that time. 

     

    The interest rate for UTA is not fixed and it is subject to change on a real-time basis. For more information on how the interest rate is derived, please refer to Bybit Floating Interest Rate System

     

    Unrealized Borrowing

    Unrealized borrowing is subject to interest-free if it falls within the maximum interest-free amount. If the unrealized borrowing amount exceeds the interest-free range, interest will be charged for the entire borrowed amount based on the amount five  minutes after each hour, with the same interest calculation of realized borrowing.

     

    Formula

    Hourly Interest Charge = Borrowing Amount × Hourly Interest Rate




    Maximum Interest-Free Amount

    The UTA offers an interest-free borrowing limit, which varies by VIP tier.

     

    VIP Tier

    USDT Max. Interest-Free Amount

    USDC Max. Interest-Free Amount

    Non-VIP

    30,000

    15,000

    VIP 1-3

    50,000

    25,000

    VIP 4-5, Supreme VIP, Pro 1-5 

    70,000

    35,000

     

    Notes: 

    — The maximum interest-free amount is calculated on a per-account basis, which means each Main Account or Subaccount will have a separate interest-free amount quota.

    — Parameters may be modified based on market conditions. Bybit will notify users in advance. 

     

     

     

    Penalty Interest

    A penalty interest will be charged when your borrowing amount exceeds 100% of the maximum borrowing limit. The formula is:

     

    Formula

    Penalty Interest Payment = Borrowing Amount × Hourly Interest Rate × (utilization ratio)3

     

    Example

    If the borrowing amount is 3,000,000 USDT and the maximum borrowing limit is 2,500,000 USDT with an hourly interest rate of 0.0001%, the penalty interest charge is calculated as follows: 

     

    Utilization Ratio = 3,000,000 / 2,500,000 = 120%

    Penalty Interest = 3,000,000 × 0.0001%  × (1.2)3 = 5.184 USDT






    Repayment

    Manual Repayment

    Currently, traders can perform manual repayments on the UTA via the few methods stated below: 

     

    1. Use Repay Button: Go to UTA and click on the Repay button for repayment. A 0.1% repayment handling fee (conversion fee from margin assets into borrowed coins) on the total repayment amount will apply. For more details, please visit here

     

    1. Deposits or Transfers: Deposit or transfer assets in the respective borrowed amount from another account to your UTA. The borrowed amount will be deducted from your wallet balance immediately.

     

    1. Selling Assets: Sell margin assets via Spot Trading into the assets you borrowed. However, please note that if the Initial Margin Ratio (IMR) is 100%, traders are not allowed to place orders to buy assets with a lower collateral value ratio using assets with a higher one. You can view the collateral value ratio from here

     

     

     

    Auto Repayment

    If auto repayment is triggered, the system will automatically convert other positive balance assets into the borrowed coin based on the index price to repay the loan. 

     

    Auto-Repayment Scenarios

    Auto repayment will be triggered in the following scenarios:

    1. Maintenance Margin Rate (MMR) ≥ 100%: The auto repayment process will be triggered until liabilities are fully repaid, with a 2% handling fee.

     

    2. Exceeding Maximum Borrowing Limit: When the maximum borrowing limit is hit, the auto repayment process will be triggered until the borrowed amount is reduced to 90% of the maximum borrowing limit, with a 1% repayment handling fee. Among all accounts with borrowings, the system will prioritize repayment in descending order, starting with the accounts having the highest borrowed amount and proceeding to those with the lowest.

     

     

     

    Auto-Repayment Process

    Bybit supports a delayed automatic repayment mechanism, which only applies to the scenario of users exceeding the maximum borrowing limit. 

     

    When the borrowing limit reaches 100%, the system sends an email notification to the traders as a reminder. Once your borrowed amount falls below 100% of the maximum borrowing limit, your account will return to a safe level. However, if the account's borrowed amount remains at or above 100% of the limit for a continuous 24-hour period or reaches 200%, whichever comes first, the system will initiate the automatic repayment. Note that for scenarios where the MMR is ≥ 100%, the delayed automatic repayment mechanism does not apply.

     

    The auto repayment process is as follows:

     

    Step 1: The system will cancel the active orders from Spot/Spot Margin Trading (i.e., limit orders or TP/SL orders) and Buy Options that occupy the borrowed assets to free up frozen balances.

     

    Step 2: Assets with positive equity and without any borrowed amount under the UTA will be auto converted into the assets in liability for repayment, without canceling the Spot/Spot Margin or Buy Options active order. Assets will be sold according to the liquidity sequence stated here.

     

    Step 3: Cancel the Spot/Spot Margin and Buy Options active order to free up the frozen balance of other coins according to the liquidity sequence to auto-exchange into the assets in liability for repayment.

     

     

    Notes: 

    — Auto-repayment will proceed through Step 1 to Step 3 until the borrowing amount is reduced to 90% of the maximum borrowing limit (for exceeding the maximum borrowing limit scenario) or until all liabilities are fully repaid (for MMR ≥ 100% scenario).
    — In the case where traders have borrowings in multiple coins, the system will repay the non-stable coins first according to the liquidity sequence, followed by stablecoins.

    — If the MMR remains above 100% after the auto-repayment process, liquidation to derivatives position will step in. For more details, please refer to Trading Rules: Liquidation Process (Unified Trading Account).

     

     

     

     

    View Borrowing, Interest, and Repayment History

    Borrow History

     

    On the App, go to the Assets page → Unified Trading Account and tap on Borrows to view the borrow history.

     

     

    On the Borrow History, you can see the borrowing details under each coin, including the borrowed amount, hourly interest rate, maximum borrowing amount, utilization ratio, and borrowed amount (interest-free).

     

    • Maximum borrowing amount: The maximum borrowing limit for each coin, and this limit is shared among your Main Account and Subaccounts. 

    • Utilization Ratio: This shows the utilization ratio of your borrowing limit across your Main and Subaccounts. 

    • Borrowed Amount (Interest-Free): This shows the borrowed amount arising from unrealized loss and the amount that is exempted from the interest charge.

     

     




    Interest Record and Repayment History

    On the App, go to Assets → Unified Trading AccountTransaction log and filter the respective transaction types.

     



    To learn more about how to view your repayment history, please refer to here.

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