Fixed Rate Loan is a peer-to-peer (P2P) loan service that allows users to borrow or lend with fixed interest rates and terms.
How It Works
1. Order Placement
To Borrow
As a borrower, you can either select an existing order from I Want to Borrow or create a custom order by specifying your preferred interest rate, duration and borrowing amount. Once you place a custom borrow order, the system will automatically match it with available supply orders.
Example
Suppose Bob places a borrow order for 100,000 USDT at an interest rate of 6%. If there are two supply orders available — Order A for 50,000 USDT at 5% and Order B for 50,000 USDT at 4% — the system will match Bob's borrow order with both. Despite the lower rates specified by the suppliers, Bob will still pay the 6% rate he has selected, which allows the suppliers to earn more interest than initially expected.
Loan Repayment
Option 1: Auto-Repay
When placing a borrow order, you can choose to enable Auto-Repay. If enabled, the assets in your Funding Account will be automatically used to repay the loan when the borrow order expires, helping you avoid overdue penalties. Make sure your account has sufficient funds for full repayment, as partial repayments are not supported.
If there aren't enough assets in your Funding Account, the system will retry repayment every minute until it's successful or the 24-hour grace period ends.
If all attempts fail:
- You'll need to repay the loan manually.
- If repayment is not completed within the 24-hour grace period, your collateral will be liquidated, and a 2% liquidation fee will apply. If your collateral is converted to repay the loan, a repayment fee will be applied. The fee rate is the higher between the repayment fee rates for the collateral asset and the debt asset. The conversion rate will be calculated based on the Index Prices of both the collateral asset and the debt asset.
For more information on penalty interest during the grace period, refer to the Interest Accrual section below.
Option 2: Convert to Flexible Rate
When placing a borrow order, you can choose to enable Convert to Flexible Rate. If enabled, once your loan reaches maturity, it will automatically convert into a flexible-rate loan, allowing you to continue borrowing without the need to repay the full amount immediately. Please note that once it is converted to a flexible rate, the interest rate is variable and updates every hour. Interest is compounded and calculated on an hourly basis.
If conversion is not available at the time of maturity:
- You’ll need to repay the loan in full by its original due date.
- Failure to repay on time may result in overdue penalties or additional restrictions on your account.
To avoid unexpected issues, please monitor your loan’s maturity status regularly.
Loan Renew
Loan renewal allows you to restore an active loan after repaying it before the maturity date.
For Fixed-Term Crypto Loans, if you repay your loan early but later decide that you still need the borrowed assets, you may use the Renew feature to resume borrowing under the original loan order.
When a loan is renewed:
- The loan will continue until the original due date. Please note that Loan Renewal does not extend the original loan term.
- The renewed amount cannot exceed the amount that was previously repaid.
- No additional interest will be charged, as the interest for the full loan term was already calculated when the loan originated.
- Loan renewal is subject to collateral requirements at the time of renewal.
The Loan Renew function is supported for repaid orders with an amount greater than 0 and more than 6 hours before the due date. Find more information on this article.
To Supply
The supply process works similarly to the borrowing process. As a supplier, you can either select an existing order from I Want to Supply or create a custom order by setting your preferred interest rate, duration and lending amount. Once you place a custom supply order, the system will automatically match it with available borrow orders.
Example
Suppose Alice places a supply order for 100,000 USDT at an interest rate of 5%. If there are two borrow orders available — Order A for 50,000 USDT at 6% and Order B for 50,000 USDT at 7% — the system will match Alice's supply order with both. The borrowers will still pay their respective rates of 6% and 7%, while Alice earns a higher return than 5%, receiving the borrowers' interest payments minus the platform management fees.
Notes:
— The token amount of supplied assets remains principal-protected throughout the process.
— Bybit will charge 10% of the regular interest and 30% of any overdue interest paid by borrowers as management fees, with the remaining amount distributed to suppliers as earnings.
2. Order Matching
The system matches borrow and supply orders with similar interest rates and terms every minute (e.g. 11:05AM, 11:06AM and so on). For instance, if you place an order at 11:05:30AM and there's a matching order in the order book, your order will be executed at the next matching time, which is 11:06AM.
If the order book contains an order that meets the borrowing conditions or offers better terms, the borrower's order will be matched at their desired interest rate.
For suppliers, if there's a borrower willing to accept a higher interest rate, the system will prioritize that match. The supplier will earn higher interest based on the borrower's specified interest rate, minus a small management fee charged by the platform.
3. Interest Accrual
The interest rate for a Fixed Rate Loan is locked in when the borrower confirms the loan. Interest is charged upfront when the loan assets are transferred. Once a borrow order is matched, the borrowed assets — minus the estimated interest — will be credited to the borrower's Funding Account. The supplier will receive both the principal and interest at the end of the loan term or when the overdue period concludes.
Interest is calculated as follows:
Borrowing interest charged = Borrowed amount × Annualized interest rate × Duration ÷ 365
Supplying interest earned = Supplied amount × Annualized interest rate × Duration ÷ 365 (deducting platform management fees)
Starting from October 9th, 2025, interest will begin accruing at the nearest scheduled time slot (00:00 UTC or 12:00 UTC) after the order is matched, rather than at the exact matching time. For example, if your order is matched at 10:42 UTC, interest will start accruing at 12:00 UTC.
Notes:
— If the loan is overdue, a penalty of three times the interest will automatically apply, accruing hourly during the grace period following the expiry date. If the loan remains unpaid by the end of this period, the collateral will be automatically liquidated to cover the loan and overdue interest. A liquidation fee of 2% of the loan amount will also be charged. If your collateral is converted to repay the loan, a repayment fee will be applied. The fee rate is the higher between the repayment fee rates for the collateral asset and the debt asset.
— If the borrower repays early, the prepaid interest will not be refunded. In this case, the supplier's funds will still be returned on the settlement date.
4. Collateral
As a borrower, you can choose eligible assets from your Funding Account to use as collateral. The collateral value will be calculated in USD based on Index price tiered collateral value ratio.
Calculation Formula
Collateral Value = (Tier1 amount × Tier1 ratio) + (Tier2 amount × Tier2 ratio) + ... + (TierN amount × TierN ratio)
- Each tier amount refers to the portion of the asset's USD value that falls within that specific tier.
- Each tier ratio is the corresponding collateral value ratio applied to that tier.
Example
If John uses 6,000,000 MYRO as collateral, and MYRO is priced at $0.06, the collateral value will be calculated as follows:
USD Value (based on Index price) = 6,000,000 × $0.06 = $360,000
Collateral Value (based on Index price) = $100,000 × 100% + ($200,000 – $100,000) × 75% + ($300,000 – $200,000) × 50% + ($360,000 – $300,000) × 0% = $225,000
Note: The example above is for illustrative purposes only. For details on supported collateral assets and the tiered collateral value ratio, please check here.
5. Liquidation
The Liquidation LTV is the threshold at which your collateral will be automatically liquidated to repay the loan and minimize risk.
If the order reaches the Liquidation LTV, currently set at 95%, the liquidation process will be triggered immediately, and any pending loan orders will be canceled first. If the LTV drops to 95% or lower after cancellation, the liquidation will stop. Otherwise, forced repayment will be initiated, selling the collateral assets to repay the loan. The conversion rate will be calculated based on the Index Prices of both the collateral asset and the debt asset.
In the case of forced repayment, a 2% liquidation fee of the loan amount will be charged and deducted from the collateral. Any remaining collateral after the liquidation will be returned to your Funding Account. If your collateral is converted to repay the loan, a repayment fee will be applied. The fee rate is the higher between the repayment fee rates for the collateral asset and the debt asset.
For more information on Crypto Loans, refer to the following articles: