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    Introduction to Institutional Loans
    bybit2024-06-04 08:51:25

    Bybit Institutional Loans is designed to provide competitive loans services to institutional users and help them better utilize collateral assets in their Bybit account. 

     

    Key Advantages: 

    • Collateral assets are locked in the Unified Trading Account of both the user’s Main Account and Subaccounts. 
    • As long as the loans-to-value (LTV) ratio is met, the collateral assets can be traded in the Spot or Derivatives markets.
    • Institutional Loans supports multiple collateral assets. 
    • Institutional Loans provides competitive interest rates and borrowing amounts. Please reach out to your institutional account manager for more information on the latest rates. 
    • Leverage interest-free loans offered in our promotional events, now with Unified Trading Account supported. Head to this page for more information about the event.   

     

     

    Product Specifications

    Currently, Bybit offers up to 5x leverage (UTA) for Institutional Loans. 

     

    The details of product specifications are as follows:

     

    Product

    Institutional Loans: 5x Leverage (UTA) 

    Target Audience 

    Institutional Traders 

    Borrowable Assets

    USDT, BTC, ETH and USDC

    Max. Borrowing Amount 

    Please reach out to your institutional account manager to find out more 

    Supported Account

    • UTA supported
    • Third-party custodian accounts and its subaccounts are not supported 

    Loan Leverage

    5x

    Min. Required Borrowing Amount

    1,000,000 USDT or an equivalent value

    Interest Calculation 

    Interest is calculated daily, and compounded and paid monthly based on the user’s performance in the Lending Volume event. 


    Daily Interest Accrued = Outstanding Loan Principal x Daily Interest Rate 

    Collateral Assets 

    Collateral Assets refer to the total USDT amount of all Institutional Loans collateral in the user’s UTA. 


    Note: 

    When converting your assets into non-margin assets or margin assets with a lower collateral value ratio, you may experience immediate liquidation upon order placement if the LTV exceeds the liquidation ratio. We strongly advise managing your risk appropriately to avoid such an event. You can refer here for the list of the supported margin assets.


    Click here to find out more about the margin assets supported under UTA and the collateral value ratio of different coins. 

    Loan Period

    Up to 3 months, subject to renewal

    Application Rules 

    Please contact an Institutional Representative to apply, OR

    You can send an email to institutional_services@bybit.com 

    Lending Account

    Risk Unit Main UID

    Repayment Rules 

    Repayment Date

    The repayment date is mutually agreed upon offline and documented in the contract agreement.

     

    Repayment Scenarios

    1. Scheduled Repayment: 

    You have the option to repay your loans on the agreed-upon due date.


    2. Early Repayment: 

    There's also the flexibility for early repayment if desired. 

    Risk Management

    Risk Unit

    • A Risk Unit refers to a group of bound UIDs.
    • In a set of Main and Subaccounts, different UIDs can be assigned to different risk units, but one UID can only link to one risk unit. 
    • A risk unit can bind multiple UIDs, but these UIDs must come from the same set of Main and Subaccounts. 
    • A risk unit must specify one UID within the risk unit as the representative ID, which can be either the Main or Subaccounts UID. 
    • The loans under a specified UID for the risk unit must be fully repaid before it can be unbound.
    • Currently, we support binding UID to a risk unit through OpenAPI, please refer to the API documentation.

    LTV 

    The LTV for an Institutional Loans Risk Unit is calculated as follows: 

    LTV Ratio = (Outstanding Loan Principal + Outstanding Loan Interest) / Total Assets 


    Where, 

    • Outstanding Loans Principal = Total amount of all remaining outstanding loans in the Risk Unit (converted to USDT)
    • Outstanding Loans Interest = Total amount of all outstanding interest accrued from loans in the Risk Unit (converted to USDT)
    • Total Assets = Total collateral assets in the risk unit (converted to USDT) + Total negative equities under UTA in the Risk Unit

     

    LTV is calculated based on the Risk Unit. You can inquire and monitor real-time changes in LTV using Open API. (LTV inquiry).


    The calculation of IMR and MMR under UTA are based on each UID and are independent of the LTV ratio for Institutional Loans. Learn more about IMR and MMR in Trading Rules: Liquidation Process (Unified Trading Account).


    For example, 

    LTV = 1,120,151 USDT/1,400,273 USDT = 80%

    The remaining borrowed amount in your Risk Unit in 1,120,151 USDT,  

    where 

    • Outstanding USDT Loans Principal  = 1,000,000 USDT 
    • Outstanding Loans Interest = 50,000 USDT 

    Remaining Borrowed Amount (USDT) = 1,000,000 + 50,000 = 1,050,000 USDT 

    • Outstanding USDC Loans Principal = 70,100 USDC
    • Outstanding Loans Interest = 100 USDC 

    Remaining Borrowed Amount (USDC) = 70,100 + 100 = 70,200 USDC (Converted to 70,151 USDT)

    Remaining Borrowed Amount = 1,050,000 + 70,151 = 1,120,151 USDT. 


    The total asset in your Risk Unit is 1,400,273 USDT, 

    where, 

    • Collateral Asset under UID 1: 100 BTC (worth 2,755,975 USDT)  and 1,000 USDT
    • Collateral Asset under UID 2: 100.1 BTC (worth 2,756,251 USDT) and -2,000 USDT

    BTC Tier 

    Collateral Value Ratio

    Asset Value

    0~1,000

    1

    1,000

    1,000~1,000,000

    0.95

    949,050

    1,000,000 ~ 9,999,999

    0.1 

    451,223


    Total USDT Asset Value =1,000 USDT + (-2,000 USDT )= - 1,000 USDT


    As the Total USDT Assets in the Risk Unit is negative, it does not need to be converted based on collateral value ratio. 

    Trading Restriction

    LTV >= 80%

    • Transfer Restriction: It is prohibited to transfer the collateral assets in the UTA within the risk unit to other accounts, including the Funding Account or Inverse Derivatives Account within the risk unit or all accounts not within the risk unit.
    • Your maximum transferable amount is determined by your LTV. When your LTV is < 80%, you can transfer the excess collateral assets within the risk unit to outside the risk unit, provided that your LTV must be <= Tafter the transfer.

     

    LTV>= 85%

    Transactions that will increase order costs in UTA will be restricted, including:

    • Spot Trading
    • USDT Perpetual
    • USDC Perpetual & Futures:
    • USDC Options 

     

    LTV>= 90%

    • Spot Trading restricted: Spot buy and sell orders in UTA will be restricted.
    • USDT Perpetual: Open and close orders in UTA will be restricted. 
    • USDC Perpetual & Futures: Open and close orders in UTA will be restricted. 
    • USDC Options: Open and close orders in UTA will be restricted. 

    Liquidation

    When the LTV ratio reaches or exceeds 90%, here's how the repayment process works:

    • Canceling Active Orders: Active orders for Spot, USDT Perpetual, USDC contracts, and USDC Options under UTA are canceled.

    • Transferring Available Assets: If the LTV ratio remains at or above the 85% and 95% of your available assets in your UTA is sufficient for repayment, the system will automatically transfer the 95% of the available assets in your UTA for repayment to reduce the LTV ratio of the user's account to below the liquidation level.

    If the LTV ratio still doesn't drop below 85%, the following steps are taken:

    1. Select the accounts within the risk unit that need to be liquidated to bring the LTV ratio below 85%. The selection process will prioritize accounts with non-UTA loans, followed by accounts with UTA loans, based on the total equity amount from highest to lowest.

    2. Once the accounts are selected, the system will close the positions for USDT Perpetual Contracts, USDC Contracts, and USDC Options held in those accounts.

    3. After closing the Derivatives positions, the system will automatically convert the margin assets and non-margin assets in the accounts into the borrowing coin for repayment.

    4. If, after the above procedure, the LTV ratio remains at or above the 85%, the system will take control of all assets across the user's accounts to repay the liabilities.

     

     

    Liquidation Settlement 

    In the liquidation process, a settlement fee will be collected by Loans Insurance Funds using the following formula: 

    Liquidation Settlement Fee = Liquidated Asset * 2% 

    Please monitor your risk level closely to avoid liquidation. 

     

     

    Liquidation Process between Institutional Loans and UTA Account

    When liquidation at the UTA level is being processed,  and the Institutional Loans liquidation is triggered, the liquidation process for the Institutional Loans will bypass the current UID.  

    Liquidation at the UTA level operates separately from Institutional Loans liquidations. For example, while the rules for staggered liquidation of Options apply at the UTA level, they do not apply to Institutional Loans. 


    During the liquidation process for Institutional Loans, any liquidations at the UTA level will only take place after the settlement of Institutional Loans liquidations. 

    Supported Products and Services

    Spot Trading 

    Supports all current Spot trading pairs and leveraged tokens 

    Visit this page to learn about the leverage supported for Spot 


    USDT Perpetual

    Supports USDT Perpetual contracts 

    Visit this page to learn about the opening restriction ratio of supported contracts 


    USDC Perpetual/Futures

    Supports USDT Perpetual and Futures contracts 

    Visit this page to learn about the opening restriction ratio of supported contracts


    USDC Options

    Supports USDC Options


    Margin Mode

    Supports Isolated Margin, Cross Margin, and Portfolio Margin mode 


    OTC Trading

    Supports OTC Trading 


    Convert

    Convert is yet to be supported on Institutional Loans

     

    For any inquiries, please reach out to our Institutional Representatives, or send an email to institutional_services@bybit.com. At the moment, our Live Chat has yet to support Institutional Loans-related queries. 

     

    For more information, please refer to FAQ — Institutional L.

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