Understanding Crypto Collateral Loans
Collateralized lending allows users to borrow funds by pledging QC/USDT or other digital assets on ZB Exchange. This financial tool enhances capital efficiency through flexible borrowing terms and simple repayment processes.
Key Features:
- Asset-backed borrowing using QC/USDT
- Flexible loan-to-value ratios
- Multi-scenario usability for borrowed funds
- Real-time repayment options
Step-by-Step Guide (Legacy Version)
1. Account Preparation
- Log in to your ZB Exchange account
- Navigate to [Finance] > [Collateral Account]
2. Asset Transfer
- Select QC in your asset list
- Click [Transfer In] to move QC from spot account
- Enter transfer amount and confirm
👉 Best practices for asset transfers
3. Loan Application
- Access [Collateral Loan] section
- Select [Borrow Crypto]
Configure loan parameters:
- Collateral: QC
- Loan currency: BTC
- Loan amount
- Repayment period
Important Notes:
- Collateral value fluctuates with market prices
- Monitor positions to prevent liquidation
- Platform notifications may experience delays
Updated Process (Current Version)
Simplified Workflow:
- Access [Finance] > [Collateral Account]
- Complete QC transfer (same as legacy)
- Select [Borrow Crypto]
- Configure loan terms in streamlined interface
Risk Management Tips:
- Maintain adequate collateral buffer
- Set price alerts for loan positions
- Regularly check account health metrics
👉 Advanced collateral strategies
Frequently Asked Questions
Q1: What's the minimum collateral amount?
A: There's no fixed minimum - amounts vary by asset and platform requirements.
Q2: How are interest rates determined?
A: Rates depend on loan duration, asset type, and market conditions.
Q3: Can I repay loans early?
A: Yes, ZB Exchange supports early repayment without penalties.
Q4: What happens during market volatility?
A: Positions may be liquidated if collateral value falls below maintenance threshold.
Q5: How long do fund transfers take?
A: Asset transfers between accounts typically process instantly.
Q6: Are there borrowing limits?
A: Yes, limits depend on your account tier and collateral amount.
Key Considerations
- Market monitoring is essential for collateral positions
- Diversification can mitigate single-asset volatility risks
- Platform updates may modify loan terms - stay informed