Introduction to Crypto Borrowing
Borrowing has become a fundamental tool in cryptocurrency trading, particularly within DeFi markets. Investors traditionally used offshore exchanges for leveraged trading strategies—until now. Taiwan's MAX Exchange introduces the "Borrow & Earn" Wallet, enabling local investors to access 3x leveraged long positions and 2x short selling without transferring assets abroad.
Key Benefits:
- Seamless Fiat Integration: Profit conversion directly to Taiwanese bank accounts.
- Low Entry Barrier: Available after Lv1/Lv2 identity verification.
- 200% Borrowing Cap: Deposit 1 BTC to borrow up to 2 BTC (3x exposure).
How to Use the Borrow & Earn Wallet
Step-by-Step Guide:
- Navigate to "Wallet" in the MAX App.
- Select "Borrow & Earn" under the现货 section.
- Transfer collateral (e.g., BTC, ETH, USDT) from your现货 wallet.
Borrow additional crypto: Choose your desired asset and confirm terms.
- Interest accrues hourly (rates displayed pre-borrow).
- Trade: Switch to the dedicated Borrow & Earn trading pairs.
👉 Maximize your trades with Borrow & Earn
Trading Strategies Explained
1. 3X Leveraged Long on BTC
Scenario: BTC at $40,000; predicted 25% rise.
Steps:
- Buy 1 BTC → Transfer to Borrow & Earn.
- Borrow 80,000 USDT (200% of collateral).
- Buy 2 BTC → Total holdings: 3 BTC.
Sell at $50,000:
- Profit: $30,000 (75% ROI before fees).
Risk: 20% drop triggers liquidation.
2. 2X Short Selling
Scenario: Anticipate BTC dropping to $30,000.
Steps:
- Deposit 40,000 USDT → Borrow 2 BTC.
- Sell BTC → Hold 120,000 USDT.
Repurchase at $30,000:
- Profit: $20,000 (50% ROI).
Risk: 25% price increase forces liquidation.
Liquidation Mechanism
MAX uses an A/D Ratio (Assets/Debt) to monitor positions:
- Initial Ratio: 1.5
Liquidation Threshold: 1.2
- 3X Long: -20% price movement.
- 2X Short: +25% price movement.
Protection: Prices reference global exchanges (Binance, Coinbase) to minimize volatility-based liquidations.
Why Choose MAX Exchange?
- Regulated: Compliant with Taiwanese laws.
- Cost-Effective: Lower fees vs. international transfers.
- All-in-One Service: From fiat onramps to leveraged trading.
FAQs
1. What’s the maximum leverage on MAX?
- 3X for long positions, 2X for shorts.
2. How are interest rates calculated?
- Hourly rates apply; view details before borrowing.
3. Can I borrow cross-crypto (e.g., USDT to buy BTC)?
- Yes, MAX supports cross-collateral borrowing.
4. What triggers liquidation?
- A/D Ratio falling below 1.2.
5. Is Borrow & Earn available to all users?
- Requires Lv1/Lv2 verification.
6. How does MAX determine asset prices?
- Aggregated data from major global exchanges.
Conclusion
The Borrow & Earn Wallet bridges a critical gap for Taiwanese traders, offering advanced tools while maintaining regulatory compliance. Whether capitalizing on bullish runs or hedging downturns, MAX provides a secure, integrated platform—eliminating the need for costly offshore transfers.
Disclaimer: This content is for informational purposes only. Trading involves risks; investors should conduct independent research.