C2C Loan FAQ

 Trading FAQs    |      2020-06-17

C2C Lending allows users who have idle token balances on Huobi Global to lend their tokens out to C2C borrowers for Margin Trading in return for token interest earned. Users can submit an order to lend at a specified daily interest rate of their choice in the ‘C2C Loan’ section.

1. Profit Mechanism
Huobi provides users an avenue to maximize their return by providing a platform for them to lend tokens on the Margin Trading platform. Through C2C Loan, you can submit lending order requests for pickup by Margin Traders and earn interest when the order is matched.

2. Interest Earning Computation
Actual Token Interest = Loaned Assets * Daily Interest Rate * Loan Duration * (1-Platform Service Fee). Of which, Platform Service Fee is 18%. Interest is computed on an hourly basis. Loan duration < 1 hour will be considered as one (1) hour. Borrower retains the right to initiate early repayment of loan. Actual loan period computed will be based on the actual repayment date.

3. Daily Interest Rate
You can specify the daily interest rate within the available rate range. For example, loan of 10,000UDST with daily interest rate of 0.0210%. Current available daily interest rate range is 0.0100% -0.0980%, subject to change depending on market conditions.

4. What tokens can I lend out?
Current available tokens for outward loan include BTC, USDT. More will be added in future subject to demand.

5. How is the Platform Service Fee collected?
The 18% Platform Service Fee charged against the interest amount, is deducted upon loan repayment.

6. Key Advantages of C2C Lending
(1)Flexible Interest Rate. Users can set the lending rate.
(2)P2P transacting with no middleman costs. Small platform fee rate.
(3)Service is available anytime. with no time limit.

7. Risk Management
(1)Credit risk associated with C2C Loan is managed through the risk rate mechanism within the Margin Trading Service.
(2)Huobi will monitor the risk rate of the C2C Borrower account. In event that the borrower’s account risk rate falls below 110%, Huobi will force liquidate the position to repay the token. What this means is that if the total principal amount, as well as the interest owed to you totals 100 USDT, Huobi will force liquidate his position when his account asset valuation falls below 110 USDT.