When borrowing, you need to fill in the amount to borrow in [I want to borrow] box. Then, click [Calculate] to have min collateral amount counted.
You should fill in the greater amount of collateral to collateralize. This aims to decrease the risk of Stop out, a result of small collateral.
- The exchange rate is 1FXCE = 0.198 USDT
- I want to borrow 1 000 USDT
- Based on the LTV 80%, the min collateral calculated is 6313.14 FXCE
- I collateralized 6313.14 FXCE
- This loan is set with the Stop out level = 10%
- So, as the formula above, if the exchange rate doesn't change (still 1FXCE = 0.198 USDT)
- If the value of the total loan amount (including principal & interest) >= 1125 USDT -> reach the Stop out level.
1. Loan amount at Stop out level is calculated based on the present exchange rate.
2. Loan amount at Stop out level is influenced by the collateral value.