Payment of Hourly Fees

To maintain a loan, borrowers must ensure they have sufficient funds in their wallet (stablecoins) to cover hourly fees. These fees accumulate over time and are tracked by the system.

If a borrower fails to repay them, and the unpaid fees reach 90% of the current USD value of the collateral, the platform will automatically sell the collateral to recover the outstanding amount.

How it Works?

  • Hourly fees are charged on all active loans.

  • These fees accumulate if not paid directly from the user’s wallet.

  • Once unpaid fees = 90% of the current market value (USD) of the collateral, the collateral is sold entirely to cover the outstanding balance.

  • The borrower keeps the full USDT loan, but forfeits the collateral.

Example:

  • A user deposits 1 BTC as collateral when BTC = $100,000 and borrows the full amount.

  • If BTC later drops to $50,000, then 90% of $50,000 = $45,000 becomes the threshold.

  • If unpaid hourly fees reach $45,000, the platform will sell the BTC, even though the user borrowed $100,000.

  • The borrower still keeps the $100,000 (minus entry fee), but loses the BTC.

How to Avoid Automatic Collateral Sale

Users can always prevent liquidation by:

  • Adding more collateral to increase the buffer.

  • Repaying accumulated fees to reduce the fee-to-collateral ratio.

Alternatively, the borrower may choose not to repay the loan and keep the full 100% LTV amount in USDT, effectively treating it as a sale of their collateral.

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