What is the dynamic interest rate?
The dynamic interest rate is the interest rate for margin loans determined by the match of lending offers in Simple Earn and borrowing needs in the market. Lending offers in the market will be sorted based on their minimum interest rates to find out the single execution interest rate for the past hour.
Rules
Users lend their assets to Simple Earn and make lending offers with preset minimum interest rates. Lenders can receive interest once the lending is matched.
Lending offers in the market will be sorted based on their minimum interest rates to find out the single execution interest rate for the past hour, which is the hourly lending rate.
Formula
Daily Borrowing Rate (Floating) = Hourly Lending Rate × 24 + (Hourly Lending Rate × 24 × Service Fee Rate). The hourly lending rate is the execution interest rate in Lend & Earn.
What is the service fee rate?
The service fee rate is 18% of the hourly lending rate in Simple Earn; if you are a user with VIP tier higher than zero, you will enjoy a discount off. Go to Fee page for more details.
What are the differences for margin loans with dynamic interest rates?
1.The interest is settled every hour instead of every four hours as before, which can reduce the borrowing costs.
2.The interest is dynamic and updated every hour on the hour based on the lending offers and borrowing needs in the market.
3.Interest deduction is executed every hour on the hour based on the loan amount on the hour. If you have no loan amount on the hour, no interest will be charged.
4.No fixed loan term. You can repay your loan anytime.
How to check the current dynamic interest rate?
1.Click “Loan” on top of the Market on the left of the trading page.
2.Check it on the borrowing rate page.
Reminder
As the dynamic interest rate is determined based on the lending offers and borrowing needs in the market, it could fluctuate. Please pay close attention to your positions and margin level to ensure the margin level has no risk as the auto interest deduction may lead to a decline of margin level, which could further trigger liquidation.
Gate reserves the final right to interpret the product.
Disclaimer
The content provided herein is for reference and educational purposes only and does not constitute any financial, investment, trading, or legal advice, nor does it constitute an offer or solicitation to buy or sell any digital assets. Gate makes no express or implied representations or warranties regarding the accuracy, completeness, or timeliness of the information contained herein. Product features, interfaces, rules, and fee structures may be updated or adjusted at any time. Please refer to the latest announcements and the actual information displayed on the Gate platform for the most accurate details.Digital asset investments involve significant risk, and prices may fluctuate substantially. You may lose the entire amount of your investment. Please make decisions cautiously based on your own financial situation and risk tolerance after fully understanding the associated risks. If necessary, you are advised to consult an independent professional financial or legal advisor.
For more information about potential risks, please refer to Gate's Risk Disclosure and User Agreement.
