**Learn About Coin Lending - The Optimal Opportunity to Maximize Your Cryptocurrency Assets**

**What is Coin Lending?**

Coin lending is a financial service that allows you to use your owned cryptocurrencies to borrow other types of coins. The mechanism works as follows: you deposit a certain amount of Token A as collateral, and from there, you can borrow a corresponding amount of Token B, with an obligation to pay interest within a specified period.

This model enables users to maximize the value of their existing holdings without selling, opening up new trading and investment opportunities. Unlike traditional loans, CeFi (platforms) coin lending typically offers advantages such as stable interest rates, simpler processes, no on-chain gas fees, and higher security.

**Supported Coins for Collateral and Borrowing**

Currently, coin lending platforms support a range of popular assets including Bitcoin (BTC), Ethereum (ETH), Tether (USDT), and many other coins. However, there is an important limitation: you cannot use BTC to borrow BTC, or ETH to borrow more ETH. This principle ensures the safety and risk management of the system.

The minimum borrowing amount is usually set at 200 USDT (based on the value of the borrowed asset relative to USDT), with a maximum limit depending on your account level or available coin funds for borrowing.

**LTV Ratio - A Key Indicator in Coin Lending**

Loan-to-Value Ratio (LTV - Loan-to-Value) = Loan amount ÷ Collateral value. This is one of the most important risk indicators you need to understand.

This ratio is not fixed but constantly changes according to asset price fluctuations and interest accrual. To control risk, platforms set three different LTV thresholds:

- **Initial LTV**: Determines the maximum borrowing limit. For example, if the initial LTV of BTC is 65%, collateralizing 1000 USDT worth of BTC will allow borrowing up to 650 USDT.
- **Margin Call LTV**: When LTV approaches this threshold, the system will alert you to add more collateral due to increased risk.
- **Liquidation LTV**: If LTV exceeds this threshold, the collateral will be automatically liquidated to protect the loan.

**Comparison of CeFi Coin Lending and DeFi Lending**

| **Criteria** | **Coin Lending (CeFi)** | **DeFi Lending** |
|---|---|---|
| **Interest Rate** | Fixed (term) | Variable (flexible) |
| **External Address** | Not required | Required |
| **Loan Process** | Simple (off-chain) | Complex (on-chain) |
| **Gas Fees** | Not charged | Mandatory |
| **Risks** | Operational risks | Smart contract, Oracle risks |
| **Identity Verification** | Yes | No |

CeFi coin lending is suitable for those who prefer a simple and transparent process, while DeFi lending offers higher decentralization but is more complex.

**Interest Calculation and Liquidation Risks**

Interest formula: **Interest = Loan amount × (Daily interest rate ÷ 24) × Loan hours**

Interest is calculated hourly with a minimum accrual cycle of 1 hour. Each hour, the accrued time increases by 1 hour, causing your LTV to continuously change.

**When does liquidation occur?**

Liquidation is triggered when LTV exceeds the liquidation threshold. This can happen when:
- The collateral price drops
- The loan value increases due to interest accrual

During liquidation, the system automatically converts 50% of the collateral value into the borrowed coin at the current spot price until LTV returns below the initial level. If the remaining collateral after liquidation ≤ 100 USDT, the entire position is liquidated. A fee of 2% is charged on the liquidation amount.

**How to Use Borrowed Assets**

Once you receive the loan, you have full discretion on how to use it:
- Trading on spot markets
- Participating in earn/staking products
- Withdrawing from the platform
- Or other uses

However, your collateral assets will be locked during the loan period to ensure the safety of the loan.

**Loan Process Step-by-Step**

1. Access the coin lending section on the platform
2. Choose the coin you want to borrow
3. Set the desired loan term
4. Select a coin from your spot wallet as collateral
5. Review details: interest rate, initial LTV, margin call LTV, liquidation LTV
6. Confirm registration

After confirmation, the collateral is locked into the loan, and the borrowed funds are automatically released into your account.

**How to Minimize Liquidation Risks**

- Keep LTV low by adding more collateral
- Repay part of the loan to reduce debt
- Continuously monitor price movements and LTV ratios
- Avoid waiting until margin call warnings appear

Coin lending is a powerful tool to optimize assets, but it requires careful risk management. By understanding the mechanisms and risk thresholds, you can effectively leverage this service to grow your investment portfolio.