Over the counter (OTC) Lending – Bybit Official Help

What is Over-the-counter (OTC) lending?

Over-the-counter (OTC) lending is provided to meet the funding needs of institutional traders on the Bybit platform. It will improve the capital usage efficiency, thereby increasing the platform's market liquidity.

There are 3 Product available for Institutional traders' selection:

OTC Lending-3 times Leverage - Spot
OTC Lending-3 times Leverage - Spot + Derivatives
OTC Lending-5 times Leverage - Spot

Product Introduction

Product name

OTC Lending-3 times Leverage-Spot

Client

Institutional traders

Loan asset

USDT

Loan amount

2 times of the Spot account equity.

Collateral assets

Assets in Spot account (Main & Sub account)

Loan period

Selectable between 1 to 12 months

Application Rule

Offline application

Interest calculation frequency

Daily interest

Repayment rules

Expiry date:
To be discuss and agree upon in the offline contractual agreement

Supported repayment methods:

Normal repayment (Repayment on expiry date)
Late repayment (Offline application before the repayment date)
System liquidation repayment (Remarks: LTV>=90%, the system triggers the liquidation repayment to reduce the LTV to below 75%)
Prepayment
Early Settlement

Risk Management

Risk management explanation:

According to the loan-to-value ratio (LTV) is use for risk management, the calculation formula is as follows:

LTV = loan/spot account assets

Loan refers to: remaining loan = remaining outstanding principal + remaining outstanding interest

Spot account assets = SUM (Asset Type * index price) + USDT available + USDT frozen

*The index price uses a weighted average algorithm, and the price data is extracted from the following mainstream exchanges (Bybit, CoinbasePro, Huobi, Binance, GateIo, Okex, Bitfinex, FTX, Kucoin)

Risk management transaction restriction explanation:

LTV	Trading restrictions	Remark
>=66.66%	Withdrawal restricted	Refers to restriction of the withdrawal from the pledge account
>=66.66%	Spot account Asset transfer restricted	Refers to restriction of the transfer from the pledge account to other account
>=83.33%	Spot buy order restricted	Refers to restriction of the Spot buy order placement from the pledge account
>=90%	Spot sell order restricted	Refers to restriction of the Spot sell order placement from the pledge account

Business Contact*

institutional_services@bybit.com

Product name

OTC Lending-3 times Leverage - Spot+Derivatives

Client

Institutional traders

Loan asset

USDT

Loan amount

2 times of the (Spot account equity + USDT equity from derivative account of main account - bonus).

Collateral assets

Assets in Spot account (Main & Subaccount)， USDT equity in Derivative account (only Main account)

Loan period

Selectable between 1 to 12 months

Application Rule

Offline application

Interest calculation frequency

Daily interest

Repayment rules

Expiry date:
To be discuss and agree upon in the offline contractual agreement

Supported repayment methods:

Normal repayment (Repayment on expiry date)
Late repayment (Offline application before the repayment date)
System liquidation repayment (Remarks: LTV>=85%, the system triggers the liquidation repayment to reduce the LTV to below 75%)
Prepayment
Early settlement

Risk Management

Risk management explanation:

According to the loan-to-value ratio (LTV) is use for risk management, the calculation formula is as follows:

LTV = loan/(spot account assets + Derivative account USDT equity)

Loan refers to: remaining loan = remaining outstanding principal + remaining outstanding interest

Spot account assets = SUM (Asset Type * index price) + USDT available + USDT frozen

Derivatives account assets = Main account Derivatives USDT equity value - Bonus

*The index price uses a weighted average algorithm, and the price data is extracted from the following mainstream exchanges (Bybit, CoinbasePro, Huobi, Binance, GateIo, Okex, Bitfinex, FTX, Kucoin)

Risk management transaction restriction explanation:

LTV	Trading restrictions	Remark
>=66.66%	Withdrawal restricted	Refers to restriction of the withdrawal from the pledge account
>=66.66%	Spot account Asset transfer restricted	Refers to restriction of the transfer from the pledge account to other account
>=80%	Spot buy order restricted	Refers to restriction of the Spot buy order placement from the pledge account
>=80%	USDT perpetual contract position opening restricted	Refers to restriction of USDT perpetual position opening from the pledge account
>=85%	Spot sell order restricted	Refers to restriction of the Spot sell order placement from the pledge account

Maximum leverage allowed for USDT perpetual contract: 3x multiplier

Explanation for USDT transfer from spot account (Main) to derivative account (Main):

1. Transferable USDT loan = loan amount * 25%

2. Transferable initial USDT principal in Spot account (Main) = all

Business Contact*

institutional_services@bybit.com

Product name

OTC Lending-5 times Leverage-Spot

Client

Institutional traders

Loan asset

USDT

Loan amount

4 times of the Spot account equity.

Collateral asset

Assets in Spot account (Main & Sub account)

Loan period

Selectable between 1 to 12 months

Application Rule

Offline application

Interest calculation frequency

Daily interest

Repayment rules

Expiry date:
To be discuss and agree upon in the offline contractual agreement

Supported repayment methods:

Normal repayment (Repayment on expiry date)
Late repayment (Offline application before the repayment date)
System liquidation repayment (Remarks: LTV>=95%, the system triggers the liquidation repayment to reduce the LTV to below 85%)
Prepayment
Early settlement

Risk Management

Risk management explanation:

According to the loan-to-value ratio (LTV) is use for risk management, the calculation formula is as follows:

LTV = loan/spot account assets

Loan refers to: remaining loan = remaining outstanding principal + remaining outstanding interest

Spot account assets = SUM (Asset Type * index price) + USDT available + USDT frozen

*The index price uses a weighted average algorithm, and the price data is extracted from the following mainstream exchanges (Bybit, CoinbasePro, Huobi, Binance, GateIo, Okex, Bitfinex, FTX, Kucoin)

Risk management transaction restriction explanation:

LTV	Trading restrictions	Remark
>=80%	Withdrawal restricted	Refers to restriction of the withdrawal from the pledge account
>=80%	Spot account Asset transfer restricted	Refers to restriction of the transfer from the pledge account to other account
>=90%	Spot buy order restricted	Refers to restriction of the Spot buy order placement from the pledge account
>=95%	Spot sell order restricted	Refers to restriction of the Spot sell order placement from the pledge account

Business Contact*

institutional_services@bybit.com

* OTC lending support is only available via the listed business contact email. Bybit livechat will not be able to provide support over OTC matters.

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