C2C Margin is a sub-module of Huobi C2C Lending service, which is an important development and supplement to the Huobi Margin product, aiming to better meet the needs of our users. C2C Lending provides Margin Traders on Huobi Global“C2C Margin” section with an option to borrow at a potentially cheaper interest rate (lowest 0.0200%) no minimum HT holding requirement.
Please find further detail information as below:
I. What is C2C Lending?
C2C Lending Service on Huobi Global provides a matching platform for C2C token lenders and borrowers. C2C Lending Service comprises of two sub-modules which are C2C Lending and C2C Margin (Borrow). C2C Lending allows users who have idle token balances on Huobi Global to submit order requests to lend their tokens out at a pre-defined daily interest rate. Users who have token borrowing needs can select which orders to accept and pay lenders the pre-agreed token interest.
II. What is the difference between C2C Margin vs Isolated and Cross Margin Trading
1. C2C Margin trading rules are no different from those of Isolated and Cross Margin Trading.
2. Tokens borrowed via C2C Lending are directed provided by other Huobi users, whilst tokens borrowed under Isolated and Cross Margin are provided by Huobi.
3. C2C Margin interest rates can vary. Tokens can be borrowed at a minimum interest rate of 0.0200%. There is no minimum HT holding requirement to do so.
III. Is there a Repayment Period?
Yes, all tokens borrowed under C2C Margin has a repayment period. Tokens can be borrowed up to a maximum of 30 days. After 30 days, the system will automatically close your corresponding position, return the borrowed tokens and pay the corresponding token interest owed.
IV. Is There An Early Redemption Fee?
No. There is no early redemption fee. Borrowers can repay their token loans early without incurring a fee. Actual interest charged will be based on actual loan period. Nevertheless, loan periods shorter than < 1 hour will be considered as one (1) hour.
V. Interest Computation
1. You only need to pay the interest on the loan, with other fee payments required.
2. Actual interest charged will be based on your loan interest fee rate and actual loan period. Nevertheless, loan periods shorter than < 1 hour will be considered as one (1) hour. For details, see here:
3. Interest payment methods via Tiered Fee, HT and Point Card deduction are all not supported.
VI. Forced Liquidation Mechanism
C2C Margin shares the same Forced Liquidation mechanism as Isolated and Cross Margin. In event that the borrower’s account risk rate falls below 110%, Huobi will force liquidate the position to repay the lender.
VII. Risk Rate
Risk Rate computation methodology applied is the same as the calculation method of the risk ratio of the as Isolated and Cross Margin.
Risk Rate = Total Asset (Tradable Balance + Loaned Amount) / (Loaned Amount + Interest Payable) x 100%
Note: Margin Trading allows users to increase their investment exposure given a limited base principal to enjoy multiple returns. However, you may also face the risk of multiplied losses. Given the great price volatility of digital assets, please be sure to carefully study the potential risks from margin trading and make prudent investment decisions.
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