Bitfinex
Borrow

P2P lending offers a transparent process for both lenders and borrowers thus preventing any funds being created from thin air, which in a broader context, also takes part in the prevention of inflation. For lenders, it offers an attractive reward scheme, whereas, for borrowers, it gives the flexibility to meet their needs better.

You must be a verified user to use the Bitfinex Borrow service. Depending on the level of verification you have completed, different options will become available to you through Bitfinex Borrow. For example, you must be fully verified in order to borrow fiat. To learn more about verification, you can visit our Knowledge Base article.

You may use the funds either on the Bitfinex platform or for any purchase outside of the Bitfinex platform. Bitfinex Borrow lets you borrow funds in the same way as a traditional loan service, where you can use the funds to purchase a new computer, buy a holiday package, or finance a project.

No, if you wish to settle your loan early, you simply move funds to your margin wallet and end the agreement. In the same way, you can also repay in part, which will then decrease your daily interest. However, if you use the loan for less than 1 hour, you have to pay interest for a minimum of one hour.

The amount of borrowed funds differs according to the collateral type, depending on several factors, such as its quality and liquidity. This value is expressed by the initial margin requirement of the underlying margin pair. For example, if you’re using Bitcoin as collateral, you need to maintain the minimum initial margin requirement of 111.11%. So, if you’re borrowing $900, you would deposit $1,000 worth of BTC into your margin wallet as collateral for the loan.

Yes. The amount of the loan is subject to a minimum limit of $175 equivalent for each collateral and borrowed currency pair. The maximum amount you can borrow is $250,000 equivalent across all borrowing in all master and sub accounts.

There is the risk of collateral liquidation if borrowers don’t keep the maintenance margin above the required limit. Borrowers need to consider various factors that could affect their collateral’s value and take necessary actions to mitigate their own risks and prevent liquidation. For additional discussion of risks, see our Risk Disclosure Statement.

With Bitfinex Borrow, you can choose between a variable rate or fixed rate loan. The interest charged for a variable rate loan will change throughout the term of the loan. At the time you start borrowing under a variable rate loan, Bitfinex Borrow will automatically route and execute one or more market order loan transactions on your behalf to obtain the funds you wish to borrow from lenders in the Bitfinex financing order book. Each of those loans will have a set term, however, Bitfinex Borrow will repeat the automatic routing and execution transaction described above on your behalf as those loans expire, until you repay the loan. The rates, payment information and other information reflected above represent an estimate, based on current market conditions. Those values are hypothetical and not guaranteed to be the same as, or reflective of the actual interest rate, payment obligations or other information applicable to a loan you may receive. Those values are provided for information purposes only and solely as a personal reference tool. The interest charged for a fixed rate loan is fixed for the term of the loan. You will agree on a rate and duration for the loan with the lender through Bitfinex Borrow. If you do not repay the fixed rate loan before it expires, when your fixed rate loan expires Bitfinex Borrow will convert it to a variable rate loan by entering into a variable rate loan on your behalf in order to repay the fixed rate loan when it expires.

If you are borrowing on a fixed rate loan, your loan starts as soon as you receive the borrowed funds. You’ll start paying interest right away, whether you leave your funds in your margin wallet or take them out. If you are borrowing on a variable rate loan, your loan does not start until you take funds out of your margin wallet. Until you actually remove funds from your margin wallet, the balance you see is a hypothetical amount that you could potentially borrow based on the collateral you’ve provided and not guaranteed to be the same as, or reflective of the actual amount you are able to borrow when you try to initiate a loan transaction by removing funds from your margin wallet. The amount of potential borrowing is provided for information purposes only and solely as a personal reference tool.

No, you can repay your loan at any time and keep the loan open as long as the margin position remains open. Fixed rate loans will have an expiry date, based on what you agree upon with the lender, but if you choose not to repay the loan before it expires, Bitfinex Borrow will convert it to a variable rate loan by entering into a variable rate loan on your behalf in order to repay the fixed rate loan when it expires.

It is more straightforward than DeFi as you don’t need to open a smart contract in the process. It also allows for more collateral types and enables USD direct loans, which means more use cases can be covered.

If you're unable to return the funds in time, your loan will be automatically renewed when the loan period ends. There’s no additional fee, and by default, the best rate is used with a minimum period. However, we advise borrowers to manage the rates according to their needs and situations for their advantage. For more info on how to set up the borrow rates, read here.