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How to borrow and lend cryptocurrency with C2C loans on OKEx

2020.12.30 OKEx

A guide for borrowing and lending crypto-based C2C loans on OKEx

Apart from yield farming — popularized by decentralized finance protocols — OKEx continues to offer its users a multitude of passive income opportunities under the OKEx Earn section. One of these products is an open marketplace for C2C loans (aka peer-to-peer loans), where OKEx users can borrow and lend crypto assets between each other on flexible terms.

Compared to a term deposit, a C2C loan gives users more options in terms of investment amounts, redemption dates, loan durations, etc. In this guide, we will walk you through the steps to borrow and lend crypto assets using OKEx's C2C loan product on desktop and mobile devices.

Please note that the C2C loan feature only supports USDT, for now, but support for other digital assets will be introduced in the near future.

Borrow USDT with C2C loan on desktop

Step 1: Go to the Loan section

Go to the OKEx homepage and navigate to "Finance" in the top menu and click on Loan to access the OKEx Loan section.

Step 2: Specify the amount of USDT to borrow

On the OKEx Loan page, specify the amount of USDT you want to borrow under the "Borrow" tab.

Step 3: Start the borrowing process

In order to view the available borrowing periods and the range of estimated annualized percentage yields, click on Borrow.

Step 4: Enter and confirm the details for a C2C loan

You can now enter the amount you want to borrow and choose the initial loan-to-value ratio (10%–65%), which determines the amount of collateral you will be required to deposit. Collateral can be deposited in any of the five supported cryptocurrencies: BTC, ETH, OKB, LTC, BCH, EOS and BSV.

For the loan term, you can choose between three days, seven days, 15 days, 30 days, 60 days and 90 days. Meanwhile, for the minimum investment amount in USDT, the available options are 20, 40, 100 and 200. The minimum investment amount is relevant for lenders who may want to fulfill your loan request. For the daily interest rate, you can choose between 0.01%, 0.02% and 0.03%.

Once done, read the loan agreement and check the box at the bottom before clicking Confirm to proceed.

You will need to click Confirm one more time to post the loan request in the marketplace.

Step 5: Review the order

Once you confirm the loan details, you will see the message "request posted," and you can click My Loans to review your loan request.

When the loan transaction is initiated, the status will switch to "Borrowing."

If you would like to adjust the amount of collateral or repay the loan, you can click the dropdown menu under "Actions" to proceed.

For details of the loan, you can click Details from the dropdown menu under "Actions." This section displays useful information such as your payment schedule.

Borrow USDT with C2C loan on a mobile device

Step 1: Go to OKEx Loan

Scroll down and tap on Loan from the product menu on the OKEx mobile app.

Step 2: Go to the loan borrowing section

The basic functions such as "Account," "Transfer," "My Loans" and "Investment" are displayed in the top bar of the loan section. The loan section also displays the available loans in the lending market by default. To borrow USDT, tap the Loan button at the bottom right corner of the screen to proceed.

Step 3: Choose the collateral unit and loan terms

Choose the unit of collateral from the five supported cryptocurrencies — BTC, ETH, OKB, LTC, BCH, EOS and BSV — and then choose the term of the loan from the available options. Click Next to proceed.

Step 4: Enter and confirm loan details

Enter the loan details such as the loan amount, initial LTV and minimum investment amount for lenders.

Read the loan agreement and check the box at the bottom. Now, click Confirm to proceed.

Step 5: Review the transaction

Once you have initiated the borrowing transaction, you can review it by tapping on My Loans under the top bar of the loan section.

Lending USDT with C2C loan on desktop

Step 1: Subscribe to C2C loan in OKEx Earn

Lending USDT using the C2C loan feature is available via the OKEx Earn section. Hover over "Finance" on the top menu and click on Earn to access it.

Choose USDT as the cryptocurrency in the "Earn" section and go to "C2C Loans" to click on Full List and view all available periods with their respective rates of return. Click Subscribe to proceed.

Step 2: Choose a loan offer to invest in

You can view all the available loan offers with different rates of return, loan periods, minimum and maximum investments, etc. In our example, we will select the loan offer for 50 USDT, with a return rate of 8.03% APY for a period of 90 days. Click Invest to proceed.

Step 3: Enter the subscription amount

For the USDT C2C loan in our example, the minimum amount for subscription is 50 USDT and the maximum amount is 500 USDT. Under the "Subscription Amount" tab, you can enter the amount for subscription in multiples of 50 (e.g., 100 USDT, 150 USDT, etc.).

Step 4: Read the risk control section

Before you proceed, it is advised to read the details under the Risk Control tab. There are three important pieces of information in this section, namely pledged assets, loan-to-value ratio and late interest rates.

"Pledged assets" refers to the collateral held by a lender in return for lending funds. "Collateral value" refers to the value of assets accumulated to secure the loan. When the collateral value falls below the alert level, the borrower will receive a reminder to increase the collateral amount. If the collateral value drops below the liquidation level, and the borrower fails to restore the collateral amount, the loan position will be closed to repay the principal, interest and overdue penalty interest to the investor. As such, the investors will be able to collect their principal even in the event of a liquidation.

"Loan-to-value" is the ratio of a loan to the value of an asset purchased — a high LTV ratio means the loan is riskier. If the LTV reaches the liquidation level, the loan position will be closed.

"Late interest rate" refers to the penalty rate for late interest payments.

After you have acknowledged the risks involved in C2C loans, click Continue to proceed. 

Confirm the details of the C2C loan again and click Subscribe.

Step 5: Review the loan balance

To review your loan balance, go to My Assets using the dropdown "Assets" menu from the top navigation bar. Now, select the Assets tab and go to Loans to review your loan balance in USDT.

You can see that the USDT loan amount is shown in the "Investment" column.

Lending USDT with C2C loan on mobile devices

Step 1: Go to OKEx Loan

Scroll down and tap Loan in the product menu on the OKEx mobile app.

Step 2: Choose a loan to invest in

The loan section displays all the active loan requests. An easier way to invest in loans is to tap Filter on the right side and choose your desired loan term.

Then, tap Invest on the loan you would like to invest in. In this example, we will choose a 90-day loan with an annualized yield of 4.01%.

Step 3: Read the loan details

Read through the investment profile of the loan, including the percentage of funds raised, minimum investment amount, loan schedule, annualized yield and more.

Read the loan agreement and check the box at the bottom before tapping on Investment Confirmation to proceed.

Step 4: Confirm the loan investment

Enter the investment amount for the loan, confirm the details and tap Confirm to proceed.

Step 5: Review your transaction

Once you have initiated the loan investment, you can review it by tapping My Loans under the top bar of the loan section.

More details on OKEx C2C Loans

For more details on interest rate calculations and C2C loan investment limits, check out our C2C loan FAQ.

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Disclaimer: This material should not be taken as the basis for making investment decisions, nor be construed as a recommendation to engage in investment transactions. Trading digital assets involve significant risk and can result in the loss of your invested capital. You should ensure that you fully understand the risk involved and take into consideration your level of experience, investment objectives and seek independent financial advice if necessary.