An indicator to measure the risk of borrowing is calculated as the ratio of the value of the borrowed amount to the market value of the collateral. If the loan pledge rate is high, the financial risk of the loan will also be very high.
The pledge rate formula is as follows:
Pledge rate = loan amount (principal + interest) / mortgage asset price x 100%
Mortgage asset price = number of currencies * index price
At 9:00 am UTC on 2020/06/12, the market price of 1 BTC is equal to 34350 USDT, so 0.004478782 BTC is equal to 153.8461538 USDT,
Staking rate = 100 USDT / 0.004478782 BTC x 100%
= 100 USDT / 153.8461538USDT x 100%
Pledge rate value:
Initial pledge rate: The initial pledge rate is the ratio of the value of the digital currency that determines the assets that can be borrowed to the value of the digital currency of the required pledge.
Pledge rate of replenishment: When the pledge rate reaches the replenishment line, the system will notify the user via email/push/SMS, etc. It is also recommended that the user increase the collateral assets in time to reduce the risk of liquidation.
Pledge rate for liquidation:
CoinBene uses the pledge rate to evaluate the risk level of your mixed margin account. When the pledge rate reaches a certain threshold, your mortgage assets will face liquidation. The collateral will first go through the liquidation system to repay the loan, and if there is any remaining assets after the liquidation, the original margin type will be returned. He will also notify you that you have been liquidated via email/site letter/text message.
When a liquidation occurs, you will be charged a liquidation fee, which is 1% of the borrowed amount.