KuCoin Crypto Loan Is Now Live: Borrow Flexibly While Eligible Collateral Continues Earning Hold to Earn Yield

 

KuCoin is pleased to announce the launch of Crypto Loan, a flexible and efficient digital asset borrowing service.

What Is Crypto Loan?

Crypto Loan allows users to use multiple assets as collateral to borrow other assets. For example, users can pledge digital assets such as BTC or ETH as collateral to borrow assets like USDT or USDC for trading or investment.

All collateral assets and borrowed assets will be managed under one integrated Crypto Loan position. During the collateral period, eligible collateral assets can continue earning Hold to Earn yield, helping users achieve both asset growth and liquidity access.

 

Product Highlights

1. Multi-Asset Collateral and Borrowing

Crypto Loan supports multiple crypto assets as collateral and allows users to borrow multiple crypto assets at the same time. All borrowing relationships are managed under one integrated position, making it easier for users to flexibly manage their funding needs.

2. Eligible Collateral Can Continue Earning Hold to Earn Yield

During the collateral period, eligible collateral assets can continue earning Hold to Earn yield. The yield will be automatically distributed to users’ Funding Accounts, allowing assets to keep generating returns while being used as collateral for Crypto Loan.

Please note: To ensure your collateral continues earning Hold to Earn yield during the collateral period, please enable Hold to Earn before using Crypto Loan. Click to enable Hold to Earn.

3. Dynamic Borrowing Interest Rates and Hourly Interest Calculation

Borrowing interest rates for each asset are dynamically adjusted based on market supply and demand and updated hourly. Borrowing interest is calculated and accrued on an hourly basis. Users can view supported assets, borrowing interest rates, and related data on the Crypto Loan page in real time.

4. Integrated Crypto Loan Position Management

Users’ multi-asset collateral and borrowed assets will be managed under one integrated Crypto Loan position. The system will monitor the LTV ratio, risk warnings, and liquidation risk based on the overall position in real time.

5. Multi-Level Risk Control

Crypto Loan uses Initial LTV, Warning LTV, and Liquidation LTV to monitor position risk in real time. When the LTV reaches the warning level, the system will issue a risk warning. If the LTV reaches the liquidation threshold, the system will automatically trigger the liquidation process.

 

Supported Assets and Launch Availability

Crypto Loan currently supports the following borrowable assets and collateral assets:

Crypto Loan is now available on the KuCoin App. The Web version will be launched soon. Stay tuned!

 

LTV Ratio and Risk Control

The LTV ratio shows how much you have borrowed compared to the value of your collateral and reflects the current risk level of your position.

LTV Ratio = Total Borrowed Asset Value ÷ Collateral Margin Value × 100%

Collateral Margin Value = Collateral Amount × Index Price × Tiered LTV Ratio

To help users manage risk, the system defines three key thresholds:

When the LTV reaches the liquidation threshold, the system will sell part of the collateral and buy back the borrowed assets to repay the loan until the LTV returns to the warning level.

Your position may be fully liquidated if its value is too low or if there is a risk of negative equity. A liquidation fee will be charged based on the value of liquidated assets. See the asset-specific liquidation fee rate for details.

 

How to Use Crypto Loan

1. Open the KuCoin App;

2. Complete KuCoin KYC Verification;

3. Go to the homepage, tap “More”, and enter the Crypto Loan page under the Finance section;

4. To ensure your collateral continues earning Hold to Earn yield during the collateral period, please enable Hold to Earn for the corresponding asset first. Click to enable Hold to Earn;

5. Select the supported collateral asset and borrowable asset;

6. Enter the collateral amount and borrowing amount;

7. Confirm the loan details to complete borrowing;

8. Repay your loan or redeem collateral based on your needs.

Borrowed assets will be credited to your Funding Account. When the LTV remains within a safe range, you can redeem part or all of your collateral.

 

Thank you for your support!

 

Risk Warning:

Crypto Loan involves market risk, liquidity risk, interest rate risk, and liquidation risk.

Digital asset price volatility may cause the LTV to rise quickly, triggering risk warnings or liquidation. In extreme market conditions, liquidation orders may experience significant slippage due to insufficient liquidity. Floating interest rates may also increase borrowing costs.

To reduce risk, users should manage their borrowing size reasonably and avoid excessive leverage; monitor their LTV regularly and add collateral or repay when needed; and fully understand and comply with the platform’s borrowing limits and collateral limit rules.