KuCoin Earn

Crypto Loan Product Description

Last updated: 04/30/2026 07:04:14

KuCoin Crypto Loan Product Description

Product Overview

This crypto loan product offers users flexible asset lending services. Users can pledge multiple crypto assets as collateral while borrowing multiple cryptocurrencies simultaneously. All borrowing relationships are managed in a single integrated collateralized loan position. During the collateral period, the pledged assets continue to generate flexible savings interest, allowing users to achieve both asset appreciation and liquidity access.

Eligibility and Account Security

  • KYC Verification: Users must complete the KYC (Know Your Customer) verification process as required by the platform to activate and use this lending service. This is a fundamental measure to ensure the platform's compliant operation and user account security.

Core Product Features

  • Flexible Multi-Currency Collateral & Borrowing: Supports users in pledging multiple crypto assets as collateral and borrowing multiple cryptocurrencies simultaneously. All borrowing relationships are managed within a single integrated collateralized loan position.
  • Dynamic Interest Rate & Interest Calculation: The lending interest rate for each currency is updated every hour, and interest is calculated and accrued hourly. Interest rates are determined by market supply and demand.
  • Ongoing Yield on Collateralized Assets: Pledged assets continue to earn flexible savings interest during the collateral period, with interest automatically distributed to your funding account.

Collateral and Borrowing Limit Management

To ensure the effectiveness of the platform's risk management and fairness for all users, a multi-tier limit system is established.
Limit Type Description
1. Borrowing Limit (Borrow Side) Each borrowable currency has an individual borrowing limit per user, i.e., the total value cap a single user can borrow for that currency, representing the user's risk exposure.
2. Collateral Limit (Pledge Side) This limit system consists of two dimensions:
a. Currency Collateral Limit: The total value cap set by the platform for each collateral currency across all platform users. This limit is primarily based on the currency's market depth, liquidity, and volatility.
b. Platform Collateral Limit: The maximum collateral amount per user for each individual collateral currency. If a user's holding exceeds this limit, the excess portion will be treated as invalid when calculating the "Maximum Borrowable Amount." However, the full amount of the asset will still be included in the calculation of real-time collateral ratio and liquidation risk.

Risk Control System and Liquidation Mechanism

  • Three-Tier Collateral Ratio Monitoring: The system sets an initial collateral ratio, a warning collateral ratio, and a liquidation collateral ratio to monitor position risk in real time.
Initial Collateral Ratio: The maximum allowable collateral ratio when opening a loan position (e.g., 60%).
Warning Collateral Ratio: When the collateral ratio reaches this level (e.g., 80%), the system will issue a warning.
Liquidation Collateral Ratio: When the collateral ratio reaches this level (e.g., 91%), the system will automatically trigger the liquidation process.
  • Gradual Liquidation: The system will automatically liquidate a portion of the collateral assets until the position's collateral ratio recovers to the warning collateral ratio level. A liquidation fee will be charged for this process.
  • Full Liquidation: If the position value is too small or a shortfall risk occurs, the system may fully liquidate the position.

Example Illustration

Background Assumptions:
  • Assume the platform sets: BTC currency collateral limit = 1,000 BTC; platform collateral limit per user = 100 BTC.
  • User A holds 120 BTC (worth approximately 7.2 million USDT) and wishes to pledge all of it to borrow USDT. The initial collateral ratio for BTC is 70%.
Impact of Limits and Calculation of Trusted Amount:
a. Determining Effective Collateral Amount: User A holds 120 BTC, but the platform collateral limit is 100 BTC. Therefore, only 100 BTC is recognized as effective collateral when calculating the maximum borrowable amount.
b. Calculating Maximum Borrowable Amount: Based on the effective collateral value: 100 BTC × 70% = 70 BTC (equivalent USDT).
Risk Monitoring:
  • Although only 100 BTC is included in the trusted amount calculation, when monitoring the real-time collateral ratio (used for risk warnings and liquidation), the system uses the total market value of all 120 BTC in the user's position as the denominator. This means that the excess collateral portion, while not increasing borrowing capacity, is still exposed to price fluctuation risks.

Fees and Interest Rates

  • Lending Interest Rate: The lending interest rate for each currency fluctuates hourly.
  • Liquidation Fee: If liquidation is triggered, the system will charge a certain percentage of the liquidated asset's market value as a liquidation fee.
  • Savings Yield: Collateral assets earn interest at the flexible savings rate.

Risk Disclosure

  • Market Risk: Severe fluctuations in cryptocurrency prices may cause the collateral ratio to rise rapidly.
  • Platform Limit Risk: Users should be aware that assets held in excess of the platform's collateral limit for a currency cannot increase their trusted borrowing amount, but remain exposed to price fluctuation risks and affect liquidation.
Note: All values in this document (collateral ratios, interest rates, limits, etc.) are for illustrative purposes only. Please refer to the latest published parameters on the platform. Fully understand the product rules and risks before participating.