Introduction to Unified Trading VIP Loan

Last updated: 08/22/2026 08:58:00

I. What is Unified Trading VIP Loan

Unified Trading VIP Loan is a large-amount crypto asset lending service provided by the platform for VIP users, institutional users, market makers, etc. Users pledge crypto assets as collateral, and the platform lends funds (such as USDT, USDC, BTC, etc.) to them. Interest is calculated daily, paid monthly, and the principal is repaid at maturity. During the loan period, users can use the borrowed funds and collateral to conduct spot, contract, and leveraged trading within the Unified Trading Account.

This product migrates the VIP loan business from the "Classic Account" system to the "Unified Trading Account (UTA)" system, achieving a unified account system, clearer fund management, and more precise risk control.

II. Core Concepts

1. Account System

Master Account + Sub-accounts: VIP loans are managed with "user groups" as risk units. A user group consists of 1 master account + N sub-accounts, with the LTV, liabilities, and collateral of the user group calculated collectively.
Account Type Restriction: All accounts within a user group must be of the same mode (either all Classic Accounts or all Unified Trading Accounts; in this case, the Unified Account mode), and mixing is not allowed.

2. LTV (Loan-to-Value)

Formula: LTV = Value of Liabilities / Total Value of Collateral Assets

A higher LTV value indicates higher risk. The system will manage user risk according to the following LTV tier values:

LTV Tier	LTV Standard	Description	Consequences of Triggering
Transfer Restriction LTV	80%	Threshold for restricted user asset withdrawals	Withdrawals (including transfers and withdrawals) are prohibited after exceeding this limit
Reduce-only LTV	85%	Threshold for contract reduce-only mode	Cannot open new positions / add to positions / borrow coins; only closing positions and repaying liabilities are allowed The client will first receive an email and a reminder from their account manager to increase margin assets
Liquidation Target LTV	80%	Liquidation disposal target line	Liquidation stops when this LTV is reached
Delayed Liquidation LTV	85%+12H (configurable)	Enter delayed liquidation countdown	Non-tradable restrictions and liquidation are triggered after the delayed liquidation time is exceeded The client will first receive an email and a reminder from their account manager to increase margin assets
Instant Liquidation LTV	90%	Direct liquidation threshold	Non-tradable; liquidation process is triggered immediately upon reaching this level The client will first receive an email and a reminder from their account manager to increase margin assets

III. Lending Process

1. Application and Disbursement

The platform and the user reach a loan agreement and sign the contract.
Operations creates user loan settings in the Admin backend (binding user groups, LTV tiers, loan order information).
The user transfers the margin assets to the corresponding account as required.
Operations clicks "Confirm Loan", and the system performs LTV verification → goes through review and approval → freezes account permissions → the asset management middle platform transfers funds → records liabilities → unfreezes permissions.
Loan successful, interest accrual begins (interest accrual starts the next day, penalty interest is calculated from the day after the overdue date).

2. Repayment method

Repayment type	Trigger condition	Deduction rule
Interest payment at maturity	Repay interest on the 1st of each month	Deduct the corresponding interest for the previous month from the repayment account (funding account / unified account, priority: funding → unified) If overdue, overdue interest will be incurred, and forced liquidation will be triggered after the expected time is exceeded. Overdue means that the quantity of the currency to be repaid held in the user's repayment account is insufficient, requiring the user to trade for the corresponding currency or the system will perform the exchange during forced liquidation.
Forced liquidation for interest settlement	Interest overdue ≥ 5 days	Forced liquidation amount = overdue interest + overdue penalty interest Overdue penalty interest = outstanding interest amount * overdue penalty interest rate * (overdue days / 365)
Repayment at maturity	The loan maturity date is reached	Deduct principal + interest from the repayment account (funding account / unified account, priority: funding → unified) If overdue, overdue penalty interest will be incurred, and liquidation will be triggered after the expected time is exceeded Overdue means that the quantity of the currency to be repaid held in the user's repayment account is insufficient, requiring the user to trade for the corresponding currency or the system will perform the exchange during forced liquidation.
Liquidation	Principal overdue ≥ 5 days	Liquidation amount = overdue principal + overdue penalty interest Overdue penalty interest = amount pending repayment * overdue penalty interest rate * (overdue days / 365)
Early Repayment	Manually initiated by operations	The user actively selects the repayment amount, operations performs configuration operations in the admin backend, and the system calculates default penalty interest (calculated based on agreed repayment date - early repayment date) Early repayment penalty interest = early repayment principal amount * loan interest rate * (early repayment days / 365) * early repayment penalty ratio Early repayment principal amount = early repayment amount - interest already accrued at the time of repayment (currently accrued interest pending repayment + interest that will accrue up to the early repayment date)
Renewal	Manually initiated by operations	Extend the loan maturity date and update the repayment plan
Terminate Loan	Manually initiated by operations	Immediately trigger the liquidation repayment process for this order
Early Liquidation	Manually initiated by operations	Perform liquidation based on user group dimension, specified currency, and liquidation ratio (partial liquidation / full liquidation)

3. Penalty Interest Rules

Interest Penalty: If interest deduction is not completed on the deduction date, it will be calculated from the following day as failed interest deduction amount × penalty interest rate × overdue days / 365.
Principal Penalty: If principal deduction is not completed on the deduction date, it will be calculated from the following day as failed principal deduction amount × penalty interest rate × overdue days / 365.

IV. Liquidation Mechanism

1. Liquidation Detection

The system performs real-time detection (frequency is dynamically adjusted based on risk intervals).
It supports both unified account risk rate triggers and VIP loan LTV triggers, which are processed in chronological order.

2. Liquidation Trigger Process

Pre-liquidation Transfer: Transfer margin currency assets from the funding account to the unified account; if the LTV is < threshold after the transfer, the process is aborted.
Position Freezing: The asset position status is changed to "Liquidating," and all open orders are canceled.
Liquidation Amount Calculation: Calculate the asset amount that needs to be liquidated.
Liquidation: Execute market price liquidation for the corresponding assets or positions.
Repay Liabilities: Use the proceeds from liquidation to repay VIP loan liabilities.
Status Release: Check if the LTV is within a reasonable range and release the frozen status.

V. User-side Function Description

1. Asset Transfer Rules

Transfers between accounts within the VIP loan user group are not restricted by LTV; transfers to accounts outside the group are restricted by LTV:

Source Account Type	Is VIP Loan Account	Destination Account	Transferable Amount
Funding / Margin Account	—	Any	Follow standard account logic
Spot / Futures	Non-VIP loan	Any	Follow standard account logic
Spot / Futures	Classic VIP loan	Within the same group	Transferable amount of this spot / futures account
Spot / Futures	Classic VIP loan	Different groups / Funding / Margin / Unified	min(transferable amount of this spot / futures account, transferable amount of classic VIP loan user group)
Unified account	Unified VIP loan	Unified account within the same group	Transferable amount of unified account
Unified account	Unified VIP loan	Different groups / Funding / Spot / Margin / Futures	min(transferable amount of unified account, transferable amount of unified VIP loan user group)

2. Trading restrictions

Futures leverage limit: The leverage multiple of each futures position ≤ configured upper limit.
Futures reduce-only: When LTV reaches the reduce-only threshold, you cannot increase positions, open positions, borrow coins, or buy coins with low collateral ratios; you can only reduce positions.
Leverage multiple: Follows the online cross/isolated margin leverage multiple limits.

3. User notification

The system sends notifications via internal message / email / SMS in the following scenarios:

Notification Type	Trigger Scenario
Loan disbursement success notification	When disbursement is complete
User margin currency delisting notification	When a margin currency is delisted
Spot trading currency delisting notification	When a spot market trading currency is delisted
Delayed liquidation warning notification	When delayed liquidation is triggered

VI. Account Mode Switching

1. Switching Restrictions

Master + sub-accounts already configured as "VIP Loan Unified Account" in Admin cannot be switched to Classic Account.
To switch, you must first contact customer support to remove the VIP loan configuration.

2. Migrating Classic Account to Unified Account

For existing online users with the "Classic Account + Classic VIP Loan" combination:

The user cancels unfilled orders and closes contract positions.
The R&D backend freezes the account and stops liquidation detection.
The Admin backend reconfigures the user group to "Unified Account + Unified VIP Loan".
Verify that the account type can be switched normally.
Complete the full process verification of coin release, interest and principal repayment, early repayment, forced liquidation, etc.
Open user permissions and restore liquidation detection.

VII. Frequently Asked Questions (FAQ)

Q1: What is LTV? Why did my LTV suddenly increase?

A: LTV = Liabilities / Margin. An increase in LTV is usually due to a drop in the price of margin assets, an increase in liabilities (interest accumulation), or actively transferring assets out of the account.

Q2: What else can I do after the position reduction LTV is triggered?

A: Only "position reduction" operations can be performed: closing contract positions, repaying leveraged debt, and repaying VIP loan debt. Opening positions, increasing positions, and borrowing coins are not allowed.

Q3: Is there a penalty interest for early repayment?

A: Yes. Penalty interest = Early repaid principal × Loan interest rate × (Agreed repayment date - Early repayment date) / 365 × Penalty interest ratio. Operations can configure the penalty interest ratio according to the situation.

Q4: How long after triggering liquidation will I be forcibly liquidated?

A: The timer starts after the LTV reaches the delayed liquidation threshold, and liquidation is triggered only if it continues to exceed the "delayed liquidation time" (default is 12 hours); if the LTV reaches the immediate liquidation threshold, it is triggered immediately.

Q5: How to unfreeze after liquidation?

A: It can be handled by operations in the Admin backend [Liquidation Interception Management] after verification by clicking [Continue Process] or [Unfreeze]; in the event of a negative balance, users can contact operations to go through the [Unfreeze] or [Borrowing for Repayment] process.

Q6: Why was I restricted when transferring out assets?

A: Your LTV has exceeded the "Transfer Restriction LTV" threshold. To control risk, the system will restrict asset transfers. You can lower your LTV by adding margin or repaying part of your debt.

Q7: Can a VIP loan account be switched to a classic account?

A: No. Accounts already configured for Unified Account VIP loans do not currently support switching to classic accounts. If you need to switch, please contact customer service to remove the VIP loan configuration.

Q8: When does interest calculation begin?

A: Interest calculation begins the day after a successful loan (calculated daily). If the loan date is the 15th of the month, the first interest settlement date will be the 1st of the following month.

Q9: What is a "Grace Period"?

A: A grace period is the additional time allowed after the due date (configurable number of days). Interest continues to accrue during the grace period, but liquidation is not triggered immediately. If repayment is not made after the grace period, liquidation will be triggered.

Q10: What happens if there is still debt after liquidation?

A: The account enters a "Negative Balance State" and account permissions are frozen. You may wait for the user to proactively deposit funds to repay the debt, or the platform may proceed with the [Lending Repayment] process through the asset management center.

Q11: Who should I contact if I am interested? A: Please contact the official team: @KuCoin_MM_KA, and we will provide you with professional support and customized solutions.