▶ What are the interest rates for WOO X margin trading?
The daily interest rate for Margin Trading on WOO X is calculated based on the following formula:
- Interest on hour = (Max (Borrowed assets on the hour) + unpaid interest) * Interest rate on the hour.
The interest rate of each token is displayed on the Interest page. It’s possible to check the Current Hourly/Annual Rate and the Estimates.
You can check the interest rates of each token on your Account > Margin&Futures Info > Rate. Also, the interest payment history via the “Payment” tab.
▶ How will WOO X charge the interest when margin trading?
Any negative balance needs to pay interest. If the borrowed token is insufficient, we will use the token with the highest value based on the market price borrowed in each hourly period.
▶ When will WOO X start to calculate the interest?
In WOO X, the mechanism of margin is automatic borrowing. If you enable margin and the buy/sell amount exceeds USDT, the system will automatically borrow the quantity for you. You will be borrowing as you use margin and repay the interest as you borrow from WOO X to minimize your borrowing cost.
For example, suppose you hold 10,000 USDT and 100ETH. At this time, the price of ETH is $2,500, and the price of BTC is $34,000.
- If you want to buy 1 BTC, just place an order to buy directly, and the system will automatically borrow 24,000 USDT for you. Your balance will become -24,000 USDT.
- If you want to sell 200ETH, just place an order to sell 200ETH. At this time, the system has borrowed 100ETH for you, and the available quantity will become -100ETH.
▶ How to repay interest?
When you make a repayment, interest will always be repaid before any principal, according to the order time it is generated.
Auto-Repayment feature enabled: Every 24 hours; the system will automatically repay the accrued interest by default. If the user does not have enough balance of the borrowed token to repay the interest, the system will convert the balance of the token with the highest balance to repay the outstanding interest owed.
Here are the convert rules for repaying interests:
- WOO X will convert the stablecoins first (such as USDT, USDC, and DAI). Then, if there have more than one stablecoin, we will choose the larger balance.
- If no stable coins are available for converting, WOO X will choose the assets by this group order. (It depends on the liquidity of the market)
BTC, ETH, USDC, SHIB, BTC, ETH, XRP, SOL, BNB, ETC, FIL, MATIC, ADA, DOGE
DOT, LINK, ATOM, AVAX, CHZ, LTC, EOS, TRX, NEAR, DAI, APE, FTM, SUSHI, UNI, ENS, GMT, ICP, SAND, AAVE, DYDX, ALGO, XLM, BCH
VET, LDO, MANA, AXS, XTZ, ZEC, HBAR, LRC, CRV, RSR, NEO, GALA, BSV, GRT, YFI, COMP, DASH, RUNE, ZRX, BCH, SNX, ETHW, GAL, 1INCH, WOO, PERP, MKR
OKB, RVN, BIT, STG, IMX, ENJ, CELO, ONE, SRM, KSM, HT, DODO, BAND, RAY, SPELL, YGG, CRO, ONT, LOOKS, QRDO, AURORA, ASD, LUNC
Auto-Repayment feature disabled:
You can choose to repay interest under the Wallet tab manually. There has a “repay” button enabled if you have an interest.
The repayments need to be in the same coin as what you borrowed. If the users do not have enough balance of the borrowed token to repay the interest, the system will let you convert from your account balance to repay the outstanding interest owed.
Note: Interest will be repaid ahead once you have sufficient funds, such as a deposit or buying the token from the market. The system will repay the fund, deduct it from your account, and record it in the interest history.