Flexible loan services are transforming the way users access liquidity in the digital asset space. Designed for convenience, efficiency, and adaptability, these financial tools empower users to borrow instantly while maintaining control over their portfolios. This guide breaks down everything you need to know about flexible borrowing—how it works, its benefits, risk management, and more—so you can make informed decisions with confidence.
What Is a Flexible Loan?
A flexible loan is a non-term-based borrowing product with variable interest rates. Once approved, funds are disbursed instantly, and borrowers enjoy the freedom to repay at any time. Over 120 digital assets are currently supported as collateral, offering broad accessibility across different investment strategies.
Unlike traditional lending models that lock users into fixed durations, flexible loans provide dynamic financing tailored to fast-moving crypto markets. Whether you're managing short-term cash flow needs or leveraging capital for yield-generating opportunities, this service delivers speed and adaptability.
👉 Discover how flexible borrowing can boost your financial strategy today.
How Can You Use a Flexible Loan?
Flexible loans offer competitive interest rates, helping reduce financing costs while unlocking new opportunities within the crypto ecosystem. By pledging stablecoins or other supported assets, users can access funds without selling their holdings—preserving long-term investment positions.
Common use cases include:
- Participating in Staking programs to earn passive income
- Gaining early access to token launches via platforms like Jumpstart
- Allocating borrowed capital into high-yield stablecoin savings products
- Executing arbitrage or market-neutral trading strategies
This creates a powerful mechanism for earning while borrowing, enabling smart capital allocation without exiting bullish market positions.
Flexible Loan vs. Fixed-Term Loan: Key Differences
Understanding the distinctions between flexible and fixed-term borrowing helps users choose the right product for their goals.
Supported Cryptocurrencies
Fixed-term loans currently support a limited selection: USDT, BTC, ETH, OKB. In contrast, flexible loans support over 20 borrowable assets—with ongoing expansion—giving users greater choice and flexibility.
Interest Calculation
- Fixed-term loans: Feature predetermined interest rates and repayment schedules. Rates remain unchanged for the loan duration.
Flexible loans: Interest rates update every hour and are calculated hourly based on the current annualized rate. The formula used is:
Hourly Interest = (Loan Principal + Accrued Interest) × Current Annual Rate / 365 / 24
Interest accrual begins after a 5-minute confirmation window, and compound interest is applied continuously during active borrowing periods.
Repayment Rules
- Fixed-term loans: Require repayment at maturity. Early repayment may incur penalties.
- Flexible loans: Allow full or partial repayments at any time—with no additional fees.
Initial Collateral Ratios
- Fixed-term loans: Initial collateralization ranges from 60% to 70%, depending on the asset.
- Flexible loans: Maintain a standard initial collateral ratio of 65%.
This balance ensures both accessibility and risk mitigation for lenders and borrowers alike.
How Is Interest Calculated on Flexible Loans?
Interest is recalculated hourly using real-time market conditions. The compounding nature of the calculation means accrued interest itself earns interest over time—emphasizing the importance of monitoring your position regularly.
Because rates fluctuate hourly, users benefit from transparent pricing tied directly to market supply and demand dynamics. Since borrowed funds originate from the Savings product pool, interest aligns closely with prevailing yields in that ecosystem.
Where Does the Borrowed Capital Come From?
The digital assets you borrow through flexible loan services are sourced from the platform’s Savings program—where users deposit idle funds to earn yield. This interconnected system allows efficient capital recycling: savers earn returns, borrowers gain liquidity, and the platform maintains balanced risk exposure.
Interest rates adjust hourly based on utilization levels within this pool, ensuring fair pricing under varying market conditions.
👉 See how seamless borrowing integrates with earning opportunities across platforms.
Can You Make Partial Repayments?
Yes. Flexible loans support both partial repayments and full settlements at any time. When making a partial payment:
- The system automatically applies funds first toward accrued interest
- Remaining amounts reduce the principal balance
You can manage repayments directly from the loan details page by selecting the “Repay” option—offering full control with minimal friction.
Can You Adjust Your Collateral?
Absolutely. Users can modify their pledged assets anytime based on risk tolerance or portfolio changes. This feature allows proactive risk management—such as swapping volatile tokens for more stable ones during turbulent markets.
To adjust collateral, simply navigate to your loan details and click “Adjust Collateral.” Real-time updates reflect changes in your collateral ratio immediately.
What Is the Collateral Ratio?
The collateral ratio measures the relationship between:
- The value of borrowed assets (including accrued interest)
- The total market value of pledged digital assets
It's calculated as:
Collateral Ratio = (Loan Amount + Interest Owed) / Value of Pledged Assets
The initial collateral ratio (typically 65%) sets the minimum required equity when opening a position. As market prices shift, this ratio changes—impacting your loan’s health and liquidation risk.
What Happens When My Collateral Ratio Increases?
Market downturns or asset depreciation can cause your collateral ratio to rise:
- If it exceeds the warning level, you'll receive a notification prompting you to add more collateral (a "margin call").
- If it reaches the liquidation threshold, the system will automatically sell part or all of your pledged assets to repay the outstanding debt.
Timely monitoring helps avoid involuntary liquidations—even small top-ups can significantly extend your buffer zone.
Is Remaining Equity Returned After Liquidation?
In the event of forced liquidation, any residual funds after repaying the loan are transferred to the platform’s risk reserve fund rather than being returned to the user. This fund protects against systemic shortfalls during extreme market events.
While this policy prioritizes platform stability, it underscores the importance of proactive risk management by borrowers.
How Are Liquidation Gaps (Negative Balances) Handled?
During periods of extreme volatility, rapid price movements may prevent timely liquidation or result in proceeds insufficient to cover debts—known as underwater positions or "negative balances."
To address this:
- The platform first uses its risk provision fund to absorb losses
- If reserves are inadequate, the platform retains the right to pursue further recovery from the borrower
This safeguards other users’ funds and maintains overall ecosystem integrity.
👉 Learn how advanced risk controls protect borrowers and lenders in volatile markets.
Frequently Asked Questions (FAQ)
Q: Can I borrow multiple cryptocurrencies simultaneously?
A: Yes, you can open multiple flexible loan positions across different supported assets, each managed independently with its own collateral and interest tracking.
Q: Are there any hidden fees for using flexible loans?
A: No. There are no origination fees, early repayment charges, or hidden costs. You only pay interest based on actual usage and hourly rates.
Q: How often are interest rates updated?
A: Rates are refreshed every hour, reflecting real-time supply and demand in the underlying savings pool.
Q: What happens if I ignore a margin warning?
A: Failing to act after a margin alert increases liquidation risk. If prices continue moving against your position, automatic liquidation will occur without further notice.
Q: Can I use newly acquired assets as additional collateral?
A: Yes. You can deposit new or existing holdings into your loan position at any time to improve your collateral ratio and reduce risk.
Q: Is my personal data secure when applying for a loan?
A: All user data is encrypted and handled according to strict privacy protocols. No third parties have access to your financial information or borrowing activity.
Core keywords integrated throughout: flexible loan, collateral ratio, interest calculation, digital asset borrowing, hourly interest rate, partial repayment, adjust collateral, liquidation risk