Binance Flexible Loan is a cryptocurrency lending service that allows you to borrow other cryptocurrencies by staking your existing assets.
This guide covers:
✔️ What is Binance Flexible Loan?
✔️ Supported cryptocurrencies
✔️ Interest rate calculations
✔️ Loan-to-Value (LTV) ratios
✔️ Step-by-step borrowing instructions
What Is Binance Flexible Loan?
Binance Flexible Loan lets you:
- Collateralize your crypto (e.g., BTC, ETH)
- Borrow other cryptocurrencies (e.g., USDT, BNB)
- No fixed term: Repay anytime
👉 Learn how collateralized loans work
Key Benefits:
- Funds can be used for trading, yield farming, or withdrawals
- Collateral earns interest via Binance Earn (offsetting borrowing costs)
When to Use Binance Flexible Loan?
1. Participating in Exchange Events
Example: Borrow BNB for Launchpool/Megadrop without selling your holdings.
2. DeFi Yield Opportunities
Borrow tokens for liquidity mining if yields outweigh borrowing costs.
3. Arbitrage Strategies
Capitalize on price discrepancies across exchanges.
Caution: Always ensure potential returns exceed interest expenses.
Supported Cryptocurrencies & Interest Rates
Borrowable Assets
Includes major coins (BTC, ETH), stablecoins (USDT), and popular altcoins.
🔗 Full list here
Interest Calculation
- Variable rates: Updated per minute based on market conditions.
Formula:
Minute Interest = (Loan Amount × Annual Rate) ÷ 365 ÷ 24 ÷ 60
Example: Borrowing 1,000 USDT at 5% APR costs ~0.137 USDT/day.
Loan-to-Value (LTV) Ratios & Collateral
LTV Thresholds
| Level | Ratio | Action Required |
|-------|-------|------------------|
| Initial | 78% | Max borrow limit |
| Margin Call | 85% | Add collateral/repay |
| Liquidation | 91% | Position closed (+2% fee) |
Tip: Maintain LTV <70% to avoid liquidation risks.
Recommended Collateral
Stablecoins or blue-chip cryptos (lower volatility).
How to Borrow in 2 Steps
Step 1: Access Loan Page
- Open Binance App → Finance → Loans.
Step 2: Set Loan Terms
- Select collateral (e.g., BTC) and borrow asset (e.g., USDT).
- Confirm LTV (max 78%), interest rate, and liquidation price.
Funds arrive in Spot Wallet instantly.
FAQ: Repayment & LTV Management
Q: How to repay?
A: Navigate to Active Loans → Repay (using borrowed asset or collateral).
Q: How to adjust LTV?
A: Add more collateral or repay partial loans.
Q: Is interest compounded?
A: Yes, added to principal every minute.
Pro Tips for Safe Borrowing
- Start small to test the process.
- Monitor LTV during market volatility.
- Use loans for high-conviction opportunities only.
👉 Explore advanced crypto strategies
Disclaimer: Crypto loans carry risks. Never invest more than you can afford to lose.
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- Binance Flexible Loan
- Cryptocurrency borrowing
- LTV ratio
- Interest rate calculation
- Collateralized loans
- Crypto arbitrage