Product

Institutional Loans: 5x Leverage (UTA) 

Target Audience 

Institutional Traders 

Borrowable Assets

USDT and  USDC.

Loan Disbursement 

The loan will only be disbursed to the specified risk unit UID and can only be directed to UTAs.

During disbursement, a portion of the funds will be collected as a reserve. This reserve amount will be transferred to the platform's system account and cannot be traded or withdrawn, to prevent margin shortfalls in institutional loans.

For example, if an institution has a margin of 270,000 USDT, a reserve ratio of 2%, and a leverage of 5x, the available loan amount would be 1,000,000 USDT. A reserve of 20,000 USDT will be frozen in the system account, making the trader's total assets 1,250,000 USDT with a current LTV of 80%.

Repayment

Repayment can only be processed within the UTA of the specified risk unit UID. 

Once the institution fully repays the loan, all reserves held in the system account will be released back to the UTA of the institution's specified risk unit UID.

Max. Borrowing Amount 

Please reach out to your institutional account manager to find out more. 

Supported Account

• UTA supported

• Third-party custodian accounts and its subaccounts are not supported. 

Loan Leverage

5x

Min. Required Borrowing Amount

1,000,000 USDT or an equivalent value

Collateral Assets 

Collateral Assets refer to the total USDT amount of all Institutional Loans collateral in the user’s UTA. 

Note: 

When converting your assets into non-margin assets or margin assets with a lower collateral value ratio, you may experience immediate liquidation upon order placement if the LTV exceeds the liquidation ratio. We strongly advise managing your risk appropriately to avoid such an event. You can refer here for the list of the supported margin assets.

Click here to find out more about the margin assets supported under UTA and the collateral value ratio of different coins. 

Application Rules 

Please contact an Institutional Representative to apply, OR

You can send an email to institutional_services@bybit.com 

Loan Disbursement Account

Risk Unit Specified Main UID

Repayment Rules 

Repayment Date

The repayment date is mutually agreed upon offline and documented in the contract agreement.

Repayment Scenarios

1. Scheduled Repayment: 

You have the option to repay your loans on the agreed due date.

2. Early Repayment: 

There's also the flexibility for early repayment if desired. 

Risk Management

Risk Unit

• A Risk Unit refers to a group of bound UIDs.

• In a set of Main and Subaccounts, different UIDs can be assigned to different risk units, but one (1) UID can only link to one (1) risk unit. 

• A risk unit can bind multiple UIDs, but these UIDs must come from the same set of Main and Subaccounts. 

• A risk unit must specify one (1) UID within the risk unit as the representative ID, which can be either the Main or Subaccounts UID. 

• The loans under a specified UID for the risk unit must be fully repaid before it can be unbound.

• Currently, we support binding UID to a risk unit through OpenAPI, please refer to the API documentation.

LTV 

The LTV for an Institutional Loans Risk Unit is calculated as follows: 

LTV Ratio = (Outstanding Loan Principal + Outstanding Loan Interest) / Total Assets 

Where, 

• Outstanding Loans Principal = Total amount of all remaining outstanding loans in the Risk Unit (converted to USDT)

• Outstanding Loans Interest = Total amount of all outstanding interest accrued from loans in the Risk Unit (converted to USDT)

• Total Asset Value = Total collateral assets in the risk unit (converted to USDT) + Total collateral negative equities under UTA in the Risk Unit - the value of the long option in cross-margin mode

• You can inquire and monitor real-time changes in LTV using OpenAPI. (LTV inquiry).

To learn more about how to calculate LTV, please refer to the example at the bottom of the article. 

The calculation of IMR and MMR under UTA are based on each UID and are independent of the LTV ratio for Institutional Loans. Learn more about IMR and MMR in Trading Rules: Liquidation Process (Unified Trading Account).

Trading Restriction

LTV ≥ 80%

• Transfer Restriction: It is prohibited to transfer the collateral assets in the UTA within the risk unit to other accounts, including the Funding Account or Inverse Derivatives Account within the risk unit or all accounts not within the risk unit.

• Your maximum transferable amount is determined by your LTV. When your LTV is < 80%, you can transfer the excess collateral assets within the risk unit to outside the risk unit, provided that your LTV must be ≤ after the transfer.

LTV ≥ 85%

Transactions that will increase order costs in UTA will be restricted, including:

• Spot Trading

• USDT Perpetual

• USDC Perpetual & Futures

• USDC Options 

LTV ≥ 90%

• Spot Trading restricted: Spot buy and sell orders in UTA will be restricted.

• USDT Perpetual: Open and close orders in UTA will be restricted. 

• USDC Perpetual & Futures: Open and close orders in UTA will be restricted. 

• USDC Options: Open and close orders in UTA will be restricted. 

Liquidation

When the LTV ratio reaches or exceeds 90%, here's how the repayment process works:

1. Canceling Active Orders: Active orders for Spot, USDT Perpetual, USDC contracts, and USDC Options under UTA are canceled.
   
   

2. Transferring Available Assets: If your UTA transferable assets can reduce the account's LTV to below 85% after repayment, the system will automatically transfer UTA available assets for repayment to end the liquidation.
   
   

Otherwise, the following measures will be taken:

3. Asset Conversion for Repayment: Transfer collateral held in the UTA for asset conversion repayment. A 2% conversion fee will be charged.

• Example: If the repayment amount is 100,000 USDT and the trader holds 3 BTC (valued at 20,000 USDT each), after conversion, the trader receives 58,800 USDT, and pays the remaining balance of 41,200 USDT.

4. IMR ≥ 100% Trigger Repayment: Transfer collateral assets with Equity > 0 in the UTA out for repayment until IMR reaches 100%.

• Example: If the repayment amount is 100,000 USDT, and the UTA holds 10,000 USDT with an unrealized PnL of 30,000 USDT, transfer 20,000 USDT out for repayment until IMR reaches 100%. The wallet balance will be -10,000 USDT with an unrealized PnL of 30,000 USDT.

5. MMR ≥ 100% Repayment: Transfer out collateral assets with Equity > 0 in the UTA until MMR reaches 100%.

• Example: Similar to IMR repayment, ensure MMR reaches 100% before transferring funds from the UTA.

7. Reserve Fund Repayment: In cases where the institutional trader still faces a shortfall, the reserve fund from the system account will be transferred to the risk unit ID and used for loan repayment.

8. Liability Handling: If liabilities remain after the above steps, all transactions and coin transfers will be restricted for UIDs within the risk unit.

Liquidation Settlement 

In the liquidation process, a settlement fee will be collected by Loans Insurance Funds using the following formula: 

Liquidation Settlement Fee = Liquidated Asset * 2% 

Please monitor your risk level closely to avoid liquidation. 

Liquidation Process between Institutional Loans and UTA Account

When liquidation at the UTA level is being processed,  and the Institutional Loans liquidation is triggered, the liquidation process for the Institutional Loans will bypass the current UID.  

Liquidation at the UTA level operates separately from Institutional Loans liquidations. For example, while the rules for staggered liquidation of Options apply at the UTA level, they do not apply to Institutional Loans. 

During the liquidation process for Institutional Loans, any liquidations at the UTA level will only take place after the settlement of Institutional Loans liquidations. 

Supported Products and Services

Spot Trading 

Supports all current Spot trading pairs and leveraged tokens. 

Visit this page to learn about the leverage supported for Spot. 

USDT Perpetual

Supports USDT Perpetual contracts. 

Visit this page to learn about the opening restriction ratio of supported contracts. 

USDC Perpetual/Futures

Supports USDC Perpetual and Futures contracts. 

Visit this page to learn about the opening restriction ratio of supported contracts.

USDC Options

Supports USDC Options.

Margin Mode

Supports Isolated Margin, Cross Margin, and Portfolio Margin mode. 

OTC Trading

Supports OTC Trading. 

Convert

Convert is yet to be supported on Institutional Loans.

Account Margin Mode

UID

Coin

Wallet Balance

Index price

Unrealized PnL

Positive Option Value

Isolated Margin 

1001

USDT

1,000

1

3,000 

-

Isolated Margin

1001

USDC

1,000 

1

2,000 

-

Isolated Margin

1001

BTC

1  

60,000

-

-

Cross Margin 

1002

USDC

5,000 

1

2,000 

2,000

Portfolio Margin 

1003

USDC

2,000 

-

1,000 

900

Coin

Equity USD

Positive Option Value 

(under Cross Margin Mode)

USDT

4,000

-

USDC

13,000

2,000

BTC

60,000

-

Coin

Equity Range

Collateral Value Ratio

USDT, USDC

0 - 99,999,999,999

100%  (1)

BTC, ETH, TUSD, USDE

0 - 20,000,000

100%  (1)