2024-11-04 13:00:44Bybit has implemented a robust framework of risk management measures within the Unified Trading Account (UTA) known as Lending Pool Auto Repayment Rules, to safeguard the stability of our lending pool. These rules are designed to ensure the efficient allocation of funds and mitigate potential risks associated with high utilization rates.
By adhering to these comprehensive risk management practices, Bybit aims to ensure the continued security and efficiency of our lending pool, fostering a safe and stable trading environment for all traders.
The auto repayment mechanism prioritizes users who have not repaid their loans, sorting them from high to low based on their borrowed amounts. Users with higher borrowing amounts are ranked higher. When the platform's Auto Repayment Ratio threshold is reached, the platform will select the top-ranked user for automatic repayment, converting their margin coin into the loan currency to repay the loan and stabilize the lending pool.
However, this process does not necessarily repay the user's entire borrowed amount. After each batch of repayments, the system recalculates the user rankings and re-screens for the next repayment targets.
Auto Repayment Parameters
The three (3) risk parameters are as follows:
|
Parameter |
Loan-to-Pool Ratio |
Description |
|
Auto Repayment Warning Ratio |
The specific ratio varies depending on the type of coin |
When the loan-to-pool ratio reaches the specified threshold for a given coin, potentially affected users will receive timely email warnings, recurring every four (4) hours, indicating the impending auto repayment. |
|
Auto Repayment Ratio |
100% – 150% |
Once the loan-to-pool ratio reaches the specified threshold for a given coin, auto repayment will be triggered to maintain the stability of the lending pool. |
|
Cease Auto Repayment Ratio |
The specific ratio varies depending on the type of coin |
The auto repayment process will cease once the loan-to-pool ratio drops to the specified threshold for a given coin. |
Auto Repayment Implementation Rules
-
The system will allocate the borrowing amounts tier by tier, triggering auto repayment for one tier at a time per user.
-
The system continuously evaluates and monitors each auto repayment instance, halting the process if the utilization rate falls to 90% or below.
-
User accounts failing to meet repayment requirements or facing potential liquidation will be temporarily excluded from auto repayment.
-
The system will auto-convert the user's margin coin to the borrowed coin for repayment and the exchange fee is 1%.
Account Selection Criteria
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In the Unified Trading Account, user accounts are filtered based on having a borrowed amount greater than zero in the corresponding coin. These accounts are sorted according to their unpaid borrowed amount, with higher-ranking given to those with larger unpaid borrowed amounts.
-
In cases where multiple accounts have the same borrowed amount, the Bybit UID is utilized as the secondary sorting criterion, in descending order. This approach ensures a systematic and fair selection process for automatic liquidation.
Example
-
Tier Interval: 20,000 USDT
-
Amount to be repaid to the Lending Pool: 200,000 USDT
User A's borrowing situation is detailed as shown below:
|
|
Borrowed Amount |
Tier |
Amount Required to Lower Repayment Tier |
Cumulative Repayment Amount |
|
User A |
250,000 |
13 |
10,000 |
10,000 |
|
240,000 |
12 |
20,000 |
30,000 | |
|
220,000 |
11 |
20,000 |
50,000 | |
|
200,000 |
10 |
20,000 |
70,000 | |
|
180,000 |
9 |
20,000 |
90,000 | |
|
160,000 |
8 |
20,000 |
110,000 | |
|
140,000 |
7 |
20,000 |
130,000 | |
|
120,000 |
6 |
20,000 |
150,000 | |
|
100,000 |
5 |
20,000 |
170,000 | |
|
80,000 |
4 |
20,000 |
190,000 | |
|
60,000 |
3 |
20,000 |
210,000 | |
|
40,000 |
2 |
20,000 |
230,000 | |
|
20,000 |
1 |
20,000 |
250,000 |
User B's borrowing situation is outlined as shown below:
|
|
Borrowed Amount |
Tier |
Amount Required to Lower Repayment Tier |
Cumulative Repayment Amount of User B |
Cumulative Repayment Amount of User A |
Total Repayment Amount for Both User A & B |
|
User B |
150,000 |
8 |
10,000 |
10,000 |
110,000 |
120,000 |
|
140,000 |
7 |
20,000 |
30,000 |
130,000 |
160,000 | |
|
120,000 |
6 |
20,000 |
50,000 |
150,000 |
200,000 | |
|
100,000 |
5 |
20,000 |
70,000 |
170,000 |
240,000 | |
|
80,000 |
4 |
20,000 |
90,000 |
190,000 |
280,000 | |
|
60,000 |
3 |
20,000 |
110,000 |
210,000 |
320,000 | |
|
40,000 |
2 |
20,000 |
130,000 |
230,000 |
360,000 | |
|
20,000 |
1 |
20,000 |
150,000 |
250,000 |
400,000 |
Based on the information provided in the tables above, the steps for auto repayment are outlined as follows:
1. Initial State:
-
User A's current tier: 13
-
User B's current tier: 8
2. Repayment Process:
-
Auto repayment commences from the highest outstanding borrowed amount, starting with User A from tier 13 and moving downwards until tier 8. At tier 8, both User A and User B are in the same tier, so the system will re-evaluate the account selection criteria to choose the next target for auto repayment.
User A:
-
Tier 8 borrowed amount for User A: 160,000 USDT.
User B:
-
Tier 8 borrowed amount for User B: 150,000 USDT.
Since User A’s borrowed amount on tier 8 is still greater than User B's, User A will be selected for auto repayment before User B. After the auto repayment process for both User A and User B, reaches tier 5, the entire repayment amount of 200,000 USDT has been repaid.
Conclusion:
-
User A accumulates a total repayment amount of 150,000 USDT.
-
User B accumulates a total repayment amount of 50,000 USDT.
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