A Deposit Loan on Blynex is a service that allows users to borrow one cryptocurrency by using another as collateral. This feature enables users to unlock liquidity without having to sell their assets. Whether you're looking to access funds for trading, investments, or other purposes, Blynex Loans offer a flexible and convenient way to get a loan against your cryptocurrency holdings.
How Blynex Loans Work
1. Deposit or Purchase Collateral: Users can deposit a crypto asset they already hold, or purchase an asset directly from Blynex's spot market. This asset will serve as collateral for the loan.
2. Select Collateral and Amount: On the Loan page, users can choose the crypto asset they wish to use as collateral and the loan amount they wish to borrow. The platform offers four flexible loan durations (1 day, 1 week, 1 month, and 3 months), along with borrowing percentages ranging from 20% to 50% of the collateral value.
3. Flexible Loan Amounts: Depending on the chosen duration and borrowing percentage, users can tailor their loan to their specific needs. Blynex also offers a free period for all loans, meaning no interest is charged if the loan is repaid within the agreed-upon time.
4. Interest and Liquidation: For each loan duration, Blynex offers a grace period without interest, followed by a penalty phase if the loan is not closed on time:
• 1-Day Loan: If a user borrows for 1 day, no interest is charged during that period. If the loan is not closed by the end of the day, the user will have an additional 7-day grace period with a penalty interest rate applied.
• 1-Week Loan: Similarly, for a 1-week loan, there is no interest for the initial 7 days. If the loan remains unpaid after that, a further 7-day grace period with a penalty interest rate will be given.
• 1-Month Loan: A 1-month loan comes with a 30-day interest-free period. If not closed, an extra 30 days grace period with a penalty interest rate is provided.
• 3-Month Loan: For the 3-month loan, users have a full 90 days without interest. After this, they get an additional 6-month grace period, during which a penalty interest rate will apply.
If the loan is not closed by the end of these penalty periods, Blynex will proceed to liquidate the collateral. The liquidation price is calculated based on the asset's risk profile, typically between 30% and 40% of the collateral's value.
