What Is Binance VIP Loan 2.0? (EXPLAINED)
Binance’s VIP Loan service has implemented a range of new features to help automate and simplify the loaning process.
VIP users can now utilize self-service borrowing and repayment options. They can also choose flexible interest rates on their loans.
Additionally, VIP Loan 2.0’s features can be accessed via new SAPI endpoints.
With Binance VIP Loan 2.0, you can experience a new level of self-service that streamlines your VIP loan flow.
Binance VIP Loan offers an institutional-grade loan service, empowering you to access affordable liquidity and diversify without liquidating your current assets. We’ve made some changes and improvements, and we’re now proud to introduce Binance’s VIP Loan 2.0 service with a host of new features.
Self-Service Borrowing
Our standardization and automation tools enhance the efficiency of your VIP Loan application and fund disbursement process. Our system streamlines the entire workflow, from administration to approval and renewal, enabling a smooth borrowing experience.
Let’s dive into some of its mechanics:
Our VIP users request their new loan orders on the VIP Loan page. Note that only main accounts are authorized to send requests.
The loan’s threshold limit depends on whether there are outstanding or active orders in the VIP user’s account and corresponding sub-account.
For a new VIP Loan user, any first loan order must be at least $0.5M in value. This requires collateral of at least $695,000 in their Spot wallet. Previous VIP Loan users have a minimum order value of $50,000.
Each loanable token has a corresponding limit in the system for use with our self-service feature. If the token loan application exceeds the limit, it will be rejected but won’t affect the rest of the applications in the same bundle.
For amounts exceeding the system limit, our VIP users should get in touch with Binance for an OTC application.
To find out more about how you can successfully use our self-service borrowing feature, make sure to head to our VIP Loan FAQ page here.
Update: Flexible Rates
Binance VIP Loan 2.0 introduces new flexible rates and open-term features to offer even more range to our VIP users. It’s worth noting that flexible loan rates tend to be less costly than those of fixed-term loans, although this is not always the case.
As always, we recommend that our VIP users carefully consider risk when taking out a flexible rate product. In the event of a market spike, a floating rate may not be as cost-effective as a fixed rate. If you’re engaged in short-term arbitrage and wish to lock in costs, choosing a fixed rate could be a more efficient strategy.
Let’s take a look at exactly how a flexible rate is calculated:
A flexible rate is updated and charged daily, with each token having different parameters that determine its interest rate.
The daily interest rate is calculated based on the weighted average of interest rates during the previous day.
A detailed daily interest rate breakdown can be found on the VIP Loan landing page.
Currently, there is no difference in flexible rates between the different VIP levels offered. To learn more about our Flexible Loans, contact your Binance VIP manager.
Open-term loans do not require renewal, thus reducing operational time.
Update: Self-Service Loan Renewal
Alongside our self-service borrowing feature, VIP users will also be able to renew and repay their loans without needing a Binance representative. To renew an order, users must first pay off the outstanding interest on any existing order.
Note that, in some cases, orders cannot be renewed. This is the case if:
Current fund utilization exceeds the threshold, or there is insufficient stock.
The order is in your margin call.
Only the orders added by VIP Loan 2.0 customers can be renewed through SAPI. Old orders will be renewed via the loan orders page. Additionally, when renewing an order, you cannot change the rate type between stable and flexible rates.
If the previous loan order follows a stable rate, the interest rate can be changed. The interest rates of Flexible Loans cannot be modified, and open-term loans do not need to be renewed. When repaying any loan, overdue orders will incur a triple penalty rate.
Newly Supported SAPI Functions
For VIP users who want to use SAPI endpoints to access VIP Loan 2.0 features, we’ve got you covered with the following:
Loan request support for main accounts only
Renewal support for main or borrowing accounts
Note that SAPI currently does not support flexible VIP Loan rates. However, we plan to fix this in future versions.
Experience a New Level of Efficiency With VIP Loan 2.0
If you’d like to learn more about the features covered above, please visit the VIP Loan page for more details. You can also contact EarnCashTeam to be informed.
You may also check out the other information with Binance.
