Announcement on the Official Launch of Spot Leverage Trading by BiyaPay

Dear BiyaPay Users:

BiyaPay’s spot leverage trading was officially launched on March 29, 2024!

Leverage trading involves the introduction of leverage in spot transactions to gain greater profits while also bearing higher risks. BiyaPay leverage trading is a derivative feature of spot trading, allowing users to trade more assets through leverage. Please participate cautiously and pay attention to risk control.

Leverage Trading Rules

一、Trading Fee Rate

The same as spot trading, with Maker at 0.04% and Taker at 0.08%.

二、Margin Rate and Liquidation Rules

Margin Rate: Margin Rate = Effective Margin / (Maintenance Margin + Position Reduction Fee)

Effective Margin = Available Equity in Each Currency’s Full Position * Spot USD Price + Available Equity in Each Currency’s Negative Full Position * Spot USD Price - Estimated Fees for All Open Orders

Available Equity in Full Position = Balance in Full Position + Perpetual Contract Earnings in Full Position

Note: Effective Margin is the asset’s discounted value converted to its USD value used for collateral trading.

Liquidation Rules: Liquidation occurs when the margin rate is less than or equal to 100%; an email reminder is sent when the margin rate is less than or equal to 300%, only once per hour.

Spot Trading Loss: Due to the different conversion rates of buying and selling currencies, resulting in the change of fiat currency value.

For example, holding 0.5 BTC with a conversion rate of 1, the market value at that time is 20000USD. If BTC is sold for USD, but the USD currency discount rate is only 0.5, though 20000USD is obtained from the sale, it can only be converted to 10000USD of effective margin.

Maintenance Margin:

1.For non-USD liabilities, Maintenance Margin = (Liabilities + Interest) * Maintenance Margin Rate * Mark Price
2.For USD liabilities, Maintenance Margin = (Liabilities + Interest) * Maintenance Margin Rate Note: Liquidation prioritizes the asset with the highest liability.

三、Leverage Mode

Currently, only full-position mode is supported, which means all positions share the margin, supported by the total balance in the margin account. Liquidation happens when the margin rate in the full-position leverage account drops to 100%.

四、Maximum Loanable Amount for Users

Maximum Loanable Amount for Users = MIN ((Net Assets in USD × (Multiplier - 1) - Borrowed Assets), Remaining in the Spot Pool, Maximum Loanable Amount per User). For example, if the platform supports a maximum leverage of 3x, users can borrow twice the principal amount of digital assets.

五、Interest Calculation

Interest is calculated as simple interest based on the whole hour rate. The interest hour starts from the actual borrowing time, counted as 1 hour immediately after the loan is successful, and 2 hours at the next whole hour, with less than 1 hour counted as 1 hour.

The calculation formula is: Interest = Loan Amount (Principal) * (Hourly Interest Rate) * Loan Hours.

六、Leverage Multiplier

The maximum leverage multiplier currently supported is 5x. For example, with 1USD, one can borrow 4USD, and after borrowing, the account has 5USD available.

七、Borrowing Limit

Leverage Trading Instructions

In spot trading, leverage can increase profits but also comes with greater risks. BiyaPay leverage trading is a financial instrument derived from spot trading, allowing users to increase their tradable assets and enjoy higher investment returns, but also bearing corresponding risks. Below are the details on BiyaPay leverage trading.

一、What is leverage trading?

Leverage trading amplifies the principal by several times, allowing small capital to make larger investments, achieving high returns. However, this also means potential losses can be magnified. Due to the large price fluctuations of digital assets, please fully understand the risks of leverage trading before using it.

二、How to profit from rising coin prices with leverage?

Taking BTC/USD as an example, if the platform supports up to 3x leverage, and you predict the spot price of Bitcoin will rise from 10000USD to 20000USD, with a principal of 10000USD, you can borrow up to 20000USD from the platform. With 30000USD, buy 3BTC at 10000USD and sell at 20000USD, profiting 30000USD. If trading with only your own 10000USD, the profit would be 10000USD. Using 3x leverage, the profit triples!

三、How to profit from falling coin prices with leverage?

For BTC/USD, if the platform supports up to 3x leverage, and you predict the spot price of Bitcoin will fall from 20000USD to 10000USD, with a principal of 10000USD (0.5BTC), you can borrow 1BTC, sell it at 20000USD, and buy at 10000USD, profiting 10000USD. With your own funds, you can only buy low and sell high, not short sell.

四、What are the risks of leverage trading?

Leverage allows for greater potential profits with less capital. However, if the trading direction is misjudged, losses can be magnified proportionally. Therefore, ordinary traders should avoid high leverage and heavy positions to prevent liquidation or even bankruptcy.

五、How to reduce leverage risk?

1. Use loans reasonably and control position sizes.
2. Take profits and stop losses in time, and close positions voluntarily.
3. Add margin timely to maintain a healthy margin rate.

About BiyaPay

BiyaPay is a global multi-asset trading wallet that supports the exchange of more than 30 legal currencies and more than 200 digital currencies using USDT as a medium, providing users with safer and faster international remittances.It also supports USDT trading of US and Hong Kong stocks. Users do not need to apply for offshore accounts and can participate in stock trading in real-time with real-time deposits and withdrawals. One account and one fund can invest in global and US and Hong Kong stock markets.

Thank you for your trust and support in BiyaPay. We look forward to your active participation! If you have any questions, feel free to contact our customer service team:
Customer Service Email: service@biyapay.com
Customer Service Telegram: @biyapay001
Chinese Telegram Group:https://t.me/biyapay_ch

BiyaPay March 29, 2024