ROAD TOWN, British Virgin Islands, January 19, 2021, 10:00 AM UTC – Bitfinex, a state-of-the-art digital token trading platform, has added Cardano (ADA) as collateral on Bitfinex Borrow, a peer-to-peer (P2P) digital token loan portal.
Bitfinex customers will be able to obtain loans of up to 70% of the value of their ADA holdings in US Dollars (USD) and Tether tokens (USDt). At the date of this announcement, the borrowing rate for ADA was 11.68% Annual Percentage Rate (APR).
“We’re pleased to add Cardano to our growing list of collateral options on Bitfinex Borrow,” said Paolo Ardoino, CTO at Bitfinex. “This will provide our users with another way to take out a personal loan from our highly liquid peer-to-peer lending markets.”
Borrowers can select ADA from the list of currencies they wish to use as collateral, displayed on the Bitfinex Borrow page, before depositing sufficient collateral into their Margin wallet. A customer can then choose between a variable interest rate based upon the Flash Return Rate (FRR) or a fixed-rate loan. The annual and daily rates, as well as total lending and repayment amounts, are calculated based upon the amount put down as collateral, the loan amount, borrowing period and preferred interest rate option.
Borrowers can choose the length of time over which a loan is repaid, with fixed-rate loans offering a maximum 120 day term. When an outstanding fixed-rate loan expires after 120 days it is automatically converted into a variable-rate loan.
The personal loan will be credited to a borrower’s Margin wallet. Borrowers can make partial or full repayments on both the principal and interest of the loan by moving funds back into their Margin wallet, thereby reducing their daily interest rate. Borrowers will have to manage their own risk of the fluctuating ADA price.
For more information on Bitfinex Borrow, please visit: Support Bitfinex
Nothing in this post is financial, investment or other advice. Nothing in this post is an offer to borrow or lend or the solicitation, recommendation or endorsement of any course of borrowing or lending. Any references in this post to returns are only hypothetical and not guaranteed.
* The rates, payment amounts and collateral price reflected represent an estimate, based on current market conditions, of the interest rates and amounts payable based on the loan amount, collateral and duration selected. These values are hypothetical and not guaranteed to be the same as, or reflective of the actual interest rate, payment obligations or collateral price applicable to a loan a user decides to take. This information is provided for information purposes only.
Founded in 2012, Bitfinex is a digital token trading platform offering state-of-the-art services for traders and global liquidity providers. In addition to a suite of advanced trading features and charting tools, Bitfinex provides access to peer-to-peer financing, an OTC market and margin trading for a wide selection of digital tokens. Bitfinex’s strategy focuses on providing unparalleled support, tools, and innovation for experienced traders and liquidity providers around the world. Visit Bitfinex to learn more.
Joe Morgan, Senior PR Manager, Bitfinex