The Unified Trading Account (UTA) allows for borrowing and repayment of assets under specific conditions. This article explains how the system works, including how borrowing is triggered, how interest is calculated, and the repayment process.

 

 

• Borrowing

• Interest 

• Repayment

  • Manual Repayment

  • Auto Repayment

• View Borrowing, Interest, and Repayment History

 

 

 

Borrowing 

Borrowing under the UTA is automatically triggered under specific scenarios. Manual borrowing is not supported.

 

Formula

• Cross Margin 

Borrowed Amount = ABS [Min (0, Equity − Buy Option Initial Margin - Positive Option Value − Asset Frozen)]

 

• Portfolio Margin

Borrowed Amount = ABS [Min (0, Equity − Asset Frozen)]

Equity = Asset Wallet Balance + Perpetual and Futures UPL + Options Value

 

 

 

Borrowing Scenario

When any of the below scenarios generate a borrowing amount, the system will process the auto borrowing of the asset. 

 

 

 

Borrowing Limit

All users are subject to a maximum borrowing limit shared across their Main Account and Subaccounts. Borrowing limits vary by coin and VIP tier. For more details, visit the Margin Data page.

 

For example, if the maximum borrowing limit for USDC is 2,500,000, the combined borrowing amount across the Main Account and two Subaccounts (A & B) must not exceed this limit. Exceeding this limit may trigger auto repayment.

 

 

 

 

 

Interest

When borrowing occurs, interest accrues. However, for borrowings arising from unrealized losses in Perpetual and Futures Trading (excluding Options Trading), if the unrealized loss falls within the interest-free range, the borrowing can be exempt from interest. All other borrowings are subject to interest accrual.

 

Interest Scenario

Understanding the borrowing scenarios will help you identify which borrowings are realized or unrealized, and if they are subject to interest accrual.

 

 

Interest Accrual and Calculation 

Interest will be accrued hourly once it is incurred. The system will auto-calculate and charge the interest five minutes after each hour, such as 8:05AM UTC or 9:05AM UTC, etc. This is based on the interest rate and the amount of borrowing at that time. 

 

The interest rate for UTA is not fixed and it is subject to change on a real-time basis. For more information on how the interest rate is derived, please refer to Bybit Floating Interest Rate System. 

 

 

Formula

Hourly Interest Charge = Borrowing Amount × Hourly Interest Rate

 

Example

Trader A has placed a Spot Margin Trading BTC/USDC order and the borrowed amount is 10,000 USDC. Assuming the yearly interest rate is 5%, the hourly interest charge is calculated as follows:

10,000 USDC × 5% / 365 / 24 =  0.0570 7USDC

Maximum Interest-Free Range

Only borrowing that arises from the unrealized losses from perpetual & futures trading is entitled to interest-free if the unrealized loss amount falls within the maximum interest-free range. Once the unrealized loss amount exceeds the interest-free range, interest will be charged for the entire borrowed amount.

The UTA offers an interest-free borrowing limit, which varies by VIP tier.

 

 

Notes: 

— The maximum interest-free range is calculated on a per-account basis, which means each Main Account or Subaccount will have a separate interest-free amount quota.

— Parameters may be modified based on market conditions. Bybit will notify users in advance.

 

Example

Trader A has an unrealized loss of 20,000 USDC. His wallet balance includes 10,000 USDC and 0.2 BTC valued at 20,000 USD. This results in a borrowed amount of 10,000 USDC. If Trader A's interest-free range for USDC is 15,000 USDC, the unrealized loss exceeds the range. Therefore, the full 10,000 USDC borrowing will accrue interest.

 

 

 

 

Penalty Interest

A penalty interest will be charged when your borrowing amount exceeds 100% of the maximum borrowing limit. The formula is:

 

Formula

Penalty Interest Payment = Borrowing Amount × Hourly Interest Rate × (utilization ratio)³

 

Example

If the borrowing amount is 3,000,000 USDC and the maximum borrowing limit is 2,500,000 USDC with an hourly interest rate of 0.0001%, the penalty interest charge is calculated as follows: 

 

Utilization Ratio = 3,000,000 / 2,500,000 = 120%

Penalty Interest = 3,000,000 × 0.0001%  × (1.2)³ = 5.184 USDC

Repayment

Manual Repayment

Currently, traders can perform manual repayments on the UTA via the few methods stated below: 

 

1. Use Repay Button: Go to UTA and click on the Repay button for repayment. A 0.1% repayment handling fee (conversion fee from margin assets into borrowed coins) on the total repayment amount will apply. For more details, please visit here. 

 

2. Deposits or Transfers: Deposit or transfer assets in the respective borrowed amount from another account to your UTA. The borrowed amount will be deducted from your wallet balance immediately.

 

3. Selling Assets: Sell margin assets via Spot Trading into the assets you borrowed. However, please note that if the Initial Margin Ratio (IMR) is 100%, traders are not allowed to place orders to buy assets with a lower collateral value ratio using assets with a higher one. You can view the collateral value ratio from here. 

 

 

 

Auto Repayment

If auto repayment is triggered, the system will automatically convert other positive balance assets into the borrowed coin based on the index price to repay the loan. 

 

Auto-Repayment Scenarios

Auto repayment will be triggered in the following scenarios:

1. Maintenance Margin Rate (MMR) ≥ 100%: The auto repayment process will be triggered until liabilities are fully repaid, with a 2% handling fee.

 

2. Exceeding Maximum Borrowing Limit: When the maximum borrowing limit is hit, the auto repayment process will be triggered until the borrowed amount is reduced to 90% of the maximum borrowing limit, with a 1% repayment handling fee. Among all accounts with borrowings, the system will prioritize repayment in descending order, starting with the accounts having the highest borrowed amount and proceeding to those with the lowest.

 

 

 

Auto-Repayment Process

Bybit supports a delayed automatic repayment mechanism, which only applies to the scenario of users exceeding the maximum borrowing limit. 

 

When the borrowing limit reaches 100%, the system sends an email notification to the traders as a reminder. Once your borrowed amount falls below 100% of the maximum borrowing limit, your account will return to a safe level. However, if the account's borrowed amount remains at or above 100% of the limit for a continuous 24-hour period or reaches 200%, whichever comes first, the system will initiate the automatic repayment. Note that for scenarios where the MMR is ≥ 100%, the delayed automatic repayment mechanism does not apply.

 

The auto repayment process is as follows:

 

Step 1: The system will cancel the active orders from Spot/Spot Margin Trading (i.e., limit orders or TP/SL orders) and Buy Options that occupy the borrowed assets to free up frozen balances.

 

Step 2: Assets with positive equity and without any borrowed amount under the UTA will be auto converted into the assets in liability for repayment, without canceling the Spot/Spot Margin or Buy Options active order. Assets will be sold according to the liquidity sequence stated here.

 

Step 3: Cancel the Spot/Spot Margin and Buy Options active order to free up the frozen balance of other coins according to the liquidity sequence to auto-exchange into the assets in liability for repayment.

 

 

Notes: 

— Auto-repayment will proceed through Step 1 to Step 3 until the borrowing amount is reduced to 90% of the maximum borrowing limit (for exceeding the maximum borrowing limit scenario) or until all liabilities are fully repaid (for MMR ≥ 100% scenario).
— In the case where traders have borrowings in multiple coins, the system will repay the non-stable coins first according to the liquidity sequence, followed by stablecoins.

— If the MMR remains above 100% after the auto-repayment process, liquidation to derivatives position will step in. For more details, please refer to Trading Rules: Liquidation Process (Unified Trading Account).

 

 

 

 

View Borrowing, Interest, and Repayment History

Borrow History

 

On the App, go to the Assets page → Unified Trading Account and tap on Borrows to view the borrow history.

 

 

On the Borrow History, you can see the borrowing details under each coin, including the borrowed amount, hourly interest rate, maximum borrowing amount, utilization ratio, and borrowed amount (interest-free).

 

• Maximum borrowing amount: The maximum borrowing limit for each coin, and this limit is shared among your Main Account and Subaccounts. 

• Utilization Ratio: This shows the utilization ratio of your borrowing limit across your Main and Subaccounts. 

• Borrowed Amount (Interest-Free): This shows the borrowed amount arising from unrealized loss and the amount that is exempted from the interest charge.

 

 

Interest Record and Repayment History

On the App, go to Assets → Unified Trading Account → Transaction log and filter the respective transaction types.

 

To learn more about how to view your repayment history, please refer to here.