How to Get an Institutional Crypto Portfolio Margin Access by WhiteBIT?
In the cryptocurrency market, where speed and liquidity are crucial, institutional clients often face the need for additional funding. Crypto portfolio margin access on the WhiteBIT crypto exchange offers an optimal solution for those seeking fast and secure ways to finance their operations in cryptocurrency. In this article, we’ll explore how to easily and profitably secure a crypto loan for your business.
WhiteBIT Portfolio Margin Access for Business
What Is a Portfolio Margin Access?
Portfolio margin for institutional clients is a convenient tool that allows you to borrow funds in cryptocurrency for trading using credit capital. Instead of relying solely on your own capital, you gain the opportunity to significantly expand your capabilities and liquidity, opening up additional prospects for transactions and the implementation of various trading strategies.
To minimize risks, you can take out a cryptocurrency loan for your business, ensuring effective use of borrowed funds, boosting your trading potential, and maintaining control over risks.
How Does WhiteBIT Institutional Portfolio Margin Access Work?
WhiteBIT’s Portfolio Margin Access provides the opportunity to borrow cryptocurrency for business purposes, including funds for spot trading, futures, and margin trading.
How to Take a Cryptocurrency Loan for Your Business?
- Submit an application: Apply on the institutional services page and wait for approval.
- Fund your balance: To receive the Portfolio Margin Access, you must fund your balance with the amount specified in the contract. For example, if you are applying for a loan of 1,000,000 USDT with an Initial LTV of 80%, you will need to deposit 250,000 USDT. As a result, your balance will total 1,250,000 USDT, with 250,000 USDT serving as collateral, available for trading.
- Receive the loan: After signing the contract and funding your balance, the loan will be deposited into your Main balance. After this, you will not be able to use the Earn and Borrow products.
All crypto assets on your account (including sub-accounts) will be considered collateral for the loan. It’s important to monitor the weight of your assets using the information on the Collateral-weight page.
Advantages of Crypto Loans For Businesses
Portfolio margin, which allows taking a crypto loan for institutional clients, is a key tool for traders and investors, offering new opportunities for effective use of borrowed funds through:
- Increased liquidity – Loaned funds allow for significantly expanding trading opportunities without the need to sell assets.
- Flexibility in use – Funds can be directed towards trading on the spot market, futures, and margin trading.
- Quick accessibility – The process of obtaining a loan is much faster than traditional loan applications, enabling quick responses to market changes.
What sets the crypto Portfolio Margin Access on WhiteBIT apart:
- High leverage up to 5x – On WhiteBIT, you can trade with leverage up to 5x.
- Minimum loan amount of 200,000 USDT – Our terms allow large institutional players to obtain loans for significant amounts, making the platform attractive for businesses focused on high-volume trading.
- Clear LTV scale for risk management – WhiteBIT employs a customizable LTV model, where risk levels can be adjusted based on the specific conditions of each loan. There are no fixed values for each LTV zone — interest rates are determined on a case-by-case basis, offering flexibility and transparency in managing risk.
On WhiteBIT, only key trading instruments are available: Spot, Futures, Margin, and Convert. We exclude complex and risky products like options, focusing instead on the core markets to provide our users with simplicity and security in their trading experience.
Crypto Portfolio Margin Access Risks
While loaned funds open new opportunities for increasing liquidity and expanding trading strategies, they also require a careful approach to risk management in order to minimize potential losses and ensure stability in the face of market uncertainty.
Risk Management
The interest rate is determined on an individual basis. Each of these points is an example of how the LTV and interest rate conditions can be set according to your specific contract.
- Withdrawal Restrictions: If the current LTV of the account is below 80%, withdrawals are allowed. However, the transaction will be blocked if the withdrawal causes the LTV to increase to 80% or higher. This is to prevent an increase in risk.
- Suspension of Withdrawals: If the account balance (including sub-accounts) falls below the loan and collateral amount, and the LTV exceeds 80%, withdrawals will be suspended until the LTV returns to 80%.
- Margin Call: When the LTV reaches the margin call level (e.g., 90%), you will receive an email notification requesting a top-up within 24 hours. If the balance is not replenished to the required amount (e.g., equivalent to 1,250,000 USDT for a 1,000,000 USDT loan), the ability to open new orders and positions will be suspended.
- Liquidation: If the LTV reaches or falls below the liquidation level (e.g., 95%), your balance will be liquidated, and all active orders and positions will be closed to prevent further risks.
Loan interest can be charged in two ways:
- Fixed — a fixed interest rate, which is charged once a month. You will receive a notification 24 hours before the deduction.
- KPI-based — the interest rate depends on the fulfillment of your trading KPIs (e.g., trading volume on spot, margin, or futures). If the KPIs are not met, a fixed interest rate will be charged, and you will receive a notification.
We provide you with all the tools needed to effectively manage your loan and protect you against risks. Monitor your LTV and adhere to the terms of your contract to avoid penalties or withdrawal restrictions.
Who Will the Crypto Institutional Portfolio Margin Access Suit Best?
This product is ideal for market makers, prime brokers, high-frequency trading (HFT) firms, hedge funds, and prop traders interested in an institutional crypto credit line. These client groups can effectively utilize loaned funds to expand trading positions, optimize liquidity, and minimize risks. The crypto loan provides the opportunity to work with larger capital volumes, increasing potential profits, while maintaining flexibility and security in financial strategies.
WhiteBIT Crypto Portfolio Margin Access Specifications
- Institutional Loan: 5x
- Target Audience: Market makers, prime brokers, high-frequency trading (HFT) firms, hedge funds, and prop traders.
- Loan Assets: USDT and USDC.
- Loan Issuance: The loan will be issued only to the specified risk unit identifier (UID) and can be directed only to UTA (Universal Trading Accounts).
- Repayment: Repayment can only be made to the UTA associated with the specified UID of the risk unit. Once the institution fully repays the loan, all reserves in the system account will be returned to the UTA of the institution’s risk unit.
- Maximum Loan Amount: The loan amount is determined based on the business’s risk profile.
- Supported Accounts: Only UTA accounts are supported. Third-party accounts and their sub-accounts are not supported.
- Minimum Loan Amount: From 200,000 USDT or the equivalent amount in another currency.
- Collateral Assets: Collateral assets are the total amount in USDT of all assets serving as collateral for institutional loans in the user’s UTA.
- Application Rules: If you are already a client, contact our manager via chat. If you are not yet familiar with the WhiteBIT Institutional team, submit an application on our website:https://institutional.whitebit.com
- Loan Issuance Account: The main UID of the specified risk unit.
- Repayment Rules: The repayment date is agreed upon by both parties and documented in the contract.
Repayment Scenarios:
You can repay your loan within the agreed timeframe according to the agreement. Early repayment is also possible if needed.
Risk Management
Risk Unit (Group of Related UIDs)
- In a set of primary and sub-accounts, different UIDs can be assigned to different risk units, but one (1) UID can only be linked to one (1) risk unit.
- A single risk unit can link multiple UIDs, but all these UIDs must belong to the same set of primary and sub-accounts.
- The risk unit must designate one (1) UID as the representative ID within this unit, which can be either for the primary or sub-account.
- Crypto backed loans issued under the specified UID of the risk unit must be fully repaid before that UID can be detached.
- Currently, we support linking UIDs to a risk unit via OpenAPI.
LTV (Loan-to-Value Ratio)
The LTV for the risk unit of institutional loans is calculated as follows:
LTV Ratio = (Principal Loan Amount + Unpaid Interest on the Loan) / Total Asset Value
Where:
- Principal Loan Amount is the total amount of all outstanding loans in the risk unit (converted to USDT).
- Unpaid Interest on the Loan is the total amount of unpaid interest on loans within the risk unit (converted to USDT).
- Total Asset Value is the sum of the collateral assets within the risk unit (converted to USDT) + the sum of the negative capital assets under the UTA in the risk unit — the value of long options in cross-margin mode.
You can request and track real-time changes in LTV via OpenAPI (LTV query).
The calculation of IMR (Initial Margin Requirement) and MMR (Maintenance Margin Requirement) within UTA is based on each UID and is independent of the LTV ratio for institutional loans.
Trading Restrictions
The interest rate is determined on an individual basis. The following values are provided as examples:
LTV ≥ 80%
Transfer Restrictions: It is prohibited to transfer collateral assets within the risk unit’s UTA to other accounts, including the Funding Account or any accounts outside the risk unit.
Your maximum transferable balance is determined by your LTV. The higher your LTV, the greater the transfer restrictions, as this increases the risk of margin calls or liquidation.
When your LTV < 80%, you can transfer excess collateral assets within the risk unit to external accounts, provided that the LTV after the transfer remains ≤ 80%.
Example interest rates:
- Safe Zone — LTV = 80%
- Margin Call — LTV = 85%
- Liquidation — LTV = 90%
LTV ≥ 85%
Transaction restrictions that increase the order value in UTA include:
- Spot Trading
- USDT Perpetual
- USDC Perpetual & Futures
The higher your LTV, the greater the transaction restrictions, as they can increase the LTV and raise the risk of a margin call or liquidation.
LTV ≥ 90%
Trading restrictions
- Spot: Buy and sell orders on the spot market in UTA will be limited.
- USDT Perpetual: Opening and closing orders in UTA will be restricted.
- USDC Perpetual & Futures: Opening and closing orders in UTA will be restricted.
Liquidation
Repayment process when LTV ≥ 90%
- Cancellation of active orders: All active orders on the spot market, USDT Perpetual, USDC contracts, and USDC Options in UTA will be canceled.
- Transfer of available assets: If the available assets in UTA can reduce the account’s LTV below 85% after repayment, the system will automatically transfer the available assets for repayment to complete the liquidation.
- Asset conversion for repayment: If transferring assets for repayment is not possible, the system will convert collateral assets in UTA to fulfill the repayment. A 2% conversion fee will be applied.
Example: If the repayment amount is 100,000 USDT and the trader holds 3 BTC (each worth 20,000 USDT), after conversion the trader will receive 58,800 USDT, and the remaining 41,200 USDT will be covered by other funds.
- Repayment when IMR ≥ 100%: Assets with Equity > 0 in UTA will be transferred for repayment until IMR reaches 100%.
Example: If the repayment amount is 100,000 USDT, and there are 10,000 USDT in UTA with an unrealized PnL of 30,000 USDT, 20,000 USDT will be transferred for repayment until IMR reaches 100%. The wallet balance will be -10,000 USDT with an unrealized profit of 30,000 USDT.
- Repayment when MMR ≥ 100%: Assets with Equity > 0 in UTA will be transferred for repayment until MMR reaches 100%.
Example: Repayment is similar to IMR; you need to ensure that 100% MMR is reached before transferring funds from UTA.
- Use of Reserve Fund for Repayment: If the institutional trader still has a deficit after the steps described above, the reserve fund from the system account will be transferred to the risk unit and used to repay the loan.
- Debt Handling: If there is still a debt after all steps are completed, all transactions and coin transfers will be restricted for the UID in the risk unit. During the liquidation process, a settlement fee will be charged, which will be transferred to the loan insurance fund according to the following formula:
Liquidation Fee = Liquidated Assets * 2%
Liquidation Process Between Portfolio Margin Access and UTA Account: When liquidation occurs at the UTA level, and institutional loan liquidation is triggered, the process of institutional loan liquidation will bypass the current UID. UTA-level liquidation is handled separately from institutional loan liquidation. For example, although the staged liquidation rules for options apply at the UTA level, they do not apply to institutional loans. During the institutional loan liquidation process, any UTA-level liquidations will only occur after the institutional loan liquidation is completed.
Supported Products and Services:
- Spot Trading
- USDT Perpetual
- USDC Perpetual/Futures
- Margin Mode
- Conversion
WhiteBIT Institutional Services
Conclusion
WhiteBIT is a trusted partner for your business in the cryptocurrency market. We offer a wide range of cryptocurrency solutions for corporate clients, including margin trading, futures, and loans, designed to enhance financial performance and minimize risks. Our platform provides deep liquidity and ultra-low trading fees, giving your business additional competitive advantages. Take advantage of our services for effective institutional trading!
FAQ
You can get a loan in USDT or USDC while maintaining the freedom to trade across all available markets on the platform.
You can receive a crypto loan for your business within approximately 2 weeks, subject to verification and approval.
To get an institutional crypto loan, you need to commit to an APY, trading volume, or other key performance indicators (KPls) as agreed upon during the application process.
Portfolio Margin Access starts from 200,000 USDT equivalent. The maximum loan amount is determined individually, based on your business risk profile.
The repayment date is established through direct agreement between the parties during the onboarding process. Once confirmed, it is clearly outlined in the contractual documentation to ensure mutual transparency and compliance.
