Q: How is interest calculated on the Credit Account?
A: Interest is charged on your used credit starting from the day after you borrow (T + 1).
Daily rate: 0.05 %
Method: Simple interest (interest is always calculated on the original principal).
Note: If a transaction is refunded or reversed, any interest already accrued is not refunded.
Q: How can I make a repayment?
A: You can repay in either of these ways:
Use the balance in your Funding Account.
Use assets held in your Credit Account.
For partial repayments, the system pays interest first, then principal.
Q: Can I repay at any time?
A: Yes — you can repay whenever you like; there is no time limit.
Q: What is simple interest?
A: With simple interest, each day's interest is calculated only on the original principal, not on accumulated interest.
Example:
Principal: 10,000 USD
Daily rate: 0.05 %
Daily interest: 10,000 USD × 0.05 % = 5 USD (The 5 USD from Day 1 is not added to the principal on Day 2.)
Q: What happens if my Credit Account is liquidated?
A: If your Credit Account gets liquidated, one of the following will occur:
If your asset value is greater than (>) the outstanding repayment amount A portion of your assets equal to the repayment amount will be sold to cover your debt. Any remaining asset value will be returned to your Funding Account.
If your asset value is less than or equal to (≤) the outstanding repayment amount All assets in your Credit Account will be sold to cover the repayment.
Regardless of the asset value, once liquidation occurs, your Risk Index will reset to zero.