💡 Version Note: This article applies to v3.0.0 and later versions.
What are the risks of using Credit?
Because your credit limit is backed by crypto collateral, market volatility can reduce the value of your pledged assets.
If your risk gets too high, your position may be liquidated, so it’s important to monitor your risk status in the app.
What is the risk index, and how is it different from risk status?
The risk index is a number that shows the ratio between your total outstanding amount and the value of your collateral.
Your risk status is the label you see in the app, based on that index:
Below 0.6: Safe
0.6–0.8: Moderate
0.8–0.9: Margin Call
0.9 and above: Liquidation is triggered
How can I add or release collateral?
If your risk index goes up, you can add more collateral to lower your risk. You can also turn on [Auto‑Collateral] so additional collateral is added automatically when needed.
You can release (remove) some collateral when your risk index is below 0.6, as long as it will still remain at or below 0.6 after the change.
How do interest and repayments work?
You’re charged simple interest at a daily rate of 0.05%, with no compounding interest, no hidden fees, and no lock‑in period. There is no fixed repayment date, so you can repay at any time.
You can repay in two ways:
Balance: Repay using your available balance. If your risk index is at or below 0.6 after repayment, some of your collateral may be released.
Collateral: Repay by using your pledged collateral instead of your balance.
Credit provided by RedotPay must be repaid according to the terms. Failure to repay may result in additional fees and impact your account usage.
You have to repay your loans. Don't pay any intermediaries.
Money Lender's Licence No: [1550/2024]
Hotline: (852) 2765 4472