How to use the loan function of Ouyi?

Ouyi's crypto lending service enables you to borrow funds using your crypto assets as collateral, offering access to liquidity without selling your holdings and at lower interest rates than traditional loans.

Dec 19, 2024 at 08:29 am

Key Points:

• Understand the Concept of Crypto Lending
• Create an Account on Ouyi and Fund Your Balance
• Select Your Preferred Asset and Loan Amount
• Complete the Loan Application Process
• Monitor Your Active Loan and Repay on Time

Step 1: Understand the Concept of Crypto Lending

Crypto lending involves borrowing funds using your crypto assets as collateral. It enables you to access liquidity without selling your crypto holdings. Interest rates on crypto loans are typically lower than traditional loans, making them a cost-effective option for borrowing funds. Ouyi provides crypto lending services for various cryptocurrencies, including Bitcoin, Ethereum, and stablecoins.

Step 2: Create an Account on Ouyi and Fund Your Balance

Create an account on the Ouyi website or mobile app and complete the KYC verification process. Once your account is verified, transfer the necessary crypto assets to your Ouyi wallet account. The available loan amount you qualify for depends on the value of your collateral and the LTV (loan-to-value) ratio set by Ouyi.

Step 3: Select Your Preferred Asset and Loan Amount

On the Ouyi lending page, select the crypto asset you want to borrow against. Enter the loan amount you desire, keeping in mind the minimum and maximum loan limits. Consider the duration of your loan and the applicable interest rate. Ouyi offers flexible loan terms, allowing you to customize your loan to suit your needs.

Step 4: Complete the Loan Application Process

Review the loan agreement carefully before submitting your application. Ensure you understand the terms and conditions, including the interest rate, repayment schedule, and collateral requirements. Once you are satisfied, submit your loan application. Ouyi will review your application and process it based on your eligibility and collateral value.

Step 5: Monitor Your Active Loan and Repay on Time

After your loan is approved, you can access the borrowed funds. Track the status of your active loan through the Ouyi lending dashboard. Make sure to make regular interest payments and repay your loan on time to avoid any penalties or liquidation risks. You can choose to repay your loan partially or in full at any time.

FAQs:

• What are the benefits of using Ouyi's loan function?

  • Access liquidity without selling your crypto holdings
  • Competitive interest rates compared to traditional loans
  • Flexible loan terms tailored to your requirements
  • High security and reliability with industry-leading encryption

• Can I use my loaned funds to purchase crypto on Ouyi?

  • Yes, you can use your loaned funds to trade crypto on Ouyi. However, be mindful of managing your risk exposure and avoiding any potential conflicts of interest.

• What happens if I fail to repay my loan on time?

  • Failure to repay your loan on time may result in penalties and, in severe cases, the liquidation of your collateral. Ouyi will provide timely notifications and reminders throughout the loan term to prevent such occurrences.

• Is there a maximum loan duration on Ouyi?

  • Ouyi offers varying loan durations to suit different needs. The maximum loan duration may depend on the crypto asset you are borrowing against and the loan amount. Consult the Ouyi lending page or contact customer support for specific details.

• Is it possible to extend the loan duration before the maturity date?

  • Yes, you can request an extension of your loan duration before the maturity date. Ouyi typically allows for one extension request per loan. The approval of your request depends on factors such as your payment history and available collateral.