The term collateral refers to an asset that a lender accepts as security for a loan. Collateral may take the form of real estate or other kinds of assets, depending on the purpose of the loan. On Dsdaq, we accept BTC/ETH/USDT as collaterals. Because cryptos are highly fluctuated, we set different collateral rate for each crypto.
The collateral rate for BTC and ETH are 70%, which means for every $1 BTC or ETH, we lend you $0.7
The collateral rate for USDT is 100%, which means for every $1 USDT, we lend you $1.
The amount of loan we lend to you is always changing, for BTC and ETH, it is always 70% of the cryptos current price.
For example, if you have 1 BTC in your Crypto Collateral Account, and the current BTC price is $10,000，we will lend you $7,000 (10,000*70%) margin to trade. If the BTC price increased to $18,000, then we will automatically lend you $12,600 (18,000*70%)to trade. If the BTC dropped to $8,000, then we will lend you $5,600(8,000*70%) to trade.
Tips: if you use USDT as collateral, you will be able to borrow 100%. It is because USDT price is relative stable.
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