Scenario	Explanation
Insufficient wallet balance to cover the respective transaction	Transactions that reduce wallet balance, such as trading fees, funding fees, or closed position losses, are realized expenses. The borrowed amount is considered realized borrowing, and interest accrued.
Perpetual contracts record unrealized losses	Borrowing arises from unrealized losses are entitled to interest-free if the unrealized losses amount falls within the interest-free range. Once the unrealized losses exceed the interest-free range or the position is closed at a loss, the entire borrowed amount is subject to interest accrual.

 

Interest Accrual and Calculation 

Settled Borrowing

Once a loan is issued, interest accrues hourly. The system automatically calculates and collects interest within the first five minutes of each hour—for example, at 08:05 UTC, 09:05 UTC, and so on. Interest is calculated based on the prevailing borrowing rate and the outstanding loan amount at the time of calculation.

The Trading Account borrowing rate is variable and adjusts in real time according to market conditions.
For more details on the rate calculation methodology, please refer to the Zoomex Floating-Rate System.

Unsettled Borrowing

If the unsettled borrowing amount does not exceed the maximum interest-free threshold, no interest will be charged.
However, if it exceeds the threshold, the system will charge interest on the entire borrowing amount within the first five minutes of each hour, using the same calculation method as settled borrowing.

 

Formula

Hourly Interest Charge = Borrowing Amount × Hourly Interest Rate

 

Maximum Interest-Free Range

Trading Account offers an interest-free borrowing limit, which varies based on the user’s VIP tier.

VIP Tier	USDT Max. Interest-Free Range	USDC Max. Interest-Free Range
Non-VIP	30,000	15,000
VIP 1-3	50,000	25,000
VIP 4-5, Supreme VIP, Pro 1-6	70,000	35,000

 

Notes: 

• The maximum interest-free range is calculated on a per-account basis, which means each Main Account or Subaccount will have a separate interest-free amount quota.
• Parameters may be modified based on market conditions. Zoomex will notify users in advance.

 

Penalty Interest

A penalty interest will be charged when your borrowing amount exceeds 100% of the maximum borrowing limit. The formula is:

Formula

Penalty Interest Payment = Borrowing Amount × Hourly Interest Rate × (utilization ratio)³

Example

If the borrowing amount is 3,000,000 USDT and the maximum borrowing limit is 2,500,000 USDT with an hourly interest rate of 0.0001%, the penalty interest charge is calculated as follows: 

Utilization Ratio = 3,000,000 / 2,500,000 = 120%

Penalty Interest = 3,000,000 × 0.0001%  × (1.2)³ = 5.184 USDT

 

Repayment

 

Manual Repayment

Currently, traders can perform manual repayments on the Trading Account via the few methods stated below: 

1. Repayment via the “Repay” Button:
   Go to Trading Account and click the Repay button to proceed. A 0.1% repayment fee will be charged on the total repayment amount (this fee covers the conversion of margin assets into the borrowed asset).

2. Repayment via Deposit or Transfer:
   Deposit or transfer equivalent assets from other accounts into Trading Account. The repayment amount will be automatically deducted from your account balance.

3. Repayment via Asset Sale:
   Sell margin assets in the Spot Market to obtain the borrowed asset for repayment.
   Please note: If the Initial Margin Ratio (IMR) reaches 100%, traders cannot place buy orders to exchange higher-conversion-rate collateral assets for lower-conversion-rate assets.

4. Automatic Repayment:
   If automatic repayment is triggered, the system will automatically convert other positive-balance assets into the borrowed token at the index price to repay the loan.

 

Auto Repayment

If auto repayment is triggered, the system will automatically convert other positive balance assets into the borrowed coin based on the index price to repay the loan. 

 

Auto-Repayment Scenarios

Auto repayment will be triggered in the following scenarios:

1. Maintenance Margin Rate (MMR) ≥ 100%: The auto-repayment process will be triggered, partially repaying the liabilities until the MMR returns to the 85%–90% range. If the partial repayment fails to bring the MMR within this range, a full repayment will be executed. Please note that a 2% handling fee will be charged for auto-repayment.

Notes:

• Within 15 minutes of a margin asset being delisted, if the user's MMR is ≥ 100%, the delisted margin asset will be included in the auto-repayment process.
• Within 15 minutes of a margin asset being delisted, if the user's MMR is ≥ 160%, before the position is taken over, the delisted margin asset will be prioritized for conversion into higher collateral value assets.

2. Exceeding Maximum Borrowing Limit: When the maximum borrowing limit is hit, the auto repayment process will be triggered until the borrowed amount is reduced to 90% of the maximum borrowing limit, with a 1% repayment handling fee. Among all accounts with borrowings, the system will prioritize repayment in descending order, starting with the accounts having the highest borrowed amount and proceeding to those with the lowest.

 

Auto-Repayment Process

Zoomex supports a delayed automatic repayment mechanism, which only applies to the scenario of users exceeding the maximum borrowing limit. 

When the borrowing limit reaches 100%, the system sends an email notification to the traders as a reminder. Once your borrowed amount falls below 100% of the maximum borrowing limit, your account will return to a safe level. However, if the account's borrowed amount remains at or above 100% of the limit for a continuous 24-hour period or reaches 200%, whichever comes first, the system will initiate the automatic repayment. Note that for scenarios where the MMR is ≥ 100%, the delayed automatic repayment mechanism does not apply.

The auto repayment process is as follows:

Step 1: The system will cancel any spot trading orders (including limit orders and take-profit/stop-loss orders) that utilize the borrowed asset to release the frozen balance.

Step 2: The system will automatically convert non-borrowed assets with a positive net balance in Trading Account into the borrowed asset for repayment, without canceling any existing spot orders.
Assets will be liquidated according to the predetermined liquidation order specified here.

Step 3: Cancel the Spot Trading active order to free up the frozen balance of other coins according to the liquidity sequence to auto-exchange into the assets in liability for repayment.

 

Notes: 

• Auto-repayment will proceed through Step 1 to Step 3 until the borrowing amount is reduced to 90% of the maximum borrowing limit (for exceeding the maximum borrowing limit scenario) or until all liabilities are fully repaid (for MMR ≥ 100% scenario).
• In the case where traders have borrowings in multiple coins, the system will repay the non-stable coins first according to the liquidity sequence, followed by stablecoins.
• If the MMR remains above 100% after the auto-repayment process, liquidation to derivatives position will step in. For more details, please refer to Trading Rules: Liquidation Process (Trading Account).