**Margin Loans: Leverage Your Investments**

### What is margin?

In Webtransfer, margin refers to a participant’s own funds used for issuing loans, enabling them to obtain margin credits to enhance their credit capacity and potential profit. These funds provide an additional credit limit, increasing potential income from lending.

### How Margin Loans Work:

**Interest Rates:**Margin loan interest rates are floating and determined by supply and demand. The initial rate at the time of launch on**August 17, 2024**, is 0.15% per day.**Loan Amounts:**Loan amounts are also variable, up to 300% of the value of your credit certificate (three times the amount of your credit certificate or existing loans).**Loan Terms:**The minimum loan term is 10 days, and the maximum is 30 days.**Minimum and Maximum Loan Amounts:**The minimum credit certificate value for a margin loan in USDT is 50 USDT, and the maximum margin loan amount is 3000 USDT.

### Important Considerations:

**Late Payments:**If you fail to repay your margin loan on time, you will be charged interest for the entire loan period at the rate of your credit certificate. This can result in losses, so it’s crucial to repay loans promptly. After repayment, you can take out a new loan or pay the interest and extend the margin loan up to three times.**Profit Maximization:**Margin loans will soon be available for funds earned from bonus loans, further increasing your earning potential.

### Why Use Margin Loans?

Let’s illustrate the benefits with two scenarios:

**Scenario 1: Using Only Your Own Funds:**

Imagine you have issued a loan of 100 USDT at 0.25% interest for 30 days.

Your profit after deducting the 25% insurance pool contribution would be 5.625 USDT.

- 100 USDT x 0.25% x 30 days = 7.50 USDT (profit)
- 7.50 USDT – 1.875 USDT (25% insurance pool contribution) = 5.625 USDT (net profit)

This represents a 5.625% net profit on your initial investment of 100 USDT.

**Scenario 2: Using Margin:**

Now, let’s say you obtain a 300% margin loan and issue a loan of 400 USDT under the same conditions. Your profit after deducting the insurance pool contribution (25%) and margin interest (0.15% per day) would be:

- 100 USDT x 0.25% x 30 days = 7.50 USDT (profit from your initial 100 USDT)
- 300 USDT x 0.25% x 30 days = 22.50 USDT (profit from the 300 USDT margin loan)
- 7.50 USDT + 22.50 USDT = 30.00 USDT (total profit)
- 30.00 USDT – 7.50 USDT (25% insurance pool) = 22.50 USDT (after insurance pool contribution)
- 22.50 USDT – 13.50 USDT (margin interest) = 9.00 USDT profit on your initial 100 USDT.

Your profit increased by 60%, reaching 9% on your initial 100 USDT investment, compared to 5.625% without using a margin loan.

### Risks and Mitigation:

While margin loans can significantly increase your earnings, it’s important to use them cautiously.

**Insurance Coverage:**Remember that only the principal amount of your own loans is covered by the insurance pool, along with 10% annual interest (0.027397% per day). Margin loans are not covered by the insurance pool. According to our rules, loans issued using margin credits are excluded from insurance coverage in the event of non-repayment. However, in practice, such loans are granted only with the collateral of borrowers’ credit certificates.**Risk Management:**To minimize risk, consider issuing smaller loans and varying loan terms.

### Recommendation:

Margin loans are best suited for experienced users who understand the risks involved. Carefully assess your risk tolerance and make informed decisions.

### Disclaimer:

Webtransfer is not responsible for any losses incurred due to the use of margin loans.

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