How Interest and Debt Calculated in Bitget Spot Margin Trading?

[Estimated Reading Time: 3 mins]

This guide explains how interest and debt work in Bitget’s spot margin trading. Learn how interest is calculated, how to monitor your debt and risk, and how to reduce borrowing costs effectively.

Understanding Margin Debt and Interest

In spot margin trading, your total debt is the combined value of the assets you’ve borrowed and the interest accumulated over time.

Formula: Total debt = Loan amount + Accrued interest

Key points:

• Interest is calculated hourly

• Each coin has a variable interest rate, updated in real time

• Rates depend on market demand, risk levels, and liquidity

Bitget uses a variable rate model to reflect current market conditions. This ensures that interest rates remain fair and responsive to market risks.

How to Calculate Interest and Repayment?

Interest is calculated every hour and rounded up to the nearest full hour.

Formula: Interest = Loan amount × (Daily interest rate ÷ 24) × Number of hours

Example:

• Loan: 10,000 USDT

• Daily interest rate: 0.0126279%

• Borrowed at 00:10 AM, repaid at 2:30 AM (3 full hours)

• Interest = 10,000 × (0.0126279% ÷ 24) × 3 = 0.15784875 USDT

• Total repayment = 10,000 + 0.15784875 = 10,000.15784875 USDT

Note: Bitget prioritizes interest repayment first. After the interest is covered, the remaining balance repays the principal. You can check up-to-date interest rates for all supported pairs here: View current margin interest rates

How to Track your Loan and Interest?

You can monitor your margin activity and interest accrual in real time using two methods:

Method 1:

• Navigate to the Assets tab in the margin trading page

• Select the coin to view current loan, interest, and total debt

Method 2:

• Open your margin account

• Go to the specific trading pair

• View details of your borrowed amount, interest, and repayment progress

Staying on top of your loan and interest data helps prevent risk ratio deterioration and unexpected liquidations.

How Rate Changes Affect your Loan?

Interest rates are applied hourly. If the rate changes, the new rate takes effect at the start of the next full hour—not retroactively.

Example:

• Borrow 1 BTC at 1:30 AM @ 0.1%

• Rate drops to 0.05% at 3:40 AM

• Repaid at 4:50 AM

Calculation:

• 1:30–3:59 AM (3 hours) @ 0.1% = 0.000125 BTC

• 4:00–4:50 AM (1 hour) @ 0.05% = 0.00002083 BTC

• Total interest = 0.00014583 BTC

• Total repayment = 1.00014583 BTC

How Interest Affects your Risk Ratio?

Interest increases your total debt, which directly affects your margin risk ratio. A lower risk ratio raises the risk of liquidation. It's crucial to:

• Monitor your account’s risk ratio regularly

• Repay loans and interest in a timely manner

How to Calculate the Transferable Amount after Borrowing?

You can transfer funds out of your margin account only if the following conditions are met:

• There are no platform-imposed transfer restrictions

• Your net assets exceed your total debt

• Formula: Transferable amount = Net assets – Total debt

• Net assets = Total assets – Liabilities, calculated in USDT

Example:

• Total assets: 1,000 USDT

• Debt: 300 USDT

• Net assets: 700 USDT

• Transferable amount = 700 – 300 = 400 USDT

Important note:

When you close a margin position, Bitget executes a market order in the opposite direction:

• Closing a long position: The system will sell the asset.

• Closing a short position: The system will buy back the borrowed asset.

How to Reduce your Margin Trading Interest Costs?

Bitget provides tools and strategies to help you minimize interest expenses when trading on margin:

1. Apply margin interest discount coupons

You can reduce or even eliminate interest charges by using cut-rate margin coupons.

• Visit your Coupons Center to check for available spot margin interest discount vouchers.

• These coupons offer interest reductions based on the defined amount, duration, or specific asset.

Tips: Make sure to claim and apply your coupons before placing a margin trade.

2. Compare interest rates before borrowing

Interest rates can vary between different assets and trading pairs. Reviewing the latest rates helps you make informed and cost-effective borrowing decisions.

• Check the current rates on the Live interest rates for margin trading page.

Tips: Choosing lower-interest pairs can significantly reduce your overall cost, especially in longer-term positions.

FAQs

1. How is interest calculated in spot margin trading?
Interest is calculated hourly using this formula: Interest = Loan amount × (Daily interest rate ÷ 24) × Number of full hours

2. When does interest start accruing?
Interest begins accruing from the moment you borrow. It is calculated and charged at the start of each full hour.

3. If I repay within 30 minutes, will I still be charged interest?
Interest is always rounded up to the nearest full hour, even if you borrow for less than one hour.

4. Can the interest rate change while my loan is active?
Bitget uses a variable rate model. If the rate changes, the new rate applies from the next full hour, not retroactively.

5. What happens if I don’t repay the interest in time?
Unpaid interest adds to your total debt, which can lower your margin risk ratio and increase the risk of liquidation.

6. What is the repayment order — interest or principal first?
Bitget always repays interest first, followed by the principal. Ensure you repay enough to cover both.

7. How can I reduce my interest costs?
You can use interest discount coupons or choose trading pairs with lower daily interest rates to reduce borrowing costs.

8. Will closing a position automatically repay the loan?
Closing a position triggers a market order in the opposite direction, but you still need to manually repay any outstanding interest or loan.

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