Collateral and Lending

Users can borrow USDT on the platform by collateralizing cTIA with a 60% loan-to-value ratio (LTV). Users can use the borrowed USDT freely.

Content	Collateral Ratio	Liquidation Rate	Additional Collateral Rate	Interest Rate	Loan fees
Collateralize cTIA and Borrow USDT	60%	85%	68%	12%	0.05%

For example, if a user collateralizes cTIA with a total value equivalent to 10,000 USDT, they can borrow 6,000 USDT with a 12% annual interest rate, resulting in 720 USDT in interest. The lending fee is 0.05% of the loan amount, which equals 3 USDT. The fee goes to the platform, and the lending interest may go to the platform or the funding provider.

Liquidation

When the price of cTIA drops to a level where it no longer covers the borrowed USDT, an automatic liquidation is triggered, selling TIA on-chain to repay the USDT. The liquidation threshold is set at 85%, meaning when (borrowed assets + accumulated interest) / collateral assets ≥ 85%, the platform automatically initiates the liquidation process. After liquidation, any remaining USDT is returned to the user.

Additional Collateral

When (borrowed assets + accumulated interest) / collateral assets ≥ 68%, the user is required to deposit additional cTIA as collateral or repay the borrowed assets.

When the lending business scale exceeds 5 million USDT, the C2C lending will be activated. Users can invest their idle USDT funds into the waiting-to-lend USDT pool, earning a base return. The higher the demand for lending, the higher the yield on the waiting-to-lend USDT.