BEQUANT operates two risk models to manage loans: ‘Loan-To-Value’ - LTV Ratio and Spot-vs-Future (SPV) - for which we refer to the Risk ratio. This article lists the most important features of both models, including: which clients are associated with which model, eligible collateral and discounts. For a more detail view of model methodology please see respective links:

LTV : https://outline-01.bqtstuff.com/doc/loan-to-value-model-in-use-W9URIGmkoV

SPV: https://outline-01.bqtstuff.com/doc/spot-vs-future-cross-margin-model-U8GR6GbxtX

Loan-To-Value Model

The Loan-To-Value ratio represents the ratio of the market value of the digital assets that the client has borrowed, to the market value of the total sum of the Eligible Collateral, including the loan amount.

Eligible Collateral

Eligible collateral is an asset that a lender accepts as security for a loan. If the borrower defaults on the loan payments, the lender can seize the collateral and resell it, to recoup the losses.

Here is a list of current eligible collateral (available to all):

The below list details clients for which we primarily operate the Loan-To-Value’ (LTV) model for (please note that this list is due to be updated). Further the

  • Profluent

  • Coinzoom

  • Algoquant

  • Arbdesk Limited - No active loans

  • Wert (will be moved to SPV shortly)

  • Vasin PB (will be moved to SPV shortly)

  • Coindex

Eligible Collateral

Eligible collateral is an asset that a lender accepts as security for a loan. If the borrower defaults on the loan payments, the lender can seize the collateral and resell it, to recoup the losses.

Here is a list of current eligible collateral:

  1. BTC

  2. ETH

  3. TUSD

  4. BCH

  5. EOS

  6. USDT

  7. XBT

  8. USDT20

  9. USD ($)

  10. LTC

  11. ADA

  12. XRP

  13. DAI

  14. SOL

  15. BNB

Further, the below shows the active clients for who this is the primary model and the additional eligible collateral for the respective clients:

Custom Eligible Collateral (LTV)

Profluent

Coinzoom

Algoquant

Arbdesk Limited - No active loans

TRY

BAT

CAKE

FTM

AUD

PAX

YGG

NEAR

RUB

USDC

OMG

GYEN

XLM

DAI

LINK

PAX

MKR

XLM

BCH

MANA

YFI

BAT

ZEC

ALGO

ZRX

BTC

KNC

ETH

OMG

LINK

USDC

OMG

UNI

XRP

ALGO

EOS

BCH

EURB

XLM

LTC

USD

TRX

LTC

TUSD

XRP

USD

EOS

BNB

HBAR

USDT

KNC

WBTC

YFI

ATOM

ZRX

EUR

GBP

LUNA

MATIC

SOL

HUSD

Spot-vs-Future (SPV) Model

The Risk Ratio represents the ratio of the market value of the digital assets that the client has borrowed, to the market value of the total sum of the discounted Collateral value, including the loan amount. The discount is often referred to as the total margin - and represents the costs of holding each position (evaluated at coin level) in the event that Bequant .

All clients not listed under the Loan-to-Value model will be listed under Spot vs Future. The Eligible collateral and associated discounts can be found in the table below. If a coin is not in the below list, a discount of 100% is applied to both hedged and un-hegdged position.

Eligible Collateral & Discounts (SPV)

NB! This list will be updated monthly

Currency

Discount Hedged (in %)

Discount Unhedged (in %)

Group

BTC

3

7.1

BTC

ETH

3

9.6

ETH

XRP

3

14.3

XRP

USDT

0

0

USD StableCoin

SOL

3

18.4

SOL

ADA

3

14.5

ADA

BNB

3

13.1

BNB

LUNA

3

22.2

LUNA

USDC

0

0

USD StableCoin

DOT

3

13.9

DOT

DOGE

3

24.4

DOGE

LINK

3

12.8

LINK

UNI

3

13.3

UNI

AXS

3

28.2

AXS

ICP

3

13.7

ICP

FTT

3

11.7

FTT

XLM

3

11.3

XLM

MATIC

3

20.8

MATIC

ALGO

3

15.5

ALGO

LTC

7

11.1

LTC

QNT

3

20.3

QNT

ATOM

3

17

ATOM

BCH

3

9.6

BCH

GRT

3

16.9

GRT

FIL

3

14.4

FIL

DAI

0

0

USD StableCoin

CELO

3

23

CELO

XTZ

3

16

XTZ

AMP

3

24.2

AMP

AAVE

3

13.1

AAVE

1INCH

3

21.6

1INCH

CRV

3

19.3

CRV

CEL

3

15.5

CEL

RUNE

3

27.6

RUNE

HBAR

3

22.6

HBAR

COMP

3

22.2

COMP

LEO

3

9.7

LEO

UST

0

0

USD StableCoin

SUSHI

3

27.2

SUSHI

MKR

3

16.6

MKR

SNX

3

23.1

SNX

ONE

3

30

ONE

OMG

3

24.1

OMG

MANA

3

20.3

MANA

TUSD

0

0

USD StableCoin

TRX

3

14

TRX

GYEN

0

0.7

GYEN

USDB

0

0

USD StableCoin

USDT20

0

0

USD StableCoin

BUSD

0

0

USD StableCoin

HUSD

0

0

USD StableCoin

EURB

0

0

EUR StableCoin

EUR

0

0

EUR StableCoin

USD

0

0

USD StableCoin

AVAX

3

18.8

AVAX

CRO

3

13.5

CRO

GALA

3

8.1

GALA

FTM

3

24.8

FTM

RLY

3

18.7

RLY

HNT

3

20.5

HNT

JASMY

3

7.3

JASMY

RBN

3

6

RBN

MIOTA

3

16.7

MIOTA

EOS

3

13.1

EOS

RAY

3

8.1

RAY

XRD

3

13.9

XRD

ENS

3

2.3

ENS

NU

3

17.1

NU

PAX

0

0

USD StableCoin

THETA

3

15

THETA

IOTA

3

15

IOTA

STX

3

16

STX

FLOW

3

17

FLOW

BSV

3

14

BSV

ENJ

3

15

ENJ

AR

3

19

AR

MINA

3

16

MINA

Loan Types

Currently, BEQUANT Pro offers five types of loans to clients.

Leveraged loan

This is a loan that constitutes a multiple of the existing user assets to be held in their BEQUANT account.

Credit Line

This is a facility for asset loan which constitutes a multiple of the existing user’s assets held in their BEQUANT Pro account, custodied with multiple exchanges, and for use with BEQUANT asset services on a rolling basis. Customers can use any part of the credit line granted to them, up to the total amount of the credit limit.

Single platform leveraged loan or loan facility

Single platform loans and facilities are dedicated to a unique venue, whereby the existing user assets held in such venues, will not amount to less than 10% of the loan or loan facility amount.

Uncollateralized Loan

This type of loan; a BEQUANT Exchange product, is only available for longstanding customers, who can benefit from interest-free, post-trade limits, regardless of the provision of collateral, with pre-agreed settlement terms and no option to withdraw funds.

Off-platform Swaps

BEQUANT may enter a cryptocurrency swap, which is a process of exchanging one digital asset for another between two wallets, without using fiat currency as an intermediary. Cryptocurrency swaps are usually performed using a cryptocurrency trading exchange or a swapping platform, to allow quick, coin-to-coin transactions.

Available Assets

Available assets are the amount of your eligible collateral that are available for withdrawal or to use for trading. If the amount turns negative, you must top up your account with eligible collateral, equal to this amount (margin call amount).

Margin calls and Liquidation Rules

BEQUANT monitors two LTV levels: 1) Initial and 2) Liquidation.

These levels can vary, depending on the amount, the type of collateral posted, and the terms of the loan granted.

If your Loan-to-Value ratio falls below the initial LTV Level, BEQUANT will issue you with a margin call. You have 12 hours to add additional funds to your account. These additional funds serve the purpose of raising your LTV ratio back above the initial level.

If your Loan-to-Value ratio falls below the liquidation LTV Level, or if you have not responded to a margin call within twelve hours, BEQUANT reserves the right to commence the liquidation of your account until it is determined that a sufficient portion of the loan has been repaid.

Sensible risk management should be utilised when using leveraged positions.

Loan Process

§ To request a leveraged loan, contact [email protected]

§ Your account manager will discuss the terms of the loan with you

§ You may be asked to complete a loan questionnaire and provide financial or other information BEQUANT requires

§ Once the Loan is approved, you will need to sign a loan agreement and confirmation of a digital assets loan

§ The loan amount will then be credited to your account

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