Bybit Boosts Collateral Ratios on Large Positions
Bybit has increased its collateral ratios on larger asset positions under its Unified Trading Account Loans. The changes, which took effect on August 4 at 8:00 UTC, allow traders to have more of their cryptocurrency holdings recognized when calculating borrowing capacity.
The largest change concerns holdings above Bybit's previous highest position tier. Assets exceeding that threshold had carried a collateral ratio of zero, meaning the excess position added nothing to the account's recognized collateral value. Bybit has now assigned those supersized tiers ratios ranging from approximately 10% to 80%, depending on the asset.
The increase in collateral ratios gives customers more usable margin without requiring them to sell the underlying assets. However, it does not create unlimited borrowing capacity. Bybit's UTA borrowing rules state that an individual limit is determined by the lowest of three figures: the customer's account-tier limit, the position-tier limit for the borrowed cryptocurrency and the liquidity remaining in the platform's lending pool.
The change is especially meaningful for institutional clients, said Yoyee Wang, Vice President of TradFi-RWA at Bybit. 'This update is especially meaningful for our institutional clients. With the increased Collateral Ratio, we're enabling institutions to pledge more of their holdings as effective collateral and access greater borrowing capacity for trading.'