This article addresses our spot margin offering. Learn more about Coinbase’s spot margin experience.
Margin trading is high risk and is not suitable for everyone. Leverage amplifies losses as well as gains, and you could lose all of your collateral, or more. If your margin reaches the liquidation threshold, we may sell your collateral without further notice. Depending on where you live, margin loans may be unregulated, with no regulatory recourse. Before you start, read the spot margin risk disclosures and who provides your spot margin services.
Interest applies while you have an open margin loan. Trade fees match regular spot trading, and a liquidation fee applies if you're liquidated.
How interest works
Paid in kind: Interest is charged in the asset you borrowed.
Accrues hourly: Interest builds every hour on outstanding loans.
Charged every 6 hours: Accrued interest is charged in one payment every 6 hours.
Not compounded before it's charged: Interest accrues only on outstanding loans, not on interest that hasn't been charged yet.
Added to your loan once charged: If you owe 1 Bitcoin (BTC) and 0.00001 BTC has accrued, your loan becomes 1.00001 BTC and accrued interest resets to 0.
Interest rates
Interest rates are subject to change and may vary by asset. Current rates for each loan are on the Borrows tab. You can view interest rates pre-trade by hovering on the Borrow Amount field in order preview.
Rates display per hour. To see the annual rate, hover over the interest rate tooltip, or multiply the hourly rate by 24 and 365. For example, a 0.001% hourly rate is 0.001% × 24 × 365 = 8.76% a year.
Repaying a loan
When you close a loan, repay any accrued interest that hasn't been charged yet. This avoids another charge at the next 6-hour mark.
Fees
Trade fees: Same as spot trading. Advanced spot fees can be viewed here.
Liquidation fee: 1% liquidation fee applies to the total liquidation amount.
Convert to repay: A fee applies the same way as regular spot trading.
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