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Borrowing funds for your crypto trading can be an excellent capital efficiency measure. In many cases, it pays to borrow the cryptocurrency of your choice against collateral instead of buying it outright. Crypto loans can also help you access unique yield-generation opportunities, such as leveraged staking. Savvy traders and investors in crypto have long known that borrowing is one of the key avenues for improving the efficiency, flexibility and profitability of your operations.
Bybit offers you several ways to borrow cryptocurrency. These include flexible rate and fixed-rate overcollateralized crypto loans, Unified Trading Account (UTA) auto-borrowing, the Margin Staked SOL product and Launchpool Borrow & Stake. These options allow you to access crypto funds in highly efficient and flexible ways to support your trades, earn staking rewards or receive early-stage tokens for free.
In this article, we’ll look in detail at these four ways of borrowing funds with Bybit, and discuss their key features, use cases and benefits.
Key Takeaways:
Bybit offers a variety of crypto loans: Overcollateralized fixed-term and flexible term loans, UTA auto-borrowing for spot margin trades and meeting immediate order needs, Margin Staked SOL for leveraged Solana staking, and Launchpool Borrow & Stake for leveraged access to early-stage cryptos.
With Bybit loans, you can devise yield-boosting strategies instead of treating crypto borrowing as a passive tool for meeting fund shortfalls.
Bybit offers its users overcollateralized crypto loans, with both flexible and fixed-rate interest. Flexible crypto loans feature variable interest, updated hourly based on prevailing market conditions. Fixed-rate loans offer preset interest for borrowing tenures of 7, 14, 30, 60, 90 or 180 days, depending upon your preference.
Flexible rate loans are supplied directly by the Bybit platform, while fixed-rate loans are procured through Bybit’s peer-to-peer (P2P) lending service. Crypto lenders post their offers on Bybit P2P and specify their preferred conditions, such as the loan duration and interest rate. Borrowers may choose from the existing offers, or create a separate loan order with the interest rate and other conditions they’d like to access. The system then evaluates orders from lenders and borrowers in order to find the optimal match and connect the two parties.
Two types of loans with one interface
Since early May 2025, the two loan varieties have been integrated into a single user interface under a unified product umbrella called Crypto Loans. You can now use the same shared collateral to secure both flexible and fixed-rate loans. Your collateral can also be used across different markets and products on the platform, such as the Spot and Derivatives markets and Bybit staking products.
Both loan types also have the same loan-to-value (LTV) thresholds applicable for margin limits, margin calls and liquidation — 80%, 85% and 92%, respectively.
Margin limit specifies the maximum proportion of your collateral that you can borrow
Margin call level denotes the LTV ratio at which you’ll receive a notification to improve your position by adding more collateral or repaying your loan
The third value, the liquidation ratio, is the level at which your loan will automatically be liquidated.
Bybit offers a wide variety of crypto assets for borrowing and collateral, including stablecoins and the leading high-cap cryptocurrencies, such as Bitcoin (BTC), Ethereum (ETH), Solana (SOL), XRP (XRP) and Litecoin (LTC).
Interest rates for all Crypto Loans are compounded hourly. Fixed loans have a set rate in a range specified by the supplier and/or borrower, and flexible-rate loans are subject to a floating rate based on market conditions.
Flexible Crypto Loans are particularly useful for traders who wish to borrow with maximum flexibility and efficiency, repaying the amount when they find it most suitable based on their trading activity. For example, if you borrow funds for just 15 hours to facilitate some short-term trades, you’ll only pay interest for those 15 hours and not a single hour more.
On the other hand, Fixed-Rate Crypto Loans suit borrowers who would like to operate in complete certainty, regardless of market developments, by locking in a preset interest rate.
Borrowing funds is automatically enabled in certain scenarios under your Bybit Unified Trading Account (UTA). Automatic borrowing in the UTA is triggered when the following situations arise:
Insufficient balance to complete an initiated transaction
Unrealized losses arising under perpetual or futures contracts
A buy options limit order is placed without sufficient USDC funds in a wallet
Decrease in the value of USDC options positions
For margin borrowing in Bybit’s Spot Margin Trading
UTA loans aren’t available for manual borrowing; they’re only automatically triggered under the above scenarios. However, repayments are possible both in manual and auto modes. Interest rates for these loans are updated on an hourly basis.
One key benefit of UTA loans is their applicability to spot margin trading on Bybit. With spot margin trading, you can use assets in your spot account as collateral for leveraged trading with leverage ratios of up to 10x. Supported collateral assets include over 200 cryptocurrencies, including all high-cap coins.
UTA loans are ideal for leverage trading aficionados, and for active traders who place frequent orders and might find themselves short on funds during a particular trade. The auto-borrowing function of these loans ensures that your orders go through, even if there’s a shortfall of funds or specific assets in your wallet.
Bybit Margin Staked SOL allows you to use leverage to boost your Solana liquid staking yields. To use this product, you’ll need to commit your SOL funds to Solana staking, which Bybit will manage through the use of the Sanctum (CLOUD) smart contract. Sanctum is a leading provider of infrastructure and services for Solana staking.
You can borrow additional funds to stake with up to 4x leverage available. Upon staking, you’ll be issued the bbSOL liquid staking token (LST) that accrues your staking rewards.
The interest that you pay on the borrowed funds is updated hourly. All interest repayments are handled automatically, either when the user decides to stop staking or their losses reach 90% of their staked principal. You can redeem your SOL funds at any time.
Bybit also offers the Borrow & Stake option through its Launchpool. By staking your crypto funds and borrowing up to 3x of your principal, you can earn rewards through free tokens of projects offered via the Launchpool. Reward tokens for potential future market stars are usually issued for free by early-stage web3 projects.
Bybit’s Launchpool Borrow & Stake is extremely user-friendly, and it takes just a single click to borrow and stake. As with the other three methods of borrowing, the interest rate on your borrowed funds is subject to hourly updates.
The four Bybit loan options above each have unique benefits and use cases. Deciding which option best suits you will depend upon your trading strategy, goals, available capital, familiarity with spot margin trading, experience level and openness to leverage.
Crypto Loans allow you to execute your strategies without selling your assets.
UTA auto-loans help you meet your immediate trading needs without being restrained by the lack of precise amounts or coins, or access spot margin trading opportunities.
Margin Staked SOL lets you amplify your Solana staking rewards.
Borrow & Stake (via the Launchpool) gives you the chance to earn tokens of promising early-stage projects.
The below table summarizes the four loan products by user profile, primary use case and capital efficiency model.
| Crypto Loans (Fixed and Flexible-rate) | UTA auto-loans | Margin Staked SOL | Launchpool Borrow & Stake |
Ideal users | Active traders of all experience levels | High-frequency traders Spot margin traders | Users familiar with staking, and those open to using leverage | Users who would like to access early-stage tokens, and those open to using leverage |
Primary use case | Receive funds in target cryptocurrencies without selling your own crypto | Automatically trade more than you own, without restraints Utilize spot margin trading opportunities | Earn Solana staking yields with leverage | Earn early-stage tokens with leverage |
Capital efficiency mechanism | Borrow against existing holdings No need for regular swap operations to fund your strategies | Auto-borrow to fund relevant trades, instead of topping up your account for each opportunity | Efficiently scale your SOL staking with built-in leverage | Amplify token rewards through efficient crypto leverage |
Bybit’s Crypto Loan products are ideal — not just for borrowing, but also for utilizing your existing idle funds for margin trading and staking to amplify yields. Each product type applies to different potential scenarios:
Crypto Loans for accessing liquidity (without buying the required coins)
UTA Loans for meeting short-term order needs, and for spot margin trades
Margin Staked SOL for boosting Solana staking rewards
Launchpool Borrow & Stake for accessing potentially promising, early-stage cryptocurrencies
With the above loan options, crypto borrowing is no longer just about meeting fund shortfalls: now it’s a valid strategy to get the most out of your crypto trading.
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