The major cryptocurrency exchange’s margin trading branch, Binance Margin, announced a promotion exempting one-hour interest for Bitcoin (BTC) and 11 altcoins. Among the selected altcoins are popular ones like Dogecoin (DOGE), Ethereum (ETH), and Chainlink (LINK), Solana (SOL).
One-Hour Interest Exemption Introduced at Binance Margin
Binance’s margin trading branch, Binance Margin, today announced a new one-hour interest exemption promotion valid from 12:00 PM local time today until 12:00 PM on December 18th, for BTC, DOGE, ETH, GALA, GMT, LINK, MATIC, ORDI, SEI, SOL, TIA, and XRP.
During the one-hour interest promotion period, all users borrowing Bitcoin and any of the coins DOGE, ETH, GALA, GMT, LINK, MATIC, ORDI, SEI, SOL, TIA, or XRP at Binance Margin will not incur any interest for the borrowed amount for a duration of one hour. After the promotional period ends, the one-hour interest exemption will not be available for use.
How Will the Interest Exemption Be Calculated?
Let’s consider the example of User A and User B, who both borrowed 10 BTC each from Binance Margin today at exactly 12:20 PM. Let’s assume that both User A and User B closed their loans on the same day at 1:15 PM and 12:55 PM, respectively. Considering that interest accrues at the start of each hour at Binance Margin, under normal circumstances, User A and User B would respectively incur two hours and one hour of interest on their debt.
Assuming the hourly interest rate for borrowing BTC is 0.001%, User A would be charged an interest of [0.001% * 10 BTC * (2 – 1) hour] = 0.0001 BTC because users will automatically be exempt from the one-hour interest fee during the promotion period.
On the other hand, User B, who repaid their debt within the first hour, would not have any interest applied, with a calculation of [0.001% * 10 BTC * (1 – 1) hour] = 0 BTC.
