BitFrog Margin Financing Introduction

1. About BitFrog Margin Financing

Traditional brokerages provide margin financing services (borrowing money to buy stocks). BitFrog offers a similar margin financing feature for crypto trading.

Users only need to provide collateral, and the platform will allocate additional funds at a certain multiple. The total funds will then be injected into the margin financing trading account, allowing users to trade directly on the BitFrog platform. The platform charges only daily interest.

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2. Benefits of Using Margin Financing

(1)Break Through Exchange Position Limits

Exchanges impose restrictions on the maximum contract position.

For example, on Binance ONT/USDT:

• At 20x leverage, the maximum position is 50,000 USDT

• At 10x leverage, the maximum position is 125,000 USDT

If a trader’s account only has 3,000 USDT in collateral, it is impossible to open a 60,000 USDT position.

With BitFrog Margin Financing, the trader can provide 3,000 USDT as collateral and obtain 1x financing (an additional 3,000 USDT), raising total trading capital to 6,000 USDT. Combined with the exchange’s 10x leverage, this allows the trader to open a 60,000 USDT position.

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(2) Solve trader capital shortages

In a bull market, many traders lack sufficient funds and usually seek investors. In crypto, the typical profit-sharing ratio between traders and investors is 30% : 70%.

Case Comparison:

• If initial capital is 1,000,000 USDT, and it doubles in 3 months (profit = 1,000,000 USDT):

  • Trader earns 300,000 USDT

  • Investor earns 700,000 USDT

• With BitFrog: If you provide 500,000 USDT as collateral, you can obtain 500,000 USDT financing (1x). Total = 1,000,000 USDT. After doubling in 3 months, profit = 1,000,000 USDT. The platform only charges interest (rate referenced to Binance BTC/USDT perpetual funding rate).

Interest Example (rate 0.05%): 500,000 (financed funds) × 0.0005 (rate) × 3 (daily settlements) × 90 (days) = 67,500 USDT

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(3) Avoid high perpetual contract funding rates

During “altcoin season” in bull markets, perpetual contract funding rates can soar, sometimes reaching 4.00%, settled every 4 hours.

Example Comparison:

• Using 10,000 USDT to open a 3x leveraged perpetual long and holding for 1 day:

  • Even if you profit 10,000 USDT

  • You must pay 7,200 USDT in funding fees

  • Net profit = 2,800 USDT

• With BitFrog: Provide 10,000 USDT as collateral, obtain 20,000 USDT financing (2x), total = 30,000 USDT. By buying spot instead of holding a costly perpetual contract, you avoid high funding fees.

Interest Example (rate 0.05%): 20,000 × 0.0005 × 3 = 30 USDT

Net profit = 9,970 USDT, far higher than 2,800 USDT.