Introduction to Coincall Auto Earning Product

“Auto Earning” is a product launched by Coincall to assist users with idle assets in generating income through coin earnings. It is simple, safe, and stable. The system takes a snapshot of the user's available USDT balance every minute and calculates and distributes interest income on an hourly basis. Users do not need to perform any operations.

1. "Earn" and "Loan"

In the use of Auto Earning, there is no need for any "Lending," "Redeeming," "Borrowing," or "Returning" operations. The system takes periodic snapshots and automatically determines whether it is an "Earn" or "Loan" based on the account asset situation at the time of the snapshot. Interest is Earned to "Earn" and fees are deducted from "Loan". Whether "Earn" or "Loan," the assets remain in the user's wallet, ensuring absolute security. 

“Earn”: Whether in the single-currency account mode or multi-currency account mode, the USDT currency's withdrawable balance in the account is considered an "Earn" if positive. The Earning amount is the entire withdrawable balance of the USDT in the account, used for interest calculation and distribution.

• Only USDT is supported for Earning.
• "Earning" does not affect the withdrawable balance and available margin of USDT, nor does it impact normal deposits, withdrawals, and trading activities.
• Due to account activities like deposits, withdrawals, trading, and unrealized profits and losses, the USDT withdrawable balance is dynamically changing. A decrease in the USDT withdrawable balance is equivalent to "Redemption", while an increase is equivalent to "Lending", and this happens automatically without any action required from the user. 

For example, if Account A deposits 1,000 USDT and has no open positions or orders, A is considered "Earn", and interest is calculated based on the snapshot of lending 1,000 USDT. If A withdraws or trades, resulting in a withdrawable balance of 500 USDT, interest is calculated based on 500 USDT.

“Loan”: In the multi-currency margin account mode, when users engage in perpetual contracts or options, they may incur a USDT Loan due to insufficient net value of USDT assets, even if other currency assets are sufficient. This is referred to as "Loan".

• The "Loan" currency is only USDT.
• USDT Loan = Min(0, (Net value of USDT assets - Initial valuation of option buyer))
• The net value of assets includes the profits and losses from derivative transactions such as perpetual contracts and options. Losses in derivative trading result in a Loan.
• Similar to the Earn scenario, the USDT Loan changes in real-time based on account activities, and a decrease in USDT Loan is equivalent to "returning". At the same time, an increase is equivalent to "borrowing," and this process occurs automatically without any action required from the user. 

Example 1: Account A deposits 500 USDT (no other currencies)/ Account A uses single-currency Mode.

User accounts with only USDT will not have Loan calculated.

Example 2: Account B deposits 1 BTC, equivalent to 40,000 * 0.95 = 38,000 USDT.

B trades perpetual contracts, with a Unrealized PnL = -500 USDT, resulting in a Loan of 500 USDT.

If the Unrealized PnL = -1,000 USDT, the Loan becomes 1,000 USDT.

If the Unrealized PnL = 600 USDT, the Loan becomes 0.

Example 3: Account C deposits 500 USDT and 1 BTC, equivalent to 500 + 40,000 * 0.95 = 38,500 USDT.

Scenario 1: C trades perpetual contracts with an Unrealized PnL = -480 USDT.

At this point, the loss does not exceed the user account's USDT net value of 500 USDT (480 < 500), so the user does not incur a Loan.

Scenario 2: C trades perpetual contracts with an Unrealized PnL = -600 USDT.

At this point, the loss exceeds the user account's USDT net value of 500 USDT (600 > 500), resulting in the user incurring a Loan of （600 - 500） = 100 USDT.

2. Interest Calculation and Deduction

Interest Calculation and Deduction

• 1. A snapshot is taken every minute, capturing the total Loan and USDT pool of all accounts on the platform. The system matches the Earn and Loan interest rate levels based on the set Loan interest rate level.
• 2. Interest calculation and deduction occur on the hour.
  
  • Platform total Loan = Sum (all account Loan)
  • Platform total USDT pool = Sum (all withdrawable balances of Earn account)
  • Capital utilization rate = Platform total Loan / Platform total USDT pool * 100%
  • Earn & Loan's interest rate level is determined by the platform USDT Earn & Loan information at that time, and Coincall will update it based on Earn & Loan supply and demand.
  • Loan account interest deduction at time T = Loan amount of that account at time T * Loan interest rate level / 365 / 24
  • Earn interest rate level = 95% * Loan interest rate level * Capital utilization rate, with the remaining 5% as the platform operating cost.
  • Earn account interest calculation at time T = Interest earned = Withdrawable balance of that account at time T * Earn interest rate level / 365 / 24

Interest calculation and deduction occurred at 16:00:

• If Account A has a withdrawable balance of 1,000 USDT at that time, the Earn interest for Account A = 1,000 * 5.7% / 365 / 24 = 0.00650684 USDT.
• If Account B has a Loan of 500 USDT at that time, the Loan interest for Account B = 500 *8% / 365 / 24 = 0.00450021 USDT.

3. "Earn" and "Loan" History Inquiry

Clicking on "Last Day Earnings" on the wallet page allows users to access the "Earn&Loan" page. 

Risk Warning:

1. In the Multi-currency margin account mode, if a user's USDT asset net value is insufficient, the user will automatically become a "Loan". When calculating the user's margin, the corresponding portion of the non-USDT currency assets will be frozen, and withdrawals will be unavailable. After the user closes the position, withdrawals can be made.

2. "Loan" users under the Multi-currency Margin mode get bankruptcy.

Specifically, when ∑(non-USDT currency assets * index price * discount rate) ≤ USDT loss amount, the platform's risk control engine will forcibly liquidate all non-USDT currency assets in the account and convert them into USDT to repay the debt. The user will have a record of the currency conversion in the account and receive an email notification.