Margin Funding on Bitfinex allows users with Intermediate verification level* and above to provide funds through the peer-to-peer (P2P) funding platform for traders to use in Margin Trading. Funding providers will thereby earn interest that is generated from their provided funds.
- The Intermediate verification level is required to access Margin Trading. This applies to users who created an account after March 1, 2022.
- The Basic Plus verification level is required for accounts created between January 1st, 2022 and March 1st, 2022.
- Accounts created before these dates will be able to continue without having to upgrade their verification levels.
How to use Bitfinex Margin Funding
Step 1: Make a deposit
To provide funds, you will firstly need to ensure that you have funds in your Bitfinex account. You can learn how to make a deposit here:
Note: For cryptocurrency deposits, you can choose to create a deposit address for your Funding Wallet.
Step 2: Move funds to Funding Wallet
There are different wallets on the Bitfinex platform, all with different purposes. The Funding Wallet is used for providing margin funding/financing to other traders. If needed, you can move your funds easily between wallets free of charge. Learn more in our guide How to transfer funds between Bitfinex wallets.
Step 3: Create a funding order
Go to the Funding page to find the Funding order form. Here, you will specify the details of your funding order. This includes:
- Rate: This is the interest rate that you can manually enter. You can view the current funding market via the funding book;
- Period: This is the duration that you wish to borrow your funds out for, the minimum is two days, and the maximum is 120 days;
- Amount: The number of funds that you will be making available in the current offer.
For more details on the process of creating a funding order, please refer to our guide What is Margin Funding.
Step 4: Wait for your trade to match
After creating an order, it will be placed in the order book and will match the same rate and period bid.
Step 5: Track funding interest
Funding interest is calculated using following formula:
amount * rate% * (seconds / seconds in a day) * (1 - fee%)
What is the Margin Funding supply at Bitfinex
If all of the offers in the funding book are used up, and no new funding is available to sustain active margin positions, Bitfinex would become the lender of last resort for already active positions that need financing.
If you have any questions, please feel free to contact Bitfinex Support.