[//]:content-type-MARKDOWN-DONOT-DELETE  Gate.io's lending service is an innovative way to borrow money using cryptocurrency. It helps users with their need for quick cash and makes better use of their funds. Now, Gate.io has started a new feature where users can use different types of cryptocurrencies as collateral. This means they can borrow more money and have more options when borrowing. ## What is Multi-Currency Collateral? Multi-Currency Collateral allows users to use different types of cryptocurrencies as security for the same loan. This is different from the traditional single-currency collateral, where only one type of cryptocurrency can be used. The multi-currency option gives users more choices, letting them mix different types of assets as collateral based on their own asset mix and risk preference. ## Advantages of Multi-Currency Collateral Compared to the traditional single-currency collateral model, Gate.io's multi-currency collateral has these benefits: **1. Higher Utilization of Funds:** With multi-currency collateral, you can use all your idle cryptocurrencies as security in the same order. The platform also allows borrowing again on the same collateral. This maximizes the use of your existing collateral and helps better with cash flow. **2. Lower Costs for Managing Positions: **Since you can use multiple cryptocurrencies as collateral in the same position and borrow different currencies in that position, you'll have fewer positions to manage. This reduces the cost of managing these positions. **3. User-Friendly Liquidation System:** The multi-currency collateral uses a graded liquidation system similar to 'margin trading'. This system protects your collateral as much as possible and prevents it from being sold off quickly, providing a more user-friendly borrowing experience. ## Common Questions about Multi-Currency Collateral **1. How is the value of collateral calculated in multi-currency collateral?** In multi-currency collateral, the value of collateral (or total margin) is calculated differently than in single-currency collateral. It’s the sum of the collateral quantity of each cryptocurrency multiplied by its current index price and the corresponding margin coefficient. **2. How is the maximum loan amount calculated in multi-currency collateral?** The maximum loan amount is calculated as (value of existing collateral * 70% - value of existing loan assets) divided by the current index price of the borrowed currency. **3. How is the collateral ratio calculated in multi-currency collateral?** The collateral ratio is the value of loan assets divided by the value of existing collateral, multiplied by 100%. **4. What are the initial collateral ratio, warning collateral ratio, and liquidation collateral ratio in multi-currency collateral?** In multi-currency collateral, like in single-currency, the initial collateral ratio is 70%, the warning collateral ratio is 80%, and the liquidation collateral ratio is 90%. **5. What is the collateral limit for each currency in multi-currency collateral?** The collateral limit for each currency is the same as in single-currency collateral, which is the lesser of the available amount in your spot wallet and the remaining collateral limit for that currency. **6. What is the loan limit for each currency in multi-currency collateral?** The remaining loan limit for each currency is the same as in single-currency collateral, which is the lesser of the platform's remaining loan amount for that currency and your personal loan limit. **7. How can you re-borrow on the same position in multi-currency collateral?** If your collateral ratio is below 70%, it means you have remaining collateral. You can re-borrow in the same position without adding more collateral until the collateral ratio reaches 70%. You can also add more collateral during re-borrowing to support a larger loan. **8. What happens when the liquidation collateral ratio is reached in multi-currency collateral?** If the collateral ratio reaches the liquidation level of 90%, the platform will execute a "gradual reduction" liquidation. It means that if the loan amount is large, it won’t be liquidated all at once. Instead, the platform will reduce the position gradually, starting with the largest debt. **9. Will I receive a notification if my position triggers a warning or liquidation?** Yes, you will receive an in-site message and email notification if your position triggers a warning or liquidation. Gate.io's multi-currency collateral for loans is an innovative lending service. It offers users more choices, higher fund utilization, a user-friendly liquidation process, and a more flexible borrowing experience. We invite you to try this mode for a better lending service. **Please note: **Financial management carries risks. This text does not constitute investment advice, and Gate.io reserves the right to final interpretation. Gateway to Crypto Trade over 1,700 cryptocurrencies safely, quickly, and easily on Gate.io Download Gate.io [App](https://www.gate.io/mobileapp?ch=ann28618 "App") / [Web](https://www.gate.io/mobileapp "Web") Client now>>> Follow us on [Gate.io X (Twitter)](https://twitter.com/gate_io "Gate.io X (Twitter)") to get more bonuses>>> Join our [Telegram](https://t.me/gateio_en "Telegram") to discuss hot topics>>> Join our [Global Community](https://www.gate.io/community "Global Community") to get more updates>>> We provide [100% proof of reserve](https://www.gate.io/proof-of-reserves "100% proof of reserve")>>> [Sign up](https://www.gate.io/signup "Sign up") to enjoy max. $6666 in rewards exclusively for new users Get 40% commission from [referrals](https://www.gate.io/referral "referrals") Gate.io Team December 26th, 2023