TL;DR
Interest is simple and accrues daily on the original borrowed amount (principal only) at a rate of ~0.0199% per day (7.25% APR ÷ 365). The base for the calculation never changes: accrued interest is not added to the principal, so the daily interest charge stays the same as your total debt grows. The first accrual runs 24 hours after loan creation, so opening and fully repaying within the same 24-hour window incurs no interest. There are no mandatory periodic payments. Repay partially or in full at any time, with no penalty. Partial repayments apply to accrued interest first, then principal. Collateral is released only after full repayment. You can also top up collateral to lower your LTV or reduce collateral as long as the resulting LTV stays at or below 50%.Quick facts
How does interest work?
- Interest is simple: it accrues daily on the original borrowed amount (principal only). Previously accrued interest is not added to the calculation base.
- This means the daily interest charge is constant for the life of the loan: even as your total debt grows, each 24-hour accrual is the same amount, calculated as
principal × (0.0725 / 365). - The daily rate is
0.0725 / 365 ≈ 0.0199%. - Each accrual runs exactly 24 hours after the previous one, starting from the loan creation timestamp (not at midnight UTC).
- Same-day repayment is free of interest. If you open a loan and fully repay it before the first 24-hour accrual runs, no interest is charged. The interest accrues per 24-hour cycle, not per calendar day, so it is only added once a full cycle has elapsed.
- There are no mandatory periodic payments.
- Interest is settled at repayment, together with principal.
- The APR is variable and Roxom may change it at any time. Rate changes apply to future accruals only, including on active loans, already-accrued interest is not re-priced. See Variable APR policy.
Debt projection example
For a 20,000 USDT/USDC loan at 7.25% APR (simple interest on the original 20,000 principal) with no repayments:
Because interest is simple, each day adds the same ~3.97 to the debt for the life of the loan, accrued interest does not generate more interest. The same rate and mechanics apply whether you borrowed USDT or USDC.
If the BTC price stays flat, the LTV still rises slowly day by day because of accrued interest, even without market movement.
Can I repay early?
Yes. You can repay at any time, partially or in full, with no penalty.- A partial repayment is applied to accrued interest first, then principal.
- A partial repayment does not release proportional collateral. Collateral stays locked until the loan is fully repaid.
- You can always adjust your collateral as long as the LTV thresholds are respected. See the section below.
How do I repay?
Each debt is denominated in its own stablecoin (USDT or USDC) and must be repaid in the same stablecoin held in your Roxom funding account. A USDT loan cannot be repaid with USDC and vice versa. The loan is open-ended, so there is no due date, but when you decide to repay, the required stablecoin has to be in Roxom. If you do not have enough of it to cover what you want to repay, you can:- Deposit USDT or USDC into your Roxom funding account (from an external wallet or another exchange).
- Sell other assets on Roxom (for example, sell some BTC that you hold outside your collateral) to obtain the stablecoin you need, then repay.
- Move USDT or USDC in from your trading account if you hold it there.
Can I repay with BTC?
No. Repayment is only in the stablecoin of the credit line (USDT or USDC). If you want to repay using BTC, the flow is: sell BTC for the required stablecoin on Roxom, then use it to repay. You can use either BTC that sits outside your collateral, or you can free collateral first via Adjust → Decrease Collateral (as long as the resulting LTV stays at or below 50%) and then sell it. On full repayment, the credit line closes and the locked BTC is released back to your funding account immediately. There is no cooldown before opening a new credit line in the same currency. USDT and USDC credit lines are managed independently: repaying one does not affect the other.Manage collateral
You can adjust the BTC backing your loan at any time:- Top-up. Add BTC to your existing loan to lower the LTV. This is the main preventive action against a margin call: you increase the collateral without paying down debt.
- Reduce collateral. Withdraw part of your BTC collateral, as long as the resulting LTV stays at or below 50%. The system validates the post-reduction LTV before unfreezing the BTC.